Date of start of production from underground mine in Zangilan announced

In the second half of 2022, the British Company Anglo Asian Mining plc, the AIM-listed gold, copper and silver producer primarily operating in Azerbaijan, may start production from the Vejnaly underground mine in the liberated Zangilan district, Report informs.

According to the Company's 2021 results, a technical study is already underway to determine its commercial feasibility.

At the end of last year, AAM was allowed to enter the Zangilan region. Members of the Company's senior management, including Reza Vaziri, Chief Executive Officer and President, traveled to Zangilan in early December to assess its Vejnaly contract area, including the existing mines at the site.

The Government of Azerbaijan is undertaking rapid economic and infrastructure development of the Zangilan district following the end of the conflict with Armenia. Construction of an international airport is underway, which is due for completion in 2022, and an electrical substation has recently been opened in the district.

The Vejnaly contract area comprises approximately 300 square kilometers situated in the Zangilan district in South Western Azerbaijan. It contains the Vejnaly deposit, which has been subject to prior mining during the Armenian occupation.

Anglo-Asian Mining is engaged in production in Azerbaijan under the PSA (Production Sharing Agreement) signed on August 21, 1997. Azerbaijan's share in the agreement is 51%. The first gold production (at the Gadabay field) began in 2009. Gadabay is an open-pit mine with integrated mines. The company is also engaged in production at the Gosha underground mine, 50 km from the Gadir and Gadabay fields, and at the newly discovered Ughur field.