Lydian International Limited plans initial $426 million investment in Amulsar gold project in Armenia in 2015-2016

 Lydian International Limited plans capital investments of approximately  $426 million in the Amulsar gold project in Armenia in 2015-2016, Hayk Aloyan, Managing Director of Geoteam CJSC  (100% subsidiary of Lydian International Limited) told ArmInfo.   

He said Lydian International has lately published a Press release on the positive results from Updated Feasibility Study for its 100% -owned Amulsar Gold Mine and Heap Leach Project in Southern Armenia.  The updated feasibility study would be available on the official website of the Company within the next 45 days and will indicate that the contained g    ld reserves are 2.5 million ounces, with the plan calling for 2.1 million ounces of recovered gold.  The results of the study demonstrate that Amulsar is a compelling opportunity for the development of a large-scale, low cost operating cost mine, utilizing open mining and conventional heap leach processing.  

Aloyan said the mine life is 10.4 year with the gold production averaging over 200,000 ounces per year.  The average cash  operating cost for gold production will total $642 per ounce of gold.  Gold recoveries will total 84% and the strip ratio anticipated at 2.8:1. The feasibility study highlights accelerated after tax- cash flows in first five years to support payback of the debts required to finance the project. During the Project lifetime, the nominal throughput of 10 million of ore per year is planned from the outset, with processing of higher-grade ore during the initial five years.  The feasibility study has been prepared by SGS, an international mining consultant with additional support from other internationally recognized mining experts. .
According to the Mineral Resources Estimate by the AMC Consultants (UK) Limited, the measured and indicated quantity of gold-bearing ore at Amulsar Gold Deposit is 122,400,000 tonnes.  The estimated gold grade is 0.77 (g/t). The estimated silver grade is 3.5 (g/t), with the contained gold and silver totaling 3,030,000 (oz) and 13,930,000 (oz), respectively.  Managing Director Aloyan said gold reserves may increase after additional exploration is performed at the project.  The inferred quantity of gold bearing ore is estimated at additional 106.2 million tonnes of ore.  
Hayk Aloyan said Lydian International management is in early discussions with a number of potential lenders, including commercial banks, the International Finance Corporation and the European Bank for Reconstruction and Development for project financing. 
Lydian International submitted its mining rights application at the end of July 2014. The application was subsequently accepted for review by the Ministry of Energy and Natural Resources in August 2014. The initial public hearing required by the Environment Impact Assessment (EIA) Law was held in the village of Gndevaz on August 25, 2014.  The second public hearing will likely take place in October 2014, after completion of the reviews by independent experts and receipt of public comments. The Project's approval in conformity with the Law on EIA is a necessary requirement for the Company to be able to pursue international financing for the Project and start construction.
In the course of the construction activities, approximately 1,500 new jobs will be created, while the exploitation phase will involve  around 750 permanent workers, Aloyan said. 
Geoteam CJSC launched large-scale geological exploration for gold and silver at Amulsar resulting in the discovery of the deposit in 2006. It is the only new gold deposit found in Armenia after the collapse of the Soviet Union. The company has already invested $69 million in exploration and development to date.