Gold and copper mining company Anglo Asian Mining PLC's production and development plans for the Gosha gold deposit has been approved by the Azerbaijan government.

The Gosha gold mine will be the company's second in Azerbaijan. Its first was the Gedabek which began extracting gold in July 2009.

With exploration work in the Gosha deposit completed in 2011, the country's Ministry of Ecology and Natural Resources approved Anglo Asian Mining PLC's plans which are line with government's plans to double its commercial production of the precious safe haven yellow metal in 2012. Azerbaijan's proven gold reserves have been forecast to increase production from 4.5 tonnes to 7.5 tonnes this year.

Gold reserves in the Gosha deposit are placed between 10,000 ounces to 15,000 ounces per year over five years.

"Receiving approval to push ahead with the development of Gosha is the next step towards fulfilling our strategy to build a multiple gold mine company and unlock the intrinsic value of our large portfolio in Azerbaijan," Reza Vaziri, CEO of Anglo Asian Mining PLC, said in a statement.

The gold producer is required to start the development and production of Gosha within one year from April 25, 2012.

Anglo Asian Mining PLC has likewise discovered another gold deposit in Ordubad, which will become its third operating deposit in the future.

Total gold production by Azerbaijan reached 57,068 ounces in 2011, spurred by the Gedabek mine which was likewise the country's first gold mine.

Anglo Asian Mining PLC acquired rights to develop six deposits in the south-west of Azerbaijan, namely Gedabek, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu based on a Production Sharing Agreemen it signed in August 1997 with Azerbaijani government.