BAKU: 4 gold deposits discovered

AzerNews, Azerbaijan
June 30 2005

4 gold deposits discovered

Thirty new fields of precious metals, including four gold deposits,
were discovered in Azerbaijan during the geological research
conducted over the past three years.

The largest gold deposit, Chovdar, was found in Dashkasan District
and talks on its development are underway with foreign companies,
officials have said.
The evaluation of the Chovdar deposit carried out in 2004 indicated
that its reserves are approximately the same as those of the other
fields. Foreign companies are also interested in the Bashkand deposit
in Nakhchivan containing an estimated 300-350 tons, said Minister for
Ecology and Natural Resources Huseyn Baghirov.
The Azerbaijani government is considering foreign countries’
proposals on the development of the two gold fields. Exploration and
development will commence after the sides reach a relevant agreement,
Baghirov said.
Azerbaijan has concluded one agreement with foreign investors on the
development of its gold deposits so far. The 25-year contract, signed
earlier by Azergyzyl state company, abolished in 1997, and RV
Investment Group (with Azerbaijan holding 51% stake and the US
company 49%), envisions developing 9 fields containing 400 tons of
gold, 2,500 tons of silver and 1.5 million tons of copper. These
fields are mainly located in the Kalbajar, Zangilan, Dashkasan and
Ordubad regions, including three in Azerbaijani territories under
Armenian occupation that are reportedly operated by Indian companies.
The Azeri government earlier sent a note of protest to relevant
international organizations over the matter.
Although the mentioned agreement was signed eight years ago, the US
company launched the development operations just this year, as the
world prices on gold have been rather low in recent years.