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Azerbaijan’s state-run gold miner AzerGold is advancing development of the Soyudlu (Zod) gold deposit in the Kalbajar district, completing its first drilling and blasting operation as it prepares the site for active mining.
The company announced Monday that the blast marks a new stage in the mine’s development, bringing the project closer to putting its resources into economic production.
The deposit, regarded as the largest gold deposit in the Caucasus, lies along Azerbaijan’s border with Armenia. Part of the deposit is located in Armenia, where it is known as the Sotk deposit.
AzerGold has carried out geological studies, topographic surveys and drilling at Soyudlu since August 2025, with drilling reaching a total depth of 18,000 meters, state news agency Azertag reported.
The exploration work estimates the deposit has 1.03 million ounces of recoverable remaining gold reserves, based on the JORC standard, an internationally recognized framework used to classify and report mineral resources and ore reserves.
At a gold price of around $4,400 per ounce, the reserves have a gross market value of roughly $4.5 billion.
The initial rock blasting was conducted under an approved technical design and applicable safety requirements. Before the operation, a controlled safety perimeter was established, warning signals were issued and site controls were put in place.
Tests examining the mineralogical and metallurgical characteristics of Soyudlu ore have established that flotation technology is required during the initial processing stage, AzerGold said. The company is therefore carrying out technical and economic assessments of the possibility of developing a modern flotation processing complex.
The planned processing approach is being developed alongside preparations to bring the mine into operation.
The Soyudlu project currently employs 236 people, including workers from contracting organizations. Of those, 55 are registered residents of Kalbajar district.
AzerGold said the local labor market has a limited supply of candidates with the specialized qualifications, technical expertise and mining experience required for some positions, prompting the project to bring in qualified specialists from other regions.
During the initial mining and construction phase from 2026 to 2029, the project is expected to provide approximately 700 direct and indirect jobs. Employment is expected to exceed 1,300 people once the Soyudlu mine reaches full-scale operations.
The mine’s commissioning is also expected to increase production capacity in Azerbaijan’s mining sector, generate additional state budget revenues and support employment and economic activity in Kalbajar district, the company added.
AzerGold CJSC was established by a decree signed by Azerbaijani President Ilham Aliyev on Feb. 11, 2015, and began operations in July 2016.
The state-owned company has since expanded from gold mining into a broader mining business covering the exploration, development, extraction, processing and sale of mineral resources, including gold, silver, iron ore and polymetallic deposits.
AzerGold says it has sold more than 563,000 ounces of gold and 989,000 ounces of silver on domestic and international markets over its operating history, generating more than AZN 1.9 billion ($1.1 billion) for Azerbaijan’s economy.
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