Gedabek, located in western Azerbaijan, is an open pit, heap leach operation, which is targeted to produce approximately 70,000 oz Au of gold in its first full year of production.
AIMOC, led by Anglo Asian Mining plc, also plans to develop new mines and continue exploration at Gosha (Tovuz) and Ordubad (Nakhchivan) fields.
It was estimated that Gedabek had a combined gold equivalent resource of about one-million ounces, while capital costs for the project were estimated at $30.7-million.
Until 2015, 300 000 ounces of gold is likely to be produced from Gedabek.
On the New York Mercantile Exchange, gold for August delivery added $3.30 to $924.30 an ounce on June 24.
Anglo Asian Mining Plc (49%) and Azerbaijan (51%) signed a 30-year Production Sharing Agreement (PSA) to develop previously identified copper and gold properties in Azerbaijan that lie on the Tethyan Mineralization Belt which runs between Turkey and Pakistan.
The joint venture has copper and gold development properties in 3 separate mining areas of Azerbaijan.
The six fields reflected in the agreement include one field in Nakhchivan, one in Gandja, one in Gedebey, 3 in the occupied lands (Zod Field in Kelbedjer, Kizilbulag in Aghdara, and Vajnali in Zangilan).