Lydian International Updates on Project Upgrades at Amulsar

Lydian International Ltd. (TSX:LYD) released an update on potential additional project upgrades at its Armenia-based Amulsar project. The upgrades would be completed via a value engineering program.
As quoted in the press release:

Second quarter engineering programs focused on testing and analysis of a number of opportunities to improve Amulsar economics. Consideration was primarily directed toward opportunities to reduce capital costs and to identify other areas where operating cost improvements may be further realized. This included incorporating new Armenian mining legislation to redesign the mine through reconfiguring the crushing plant, conveyor belt design revisions, and refinements to the site layout. The possibility of moving from self-mining to contract mining is also under review.

As outlined in the Lydian news release dated May 20, 2015, an expected savings of approximately $86 million will result from an optimized mine design that takes into account legislative changes by the Republic of Armenia which now allow for a maximum ramp gradient of 10% in open pit mines. Fuel cost assumptions were also updated to take into account the current trend for diesel prices in Armenia. These changes provided a significant reduction in expected operating costs of approximately $83 million and a reduction in expected mining capital expenditures of approximately $3 million.

The potential to redesign the crushing and screening plant represents one of the more important opportunities to further reduce capital and operating costs. Metallurgical testing is being conducted on a total of 30 columns to determine the effect on gold recoveries and other operating parameters, such as reagent consumption, when crush size is increased from a P₁₀₀ crush size of 12.5 millimeters to 19 millimeters. If successful, a larger crush size combined with the findings of a blast fragmentation study may support reconfiguration and reduction of crushing equipment. Additionally, the energy requirement for crushing may be reduced if a larger crush size can be utilized.

An alternative route and configuration of the conveyor belt is being reviewed. A more direct route may result in up to a 15% reduction in the overland conveyor length, fewer elevated sections, and elimination of the transfer station. Analysis of the operating belt speed is also being examined, which may allow the belt width to be reduced. Other site layout revisions are being considered to reduce construction earthwork volumes, improve surface water management, and combine various facilities to reduce duplicated infrastructure.

Howard Stevenson, president and CEO of Lydian, commented:

We are pleased with the progress to date. This program is an important step toward ensuring maximum project economics. Much of this work will also support enhanced construction and operating conditions and further mitigate environmental and social impacts. We expect to bring these value engineering studies to conclusion in due course and quantify our findings through an update of the Amulsar technical report.

Click here to read the full Lydian International Ltd. (TSX:LYD) press release.