JOHANNESBURG (miningweekly.com) – TSX-listed Lydian International on Thursday said its 100%-owned subsidiary Geoteam had secured approval from the Ministry of Energy and Natural Resources of Armenia for a mining right for the Amulsar gold project, in Southern Armenia, in the Middle East.
The mining right provided the green light for Lydian to develop the $426-million large-scale, low-cost openpit gold mining operation with low all-in sustaining costs of $701/oz.
The emerging gold developer aimed to start construction in the second quarter of 2015 and commission the new mine late in 2016.
A feasibility study published earlier this year demonstrated a “compelling opportunity” for the development of an all-oxide deposit with three-million ounces of gold in measured and indicated resources, as well as two-million ounces of gold in inferred resources.
The company expected the mine to deliver more than 200 000 oz of gold, or a total of 2.1-million ounces, over a 10.4-year mine life.
Lydian president and CEO Howard Stevenson said the company planned to generate over $570-million of after-tax cash flow during the first five years of operations.
Lydian submitted its mining rights application at the end of July, which was subsequently accepted for review by the Ministry of Energy and Natural Resources in August 2014.
“The previous environmental-impact assessment (EIA) and Technical Safety Programme (TSP) approvals, and now this most recent approval of the mining right, were the subjects of intensive and thorough interaction with the Armenian authorities, local communities, members of civil society and others,” said Stevenson.
Lydian previously received approval for its EIA from the Ministry of Nature Protection, acting under the Armenian Mining Code and EIA Law, based on expert reviews, public discussion and the minutes of public hearings, while the Ministry of Emergency Situations had approved the TSP.