Micon Awarded Front End Engineering Design for AzerGold’s Chovdar Integrated Process Plant

por | Feb 23, 2021

  • Front End Engineering Design and Definitive Feasibility Study contract awarded to Micon valued at US$2.4m after the successful completion of a preliminary feasibility study in the 4th quarter of 2020.
  • The Chovdar Sulphide Project aims to produce a minimum of 60,000 gold ounces per annum for at least six years.
  • The engagment will include:
    • indicative assessment and recommendations of refractory ore oxidation technologies.
    • detailed engineering design and cost estimation of the Chovdar Integrated Process Plant capable of processing ore from the Chovdar deposit and the surrounding satellite deposits.
    • JORC Mineral Resource and Ore Reserve estimates including development of operational pit designs for the various satellite deposits to extend the operation life of the Chovdar Gold Mine.

Micon International Co Limited (Micon) is pleased to announce that it has been retained by AzerGold CJSCo (AzerGold) to complete the Front End Engineering Design (FEED) and Definitive Feasibility Study (DFS) on the Integrated Process Plant and Chovdar Satellite Deposits. AzerGold made the decision at the end of 2020 to proceed with the FEED and DFS after Micon successfully completed a preliminary feasibility study (PFS) in the 4th quarter of 2020. As part of the PFS Micon evaluated various process technologies in detail to prove up an economically viable project for the underground Chovdar sulphide material and the surrounding deposits.

In executing the FEED, Micon has subcontracted the design and costing of the process plant and associated infrastructure to highly experienced industry consultants, Zenito Limited (Zenito) and design and costing of the tailings management facility and geotechnical study to CQA International Limited. The environmental and social impact assessment will be performed by local environmental specialist company IQLIM Ltd from their office in Baku city, Azerbaijan.

“Our combined vast international experience has proven that no two projects are similar and as such our approach has always been to cater to the unique requirements of our client,” comments Liz de Klerk, Managing Director of Micon in the United Kingdom. “Micon is excited to be awarded the FEED and DFS on such an exciting project and the prospect of supporting AzerGold in delivering a world class study. We believe that our proven track record in delivering projects within budget and on schedule will be to the mutual benefit of AzerGold and Micon and we look forward to a rewarding and lasting partnership.”

The Chovdar gold mine is located in the north Dashkasan region of Azerbaijan. AzerGold has been carrying out extraction works in the deposit and surrounding areas since 2017. Currently, open pit mining is successfully ongoing at the established Chovdar Gold mine.

Upon the completion of the FEED, AzerGold intends to award an EPC contract for construction of the Integrated Process Plant expected to be operational by the end of 2nd quarter of 2022.

The Project targets a minimum production of 60,000 gold ounces per annum for at least six years and incorporates refractory ore oxidation technology assessed by Micon as a possible process technology for the refractory ore from the Chovdar and surrounding satellite deposits. The engineering design of the new 1.1 Mtpa comminution and whole ore Carbon-in-Leach (CIL) Integrated Process Plant will be completed in accordance with Class 3 of the Association for the Advancement of Cost Engineering.

Mr. Ogtay Mammadov, Deputy Chairman of AzerGold said: “Entering the FEED phase moves AzerGold toward its goal of producing annually a combined 60,000oz of gold. The project is well on track to commence production in the 3rd quarter of 2022.”

AzerGold is currently assessing various satellite deposits to determine their techno-economic viability to serve as potential feed to maintain gold production of the Chovdar Mine. As such, the Mineral Resource and Ore Reserve estimates, to be completed in accordance with the 2012 version of the JORC-code, will be completed for the following satellite deposits:

  • Agyokush;
  • Agyokush 2;
  • Mereh;
  • Tulallar; and,
  • Narchala

The Ore Reserve estimates of the Satellite Deposits will all be based on conventional drill and blast, open cast mining method. Mining operations will be performed by third-party mining contractor.

