USACC (United States Chamber of Commerce)
Jan 13 2005

RV Investment to Develop Azerbaijan’s Gold Deposits in 2005

The US RV Investment Company, which signed a contract with the
government of Azerbaijan on the development of gold deposits in 1997,
intends to implement the project in 2005. The company headed by Reza
Vaziri has passed a final decision on the issue and signed a contract
with British VAEN to launch operations in the fields, the company’s
Baku office reported.

This week UK specialists are scheduled to start development
operations in the areas covered by the project. In the initial stage,
RV Investment will start operations in Gadabay District, northwest
Azerbaijan, and further in Ordubad district of the Nakhchivan
Autonomous Republic. An infrastructure will be set up in the fields
and preparations for drilling activities made in the first half of
this year.

The company plans to spend $50 million on the operations, with most
of the amount to be drawn in loans from foreign banks.

Three wells will be drilled in a gold deposit located in Gadabay
District alone. The company says that this will be considered
economically viable if it is possible to get over 2 grams of gold
from a ton of soil.

Vaziri, who is also a co-chair of the US-Azerbaijan Chamber of
Commerce, said earlier that RV Investment will commence development
activities on Azerbaijan’s gold fields only in case gold sells at
over $320 per ounce in world markets. It has been a year since world
gold prices have exceeded this level and RV Investment has started
talks with contractor companies.

Along with Gadabay and Ordubad districts, the US company is also
authorized to carry out the development of gold deposits located in
Kalbajar, Azerbaijan’s region under Armenian occupation. The
company’s leadership believes that it will be possible to start
tapping deposits in Kalbajar after Azerbaijani lands are liberated
from occupation.

There were reports a few years ago saying that the gold fields
located in Kalbajar District are being operated by Canadian Global
Golden and Dynestry Golden companies. Then Vaziri sent letters to the
companies urging them to halt operation activities if they were
actually being carried out.

Under the contract signed by RV Investment and the Azerbaijani
government, the US company is required to invest $120 million in
development and $500 million in operation of 6 gold deposits in the
country.