USGS releases first study to assess global earthquake risk to mineral supplies
Earthquakes have the potential to substantially affect mining operations, leading to supply chain disruptions that adversely affect the global economy.
Lydian International Ltd. (TSX: LYD) reported assay results Thursday from the recently completed 2013 drill program at its 100% owned Amulsar Gold Project in Armenia.
The drill campaign spanned nearly 8,500 meters across 27 diamond and 23 reverse circulation drill holes.
Highlighted assay results from the news release included 221 meters of 1.2 g/t gold in drill hole RCA-505 and 180 meters of 1.3 g/t gold in hole RCA-522. Additionally, drill hole RCA-520 reported 91 meters grading 1.0 g/t gold.
“Deep drilling planned for 2013 at Amulsar was frustrated by equipment performance and ground conditions but the deeper holes that were successful returned impressive consistent grades and supported managements view that additional resource potential still remains untested at depth,” said Lydian President and CEO Tim Coughlin. “It is obvious from this year’s drilling program that the key to unlocking Amulsar’s hidden potential lies in innovative and advanced deep drilling. Drilling this year has also served to extend known gold mineralization laterally away from the current resource shell and has tracked and connected important higher grade zones from within the resource shell.”
Amulsar is an advanced-stage gold and silver project located in southern Armenia. The project contains National Instrument (NI) 43-101 compliant proven plus probable mineral reserves of 2.3 million ounces of gold and 9.9 million ounces of silver.
Lydian has proposed an open-pit, heap leach operation that would entail two pits and a leach pad with capacity for 95 million tonnes. It is anticipated that over 80% of the gold and silver could be leached within a 40-day period.
The September 2012 Pre-Feasibility Study (PFS) calculated highly robust numbers for the project, including a Net Present Value (NPV) of $646 million using $1,200 per ounce gold resulting in an Internal Rate of Return (IRR) of 28%.
Initial capital expenditures to develop a mine at Amulsar were estimated at $270 million with sustaining requirements of $146 million. All-in cash costs were estimated to be less than $800 per ounce of gold.
The company expects to award an engineering contract and release a Bankable Feasibility Study (BFS) before year end, with mill commissioning scheduled for late 2015.
Shares of Lydian are traded on the TSX under the ticker symbol LYD. The company is well capitalized with over $20 million in treasury. Lydian has 128 million shares outstanding and holds a market cap of $113 million as of Thursday’s market close.
