RV INVESTMENT GROUP TO START GOLD MINING OPERATIONS IN GEDABEY IN SEPTEMBER
According to R. Veziri, drilling of exploratory holes in Gedabey will be completed in August. Afterwards, the $47 million plant with the production capacity of 1.5 million tons of gold will be constructed. Construction activities will take 3-4 months.
Director of the Azerbaijan international Mining Company representing RV Investment Group Gerald Phillips said that the results of the drilling work are encouraging.
The gold ore samples were sent for further survey to the specialized laboratories in the Northern Ireland and Canada. As early as in Soviet times, Azerbaijani geologists estimated gold and copper deposits at 800 thousand ounces and 20 million tons. Gedabey goldfield’s proximity to the railway and motorway will drastically cut infrastructure costs.
Mining cost of Gedabey gold will be $155-225 per ounce with the gold price in the world markets making up $570 per ounce now. It is the world’s lowest mining cost.
According to G. Philips, gas and copper reserves in the Gosha field (Tovuz) are estimated at 4 thousand ounces and 5 million tons respectively. Mr. Philips said that this estimation is going to be confirmed but exploratory drilling in Ordubad has not yielded positive results.
The company has spent $28 million so far.
RV Investment Group signed the agreement with the Government of Azerbaijan in 1997. The agreement included goldfields in Ordubad, Gedabey and Gosha zones as well as three goldfields in the Kelbajar, which is currently occupied by Armenian armed forces. The share of Azerbaijan in the agreement is 51 percent. Gold reserves are estimated at 94 million ounces.
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