TORONTO, ONTARIO--(Marketwire - Sept. 7, 2012) - Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a gold-focused mineral exploration and development company, is pleased to report that it has filed its NI 43-101 Heap Leach Feasibility Study (FS) for its Amulsar Gold Project in Armenia.
Results from this Feasibility Study were previously announced on September 5, 2012. The key outcomes highlighted an NPV of $646m at 5% discount rate and an IRR of 27.7% (at $1,200/oz gold). All figures are in US Dollars unless otherwise stated.
Highlights of the Feasibility Study (base case using $1,200/oz gold)
- Proven and probable open pit mineral reserves of 2.26 million ounces gold and 9.63 million ounces silver
- Average life-of-mine (LOM) waste to ore ratio of 2.23:1 (1.80:1 years 1 to 3)
- 12 year LOM with expansion in year four from a nominal-ore feed rate of 5 million tonnes per year to 10 million tonnes per year
- Steady state annual gold production for years 1 to 3 of 118,341 ounces per year and for years 4 to 12 of 186,047 ounces per year via heap-leach processing
- Average LOM cash operating cost of $468.5/oz
- Pre-tax net present value (NPV) of $646 million at a 5% discount rate generating an internal rate of return (IRR) of 27.7%
- Estimated start-up capital cost of $269.6 million
At a gold price of $1,500, pre-tax NPV at a 5% discount rate is in excess of $1.05 billion and the IRR is 38.1%. Further opportunities exist to improve project economics through additional exploration drilling, resource conversion and engineering options.
Lydian International Ltd.'s Board of Directors has accepted the Amulsar gold project's Feasibility Study and has instructed management to implement the Study's recommendations, further develop and bring the Amulsar gold project to commercial production.
Qualified Persons for Feasibility Study
The resource update and feasibility study was prepared by the following independent engineering firms:
- KD Engineering, under the direction of Mr. Joseph M. Keane, P.E; responsible for overall report contents and preparation and all matters relating to the design and costs of the processing facility.
- Golder Associates, under the direction of Mr. Richard Kiel, P.E; responsible for all matters relating to the HLF and WDF, the introduction, the geotechnical and the update extracted from the NI-43-101 Preliminary Economic Assessment entitled "Development of Amulsar Heap Leach Facility" and Mr. Pete Lemke, P.E; responsible for all matters relating to the Wastewater Treatment Plant design.
- Independent Mining Consultants, under the direction of Mr. Herb Welhener, MMSA-QPM; responsible for all matters relating to geology, drilling, open pit and mine design.
- Wardell Armstrong International, under the guidance of Mr. John Eyre, FRICS MIMMM MIQ CEnv; responsible for all matters relating to the Environmental and Social Impact Assessment.
An NI 43-101 compliant Technical Report will be filed on the Company's website and on SEDAR within 45 days.
This release has been reviewed and approved by Mr. Joseph M. Keane, P.E, and Pete Lemke, P.E of KD Engineering, Mr. Richard Kiel, P.E of Golder Associates, Herb Welhener, MMSA-QPM of Independent Mining Consultants and John Eyre, FRICS MIMMM MIQ CEnv of Wardell Armstrong International, in each case, a "qualified person" as that term is defined in NI 43-101. This release has also been reviewed and approved for the Company by Gary Anthony Patrick, BSc (Chemistry/Extractive Metallurgy), MAusIMM CP, the Company's Development Manager and a "qualified person" as that term is defined in NI 43-101.
About Lydian International
Lydian is a gold-focused mineral exploration and development company with expertise employing "first mover" strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and, in particular, developing its flagship Amulsar gold project in Armenia. Lydian also has a pipeline of promising early-stage gold and base metal exploration projects in the Caucasus regions.
Lydian's management team has a track record of success in grassroots discovery, in acquiring and developing undervalued assets, and in building companies. Lydian has a strong social agenda and a unique understanding of the complex social and political issues that characterise emerging environments. The Company's significant shareholders include the International Finance Corporation which is a member of the World Bank Group and the European Bank for Reconstruction and Development. More information can be found on Lydian's web site at www.lydianinternational.co.uk.
Caution regarding forward-looking information:
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterised by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements regarding the Company's intended planned exploration. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors" which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.