AzerGold CJSC Has Expanded Geological Research in the Country

AzerGold Closed Joint-Stock Company (CJSC) continues active and multifaceted geological research in our country to explore non-ferrous and ferrous metal ore deposits in our country, assess their reserves, bring them into operation, and increase the potential of exploited mines. Research is being conducted in 3 directions: ore fields managed by the CJSC; the general program of geological exploration in the country; and monitoring, inspection, exploration, and evaluation of mineral deposits in Karabakh and East Zangazur.

Under the first direction, AzerGold CJSC is currently conducting research to determine the optimal processing and beneficiation methodology at the Filizchay polymetallic deposit with a complex geological structure in the Balakan region, perform the geological-economic assessment of gold reserves discovered at the Ortakand gold deposit in the Julfa region of the Nakhchivan Autonomous Republic, and optimize open-pit mining parameters. Herewith, active geological research is being conducted in the foothills of the Nakhchivan Autonomous Republic, as well as in the Dashkasen, Goygol, and Kalbajar regions. To identify promising areas more quickly, reduce the costs of expensive drilling works, and cover smaller areas with precise coordinates, non-invasive exploration techniques such as hyperspectral satellite and airborne electromagnetic surveys are being used for the first time in the Caucasus region. In 2022, as part of this highly efficient prospecting and evaluation work, AzerGold CJSC performed hyperspectral satellite surveys in the area of 1624 km2 covering the Kalbajar and Lachin regions of East Zangazur.

In another area of geological activity, according to the Decree of the President of the Republic of Azerbaijan dated June 22, 2023, AzerGold CJSC and the Ministry of Ecology and Natural Resources jointly continue the general geological exploration work in the country. Recently, in collaboration with the Ministry of Ecology and Natural Resources, the data archive on existing non-ferrous and ferrous metal ore deposits in the country has been updated, and statistics on geological exploration performed during the Soviet era, geological maps and graphical applications have been digitized. Thus, a database has been created for each deposit. However, since the Soviet data incompletely reflect the current technological potential and high metal prices, new geological research in the country is required. For this purpose, in the first quarter of 2024, AzerGold CJSC commenced hyperspectral satellite surveys covering an area of ​​2566 km2 in the Ordubad, Julfa, and Shahbuz regions of the Nakhchivan Autonomous Republic. Also, preparation has started for airborne electromagnetic surveys by helicopter, covering an area of ​​1890 km2 in the Dashkesen, Goygol, and Goranboy regions. Furthermore, in the coming years, it is planned to start exploration and assessment using these techniques in the Shusha, Khojaly, and Aghdara regions. In general, this 3-stage research will include prospecting and evaluation, preliminary exploration, and detailed exploration.

As a result of the research conducted in potential mineralization areas based on the aforementioned Decree, geological models of deposits will be built, and existing reserves will be re-evaluated according to international JORC (Joint Ore Reserves Committee) standards to identify prospective mining areas. The geological data collected from comprehensive research on deposits will be provided to an operational investor company chosen by the government to arrange the production process.

Herewith, in line with the I State Program on the Great Return to the Liberated Territories of the Republic of Azerbaijan approved by the Decree of the President of the Republic of Azerbaijan dated November 16, 2022, AzerGold CJSC has been entrusted with important tasks such as monitoring, inspection, exploration, and evaluation of mineral reserves. As part of the State Program covering the years 2022-2026, AzerGold CJSC continues to support the government's policy of utilizing Azerbaijan's natural resources in the liberated territories of Karabakh and East Zangazur for the benefit of the Azerbaijani people.

Transferring new deposits with commercial reserves by the government to the management of the national operator AzerGold CJSC will expand exploitation activity from one production area to new ones and, as a result, restore and preserve the Company's economic development rate.