Name and Location
Amulsar gold project, southern Armenia.

Client
Lydian International, a wholly owned subsidiary of Geoteam CJSC.

Project Description
The results of an updated feasibility study on the Amulsar project have demonstrated a compelling opportunity for the development of a large-scale, low-cost operation using openpit mining and conventional heap-leach processing.

Envisioned is an owner-operated mining fleet delivering run-of-mine ore at a nominal rate of ten-million tonnes a year from the three openpits to the primary crusher.

The ore will be reduced in size through a three-stage crushing facility from 700 mm to 100% passing 12.5 mm. Overland conveyors will transport the crushed ore about 6.2 km to a crushed ore stockpile. From there, it will be reclaimed by belt feeders underneath the stockpile and transferred to a load-out bin by a conveyor. Lime will be added to the ore on the conveyor and trucks will haul the ore about 500 m to the heap-leach pad for stacking.

The planned heap-leach facility comprises the leach pad and collection ponds. The leach pad will be built in three phases, with a total ore-heap stacking capacity of 104-million tonnes over the 10.4-year project life. The collection ponds will include the process pond and two storm event ponds. Process solution and storm/snowmelt water will flow from the leach pad and will gravity drain through a spillway from the pad to the process pond. Spillways will connect the ponds for potential runoff overflows.

Stacked ore on the heap-leach pad will be treated by applying barren leach solution at a rate of 10 l/h/m².

The overall leach cycle is 110 days, with primary leaching and secondary leaching of comprising 55 days each.

More than 70% of the gold is expected to be recovered during the primary leach. Pregnant leach solution will be collected in the process pond and then pumped into a standard adsorption, desorption and recovery plant for processing. The strip solution from the carbon columns will be transported to the electrowinning circuit where the precious metals will be deposited onto steel mesh cathodes, dried in a retort and smelted into doré bars. Doré will be shipped offsite to be refined and sold. Overall gold recovery is expected to be 84.2%.

Net Present Value/Internal Rate of Return
The project has an after-tax unleveraged internal rate of return of 20.2% and a net present value of $306-million, based on a discount rate of 5% and a gold price of $1 250/oz.

Value
Initial capital costs are estimated at $426-million.

Duration
Construction is expected to start in the second quarter of 2015, with commissioning expected late in 2016.

Latest Developments
Lydian plans to invest up to $480-million in the development of its Amulsar gold project, the former Soviet state's Economy Minister has said.

Construction works at the mine are expected to start next in the first quarter if next year and be completed within two years.

The Minister has said that Geoteam CJSC raised $325-million from the Orion Mine Finance and Resource Capital Fund VI L.P, a mining-focused private equity firm, and is seeking further funds from the International Financial Corporation and the European Bank for Reconstruction and Development.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Lydian International, tel +44 1534 747 890 or email moreinfo@lydianinternational.co.uk.