Baku Today, Azerbaijan
Oct 15 2004

RV Investment Commences Exploitation Of Gold Deposits Of Azerbaijan

15/10/2004 10:12

RV Investment Services Group LLC from the United States is to commence
the exploitation of promising gold deposits in Azerbaijan, according
to Turan news agency.

In early September it concluded a contract on the drilling work with
VEIN Ltd. from the UK. The drilling will be done in the Kedabek and
Gosha deposits in Tovuz and the Piyazbashi, Agyurd, Shekerdere and
Keleki deposits in Ordubad, Nakhchivan. The experts of VEIN Ltd. are
to start their visit to Azerbaijan on 20 October, according to Fizuli
Samedov, Chief of the RV Investment Azerbaijan Office.

He said the first stage of the work would last until June 2006 and
$50 million will be invested in the deposits. The investment will
help to buy machines and devices required to process the minerals.
Over 4,000 people expected to be employed.

The production-sharing agreement on the gold deposits was signed
between Azergizil Concern from Azerbaijan and RV Investment Services
Group LLC on 20 August 1997 and confirmed by the Parliament of
Azerbaijan in March 1998.

The Ministry of Ecology and Natural Resources represents Azerbaijan
in the contract. It will get 51% of the profit.

The contract envisages the extraction of minerals from 9 gold deposits
of Azerbaijan in Kedabek, Tovuz, Ordubad, Kelbadjar and Zangelan. The
lst two districts of Azerbaijan are under controll of Armenia.

The deposits envisaged by the contract contain 400 tons of gold,
2,500 tons of silver and 1.5 million tons of copper. The investment
in the project can most likely total $500 million. The term of the
contract is 25 years. Azerbaijan is to receive 80% of the incomes
that would derive from the exploitation of the deposits.