OREANDA-NEWS. December 18, 2009. The State Statistics Committee (SSC) informed that over these months to 1st December 2009, 277 kg of gold was extracted in the country. In November, production made 73 kg.

Since July volume of production was equal to 8,906.8 troy ounces, including 2,347.3 in November.

Earlier, RV Investment Group’s establisher and President Reza Vaziri emphasized that high level of gold prices, which formed at the world market,  will help recoup investments within the gold production PSA.

“After the investors recoup their investments, the government will start receiving 51% of export. If the current prices remain, investments can be recouped over next three or four years instead of 7-9 years covered by the contract,” Vaziri said.

By the present approximately US70 million gold has been invested in development in Gadabay.

“Now we are dealing with Gosha field. Exploration there is underway. We don’t know exactly how many investments we are going to spend on it, but I think they will total US 35-40 million. Exploration at Marif field is ongoing as well. If it turns out gold-bearing, then investments in it will be large,” he said.

About 5,000 troy ounces have been exported up to date. At the same time, RV’s stake totaled 4,700 ounces, as well as stake of the PSA contractors and 465 ounces is a stake of the Azerbaijani government. For the time being, this gold is stored in Switzerland. There are plans to expand export already in 2009 up to 40,000 ounces. In 2010, probably 60,000 ounces will be exported from Gadabay gold field.

Earlier, he expected that export will total 1,200 ounces in July 2,000 ounces - in August and 4,000-4,500 ounces per month since September.

R.V.Investment Group Services LTD has a 51% equity stake in the Gadabay Gold Production Project in Azerbaijan.

As a result of analyses and surveys based on samples taken from the wells, it was established that the field contains around 22 tons of gold, 192 tons of silver and 37,000 tons of copper, as per long-fallow reserves – 14 tons of gold, 123 tons of silver and 22,000 tons of copper.

From these deposits it will be possible to produce 70% of resources – 9.8 tons of gold, 50% - 61.5 tons of silver, 35% - 7,700 tons of copper.

Works are fulfilled in accordance with the Production Sharing Agreement (PSA) signed in 1997 between state company Azerqizil (whose functions now belong to the Ministry of Ecology and Natural Resources) and R.V.Investment Group Services LTD (USA).

Azerbaijan that controls the Gadabay project has a 49% equity stake in the project.

Earlier, the management of producing company claimed on readiness to produce first 70 troy ounces already in July and estimated field’s reserves at 320,000 ounces.