Lydian International expected to launch gold recovery in Armenia in first half of 2017

Lydian International Limited plans to launch gold recovery from Amulsar Gold Deposit in the Southern Armenia in the first half of 2017, Lydian International Limited President and CEO Howard Stevenson said in a 
press briefing on 16 October.

According to him, after the final mining permit is granted, the construction activities on the site are planned for the second quarter of 2015 and will take 18 months. Company anticipates the 
Armenian Government to grant the final permission for field operation by January 2015, Howard Stevenson said. 

He told that 17 representatives of international banks and credit organizations visited the Amulsar Gold Deposit last week to prepare a report on the deposit's potential. Howard Stevenson said investors positively assessed the Project and will reflect that assessment in their reports. He believes that Amulsar Gold Project with its economic component is extremely attractive by any definition, considering the inferred reserves of 75 tons, recovery rate, and other economic parameters. Another visit included representatives of the International Finance Corporation (IFC), and European Bank for Reconstruction and Development (EBRD), who are the shareholders and potential creditors of Lydian International Limited. CEO Stevenson emphasized that these international financial institutions require implementation of the highest environmental standards, from their clients. 

He said investments in the geological exploration and other activities since the deposit was discovered in 2006 totaled $69 million. After the final mining permit capital investments will total $426 million. The pay-back period is five years in line with the updated feasibility study published in September. Along with other external risks, Stevenson mentioned the world gold demand trends. A gold price of $1,250 per ounce is indicated in the feasibility study, currently it is $1.240 per ounce 

The president of the Lydian International Limited says the implementation of the Amulsar Gold Project may have a very positive impact on economy of the country and on development of the local communities. It is anticipated that with current gold prices, the state budget tax revenues will total $40 million per year and nearly $1 million will be paid to the local governments per year for the lease of the community lands. Up to 1500 jobs will be created in the course of the construction activities at the Project site, with the majority of workforce from Armenia. Over 700 people will be employed during the Project operation within the coming 10 years. There will be also indirect benefits in terms of contracts and services, Stevenson said.  

As it was reported earlier, Lydian International Limited plans capital investments of approximately $426 million during the 2 years of construction.  

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 indicates that the contained gold reserves are 2.130 million ounces. 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 $694 per ounce of gold Gold recoveries will total 84% and the strip ratio anticipated at 2.8:1. The return of investments is anticipated in 5 years of production. 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 122.4 million 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. The inferred quantity of gold bearing ore is estimated at additional 106.2 million tonnes of ore.  

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.

Lydian International listed on the Toronto Stock Exchange (TSX) on the 10th January 2008. EBRD and IFC are the majority shareholders of the company and hold by 6.9% stake.