The British company Anglo Asian Mining Plc (AAM) has announced the start of operations at the Gilar copper-gold deposit, located within the Gedabek contract area in the Karabakh Economic Region of Azerbaijan.
A preliminary mineral resource estimate for the Gilar deposit was published on December 11, 2023. According to the report, the deposit contains 6.1 million tonnes of ore with an average grade of 0.88% copper and 1.3 grams of gold per tonne. For now, the extracted ore will be stockpiled until the processing plant becomes operational, which is expected in July. The deposit is being developed through underground mining, and the company expects to reach full operational capacity of 50,000 to 60,000 tonnes of ore per month within the next few months. In total, AAM plans to extract over 54,000 tonnes of copper and 255,000 ounces of gold from this site.
In 2023, Anglo Asian Mining reported a significant increase in the estimated gold resources at Gilar. According to new data obtained from the drilling of 13 additional boreholes, the mineral resources (not classified under the JORC Code) amount to over 249,000 ounces of gold, 46,000 tonnes of copper, and 48,000 tonnes of zinc. Previously, the figures stood at 135,000 ounces of gold, 21,500 tonnes of copper, and 23,000 tonnes of zinc.
Photo: Anglo Asian Mining Plc
“The latest promising drill results have increased the deposit's resource base and provided further confidence in the mineralization. These results also reaffirm the decision to begin construction of an underground tunnel at Gilar for exploration and mining purposes,” the company stated.
Commenting on the development to Azerbaijani media, Stephen Westhead, Vice-President of AAM, described Gilar as a significant gold and copper project. According to him, the lower zone of the deposit has the potential to supply high-grade ore to the agitation leaching plant at a rate of around 700,000 tonnes per year for over three years. This will help assess remaining resources and expand the overall mineral resource estimate. “The company is very pleased that Gilar can help extend the life of the current Gedabek processing facilities until the Kharkhar and Garadagh projects come online,” said Westhead.
Garadagh is known for its large porphyry deposits, while Kharkhar is a copper deposit. Both are located in the Gedabek Copper District, which is also rich in molybdenum ores.
It is important to note that the JORC Code is intended to ensure transparency and reliability in public reporting aimed at informing investors. The JORC Code defines a Competent Person as someone with the appropriate qualifications and professional experience to report on mineral resources and ore reserves, in accordance with the mandatory Code of Professional Conduct. Although the latest figures for the Gilar deposit were released outside the JORC framework, this does not diminish the significance or potential of the deposit.
Anglo Asian Mining's primary operations in Azerbaijan are centered in Gedabek. This year, the company plans to commission the Zafar deposit, and in the coming years, it aims to bring Garadagh, Kharkhar, and Demirli-located in the Karabakh Economic Region-into production.
AAM’s strategic growth plan envisions transforming the company into a mid-tier, diversified copper and gold producer by 2029. By that time, copper is expected to become the company’s main product, with forecasted production volumes of approximately 50,000-55,000 tonnes of copper equivalent annually. AAM plans to achieve this growth by launching four new mines between 2025 and 2029-Zafar, Gilar, Kharkhar, and Garadagh.
In 1997, Azerbaijan signed a Production Sharing Agreement (PSA) with Anglo Asian Mining to develop six deposits: one in Nakhchivan, two in Gedabek, and three in the Kalbajar and Zangilan districts. Azerbaijan holds a 51% stake in the agreement. The total gold extraction across these six sites was projected at 400 tonnes. Remarkably, Azerbaijan entered into this agreement despite the fact that some of these territories were under Armenian occupation at the time. Anglo Asian Mining has since been extracting precious metals from the Gedabek and Gosha contract areas, and currently holds rights to eight contract areas in Azerbaijan.
AzerGold, an Azerbaijani state-owned company. Photo: ABC.az
In July 2024, Azerbaijan took a significant step toward strengthening state participation in its mining sector. The state-owned company AzerGold officially became a party to the Production Sharing Agreement (PSA) governing the development of mineral deposits in Azerbaijan-an agreement that had previously been concluded solely with Anglo Asian Mining Plc (AAM). As part of the revised agreement, AzerGold replaced the Ministry of Ecology and Natural Resources as the official Azerbaijani representative in the PSA, signaling a strategic shift toward greater state oversight and operational integration in the country’s extractive industries.
In addition to the institutional changes, minor amendments were also made to the terms regarding the use of infrastructure and facilities at the contract areas of Gyzylbulag, Demirli, and Vejnali. These modifications are expected to enhance coordination between the state and the operator, streamline project implementation, and help unlock the full economic and strategic potential of these deposits-particularly in light of their location in formerly occupied territories that are now being reintegrated into Azerbaijan’s national economy.
This development reflects Azerbaijan’s broader vision to optimize resource management, attract foreign investment under clearer frameworks, and ensure that the country’s vast mineral wealth contributes more effectively to long-term national development goals.
