Azerbaijan that started exporting gold since this July continues increasing volumes of gold export.
The State Statistics Committee informs that from July to 1st November the country produced 204 kg of gold. This volume is equal to 6,559.486 troy ounces.
Earlier RV Investment Group’s founder and president Reza Vaziri emphasized that high level of gold prices would help recoup investments within the gold production PSA.
After the investors recoup their investments, the government will start receiving 51% of export. If the current prices keep investments can be recouped for the next three or four years instead of 7-9 years covered by the contract,” Vaziri said.
By the present gold development in Gedabek has been invested approx. $70 million.
“Now we are dealing with Gosha field. Exploration there is underway. We don’t know exactly how many investments we are going to spend on it, but I think they will total $35-40 million. Exploration at Marif field is ongoing as well. If it turns out gold-bearing, then investments in it will be large,” he said.
It has been exported approx. 5,000 troy ounces up to date. At the same time, RV’s stake totaled 4,700 ounces, as well as stake of the PSA contractors and 465 ounces is a stake of the Azerbaijani government. For the time being, this gold is stored in Switzerland. There are plans to expand export already in 2009 up to 40,000 ounces.
Next year probably 60,000 ounces will be exported from Gedabek gold field,” Vaziri said.
Earlier he expected that export would total 1,200 ounces in July 2,000 ounces - in August and 4,000-4,500 ounces per month since September.
R.V.Investment Group Services LTD has a 51% equity stake in the Gedabek Gold Production Project in Azerbaijan.
As a result of analyses and surveys based on samples taken from the wells, it was established that the field contains around 22 tons of gold, 192 tons of silver and 37,000 tons of copper, as per long-fallow reserves – 14 tons of gold, 123 tons of silver and 22,000 tons of copper.
From these deposits it will be possible to produce 70% of resources – 9.8 tons of gold, 50% - 61.5 tons of silver, 35% - 7,700 tons of copper.
Works are fulfilled in accordance with the Production Sharing Agreement (PSA) signed in 1997 between state company Azerqizil (whose functions now belong to the Ministry of Ecology and Natural Resources) and R.V.Investment Group Services LTD (USA).
Azerbaijan that controls the Gedabek project has a 49% equity stake in the project.
Earlier, the management of producing company claimed of readiness to produce first 70 troy ounces already in July and estimated field’s reserves at 320,000 ounces.
Fineko/abc.az