The crushed run of mine will be hauled to the Chovdar Mine for gold extraction by either heap leaching of the oxide material through the existing infrastructure and CIL of the underground sulphide material through the Integrated Process Plant.

For each satellite deposit, the DFS will include a review the geological data and interpretations from the exploration drilling programmes. Micon will prepare a 3D geological and resource model, complete geostatistical analyses and prepare a JORC (2012) Mineral Resource estimate for each of the Satellite Deposits. Micon will also undertake the open pit mine design and develop an operation mine production schedule, review the available metallurgical testwork data and the process engineering, as well as review geotechnical, hydrological, hydrogeological, environmental, and other modifying factors of the Project.

About Micon International Limited

Micon is an independent consulting firm of senior geologists, mining engineers, metallurgists, geostatisticians and environmental and social specialists headquartered in Toronto, Ontario, Canada, and maintaining fully integrated offices in Vancouver, Canada and Norwich, United Kingdom, as well as retaining full-time consultants based in Russia and France.

Micon has provided consulting services to the world’s mining industry since 1988. The firm comprises highly qualified and experienced professionals who are guided by the Company’s principles of Integrity, Competence and Independence. Each member has extensive experience with mineral exploration, mining companies and leading consultant groups.

The firm’s clients include mining and mineral exploration companies, financial institutions and government agencies from around the world. Assignments have been carried out in almost every country for such commodities as precious and base metals, industrial minerals, diamonds and energy minerals. Particular expertise has been developed in the economic evaluation of mining properties, including studies in support of debt and equity financing. Micon’s professional staff have the experience, education and professional credentials to act as Qualified Persons and/or Competent Persons, as required by world-wide regulatory agencies.

About Zenito Limited

Zenito is a multidisciplinary engineering consultancy specialising in the design of mineral processing plants and associated infrastructure. Every project is different, and Zenito’s boutique engineering team lends itself to flexible and efficient working. This means that specific Client requirements can be delivered on time and on budget, while retaining a high work standard.

Zenito is independent. By having no affiliations with any other consultancies, equipment suppliers, or laboratories, the firm can tailor its technical solutions to whatever is the most advantageous for each project, and satisfies a project’s requirements.

About CQA International Limited

CQA is an environmental engineering consultancy that specialises in geotechnical and mining engineering, waste management and environmental remediation, delivering pragmatic engineering solutions on projects throughout the world.

The firm’s capabilities are founded on a solid track record of successful projects and the technical ability of its team, which includes highly qualified and experienced design engineers, environmental specialists and construction supervisors.

CQA specializes in balancing practical engineering design with innovation to achieve timely and cost-effective solutions. Whether a client needs planning and strategy studies, engineering design, procurement, contract management or construction supervision, CQA’s experienced team give a hands-on, personal service with a track record of success.


IQLIM is a consulting and engineering company specializing in projects environmental protection. The company was founded in 2004. Services include the development of environmental projects, engineering and research, assessments for the components of the natural (from the geological environment to the atmosphere) and the socio-economic environment, environmental monitoring, environmental impact assessments, and socio-economic impact assessments, etc.

IQLIM strives to be a sustainable organization. The company has set itself the goal of creating social, environmental and economic value for our customers and businesses. The company uses all its capabilities to advise its clients and offer sustainable cooperation.

The company’s clients are the public and private sectors, consisting of international organizations such as the World Bank, regional and local authorities, government agencies, port authorities, project staff.

Since its inception, the company has carried out many environmental projects for the following sectors:

  • water resources, water supply and sewerage, water treatment in cities;
  • management of solid waste in cities;
  • cleaning and rehabilitation of contaminated soils;
  • environmental monitoring and assessment for offshore infrastructures (oil fields, ports, sea canals, coastal terminals, etc.);
  • environmental monitoring and impact assessment for mining and ore deposits;
  • development and implementation of projects for the cleaning and rehabilitation of lakes, offshore zones in the urbanized areas;
  • implementation of engineering and environmental supervision in infrastructure projects;
  • climate change and etc.

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