3 October 2010 - Quarterly operations update

AIMC is pleased to provide an update for the quarter ended 30 September 2010 on operations at its flagship Gedabek gold/copper mine (‘Gedabek’) in Azerbaijan.



  • Record quarterly gold production figure of 19,214 oz at Gedabek
  • Production for nine months to 30 September 2010 totals 47,711 oz Au
  • On track to achieve 60,000 oz Au production target for the year to 31 December 2010
  • 224,000 tonnes of gold dry ore transferred during Q3 2010 onto the leach pad with an average gold content of 4.3 g/t
  • SART now fully operational - revenues from copper and silver sales expected to positively impact FY 2011 financials

This quarter was exceptional for AIMC in terms of gold production, and strengthened its position as a profitable, cash generative gold production company in Azerbaijan.  Importantly, efficiencies at AIMC’s flagship Gedabek mine also continue to improve, which the Company believes will help achieve its 60,000 oz gold production target for 2010.  With the SART processing plant now fully operational AIMC hopes to see the profitability strengthen in the future through the additional sale of copper and silver concentrates.  This, in conjunction with increasing gold production, a favourable gold price and increasing the resource base, ideally places the Company to capitalise on its first mover advantage in the region.
During the quarter ended 30 September 2010, the Company produced 19,214 oz of gold (‘Au’), bringing total production for nine months to 30 September 2010 to 47,711 oz Au.  The winter calendar quarters at Gedabek provide a more testing environment for mining and production but taking account of this, and the improving production efficiencies at Gedabek, the Board anticipates that the Company will achieve its production target to 31 December 2010 of 60,000 oz Au.  The buoyant gold price has also seen AIMC completing gold sales at an average of $1,229 per oz for the months July 2010 to end of September 2010.
The following summary table of gold production and prices highlights the quarter-on-quarter increase in gold production at Gedabek over the past year.

Quarter ended

Gold Produced
(including Govt. of
Azerbaijan’s share) (oz)

Weighted Average Gold Sale

31 Dec 2009



31 Mar 2010



30 June 2010



30 Sept 2010



In terms of processing, during the quarter the Company transferred 224,000 tonnes of dry ore onto the leach pad with an average gold content of 4.3g/t.  For the year to date, AIMC has transferred 609,000 tonnes of dry ore onto the leach pad with an average gold content of 4.35g/t.
During the quarter, AIMC installed a further storage pond, bringing the total on site to three.  The storage ponds facilitate the overflow of solution from the Barren Leach Solution and Pregnant Leach Solution ponds.

The Company’s Sulphidisation, Acidification, Recycling, and Thickening (‘SART’) process for the recovery of the copper and silver dissolved in the leaching solution is now fully operational.  The copper is recovered in the form of a precipitated copper sulphide concentrate by-product, which also contains silver with commercial value.  For the three months to 30 September 2010 the Company produced copper concentrate that contained approximately 60 tonnes of copper (‘Cu’), 510 kg of silver (‘Ag’) and 8 kg Au.  In order to reduce moisture content in the concentrate, AIMC will be introducing new filters in Q4 2010.  The Company also expects first sales of copper and silver to be made in Q4 2010, once a sales protocol has been agreed with our Government partners, which will positively impact FY2011 financials.