Lydian International Ltd. (TSX:LYD) released the results of an updated feasibility study for its Armenia-based Amulsar gold project, commenting that they show Amulsar is “a compelling opportunity for the development of a large scale, low cost operation utilizing open pit mining and conventional heap leach processing.”

Highlights include:

Total recoverable gold of 2.1 million ounces over a 10.4 year mine life;
Gold production averaging over 200,000 ounces per year;
Initial capital costs of $426 million;
Low all-in sustaining costs of $701 per ounce of gold;
84% gold recoveries and 2.8:1 strip ratio;
Accelerated after tax-cash flows in first five years to support early payback and project financing;
After-tax unleveraged IRR of 20.2% and NPV of $306 million based on a discount rate of 5% and a gold price of $1,250 per ounce.

Howard Stevenson, president and CEO of Lydian, commented:

This study produced an excellent outcome from both technical and economic perspectives. Moving the previously planned location for the heap leach facility has allowed us to optimize the entire site layout. We have also focused on pulling operating cash flows forward with our planned construction of a full scale, 10 million tonnes per year processing facility at the outset and using a higher cut-off grade for five years with lower grade material stockpiled for processing in later years. Our plan to generate over $570 million of after-tax cash flow during the first five years of operations provides an attractive rate of return and enhances our ability to add leverage to the planned financing arrangements.

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