Lydian International Limited is pleased to announce that it has filed a technical report prepared in accordance with Canadian Securities Administrators' National Instrument 43-101.
The Report may be found on the Company's website and under the Company's profile at www.sedar.com.
The Report provides detail to the disclosure contained in the Company's news release dated September 11, 2014, announcing positive results from the updated feasibility study for Lydian's 100% owned Amulsar Gold Project. The results of the study demonstrate Amulsar is a compelling opportunity to develop a large-scale, low cost operation with substantial upside potential through mine life extension. The independent Report, dated October 22, 2014, entitled "2014 Amulsar NI 43-101 Feasibility Study" was prepared by Joseph M. Keane, P.E., of SGS E&S Engineering Solutions Inc. who was responsible for assembly of the Report and compilation of various sections, along with contributions from other key industry consultants.
Highlights of the Report include:
- An all-oxide deposit with 3 million ounces of gold in measured and indicated resources, plus 2 million ounces of gold in inferred resources;
- Low all-in sustaining costs of $701 per gold ounce;
- Overall gold recovery of 84% and a 2.8:1 strip ratio;
- Average annual production greater than 200,000 gold ounces over a 10.4 year mine life;
- Total recoverable gold of 2.1 million ounces and silver of 3.5 million ounces;
- Initial capital costs of $426 million, delivering 10 Mtpy nominal throughput from the outset of production; and
- After-tax cash flows of $574 million during the first five years.
The Amulsar deposit has the potential to significantly extend the life of mine beyond the current 10.4 year period and remains open at depth.
The Company's current short term objectives include the following:
- Continue advancing the mining rights approval process, which is presently on schedule;
- Complete the independent third-party and internal reviews, and publicly disclose the ESIA;
- Determine the financing structure, complete lender due diligence, and advance to a bank lending mandate;
- Value engineering and project optimization;
- Develop a detailed project execution plan for the pre-construction and early construction periods;
- Front end engineering and design to identify long lead items and prepare for first phase of construction.
The scientific and technical information contained in the Report has been reviewed and approved by Lydian's Chief Operating Officer Marc Leduc, P.Eng. who is a "qualified person" for the purposes of NI 43-101. The following qualified persons, as defined in the NI 43-101, have prepared or supervised the preparation of their relevant portions of the technical information in the Report.
- Mr. Joseph M. Keane, P.E., SGS E&S Engineering Solutions
- Mr. Richard Kiel, P.E., Golder Associates
- Mr. Larry Breckenridge, P.E., Global Resource Engineering Ltd.
- Mr. G. David Keller, P.Geo., AMC Consultants (UK) Limited
- Mr. Martin Staples, FAusIMM, FIMMM, AMC Consultants (UK) Limited
- Mr. Gary Patrick, MAusIMM CP (Met), Metallurg Pty Ltd
- Mr. Charlie Khoury, P.E., Global Resource Engineering Ltd.
- Mr. David Brignall, PhD, BSc, CBiol, CSci, MIEnvSci, Wardell Armstrong International