Ecologists and Lydian International Representatives Discussing Amulsar Mine Project

Today, on May 6 ecologists, green activists, representatives, of "Geoteam" and Lydian International, Ministry of Nature Protection and Ministry of Energy and Natural Resources RA have participated in a discussion on Amulsar mine project. The discussion was held at Aarhus Center in Yerevan. 

During the discussion the activists expressed their concern over eco-risks related to the development of the mine. Lawyer and green activist Artur Grigoryan has drawn attention to the fact that the mine is located between Kechut and Spandaryan reservoirs. Moreover, Amulsar is located in a seismically active zone, as well as in Sevan Basin. The Armenian legislation prohibits any sort of economic activities for the latter might pose risk to Sevan. 

In her turn, head of "Forests of Armenia" NGO Nazeli Vardanyan has drawn attention to the fact that Saravan and Gndevaz communities, along with their gardens and grazings, are located within 5 km from the mine. She believes that dangerous elements contained in the ore mining wastes might infiltrate the food.  She also believes that blasting operations, aimed at extraction of mineral, might adversely affect the Jermuk mineral water springs or, even worse, cause them to run dry. 

Head of "EcoLur" NGO Inga Zarafyan has negatively estimated the government's decision on transplanting potentilla porphyrantha, a plant on Amulsar Red List. According to her, this contravenes several environmental laws and codes.

Lydian International CEO Didier Fohlen has told the media that Amulsar mine project will be implemented in accordance with the best international experience in this field. "Armenia is not the only country where mines are developed in seismically active zones. We can clearly model seismic occurrences in order to secure the mine. We believe there will be no dangerous occurrences that will adversely affect the mine development works", he said.  
Fohlen has also assured that the results of the ecological studies (which have cost the company approximately 5 mln USD) show that the works will have no negative impact on Sevan and Jermuk mineral springs. 

As for potentilla porphyrantha, it has already been said that the company carries out plant conservation activities. "We have held discussions with representatives of Botany Institute and other relevant Cambridge institutions and we have decided to spend 700.000 USD on plant-conservation activities, as well as on transplanting if needed. Such practice is implemented all over the world", he said.  

Lydian is an emerging gold developer, focused on its 100%-owned Amulsar Gold Project in Southern Armenia. Amulsar will be Armenia's largest gold mine, with total estimated mineral resources containing 3 million gold ounces as measured and indicated resources, 2 million gold ounces as inferred resources, and estimated annual production targeted at 200,000 gold ounces.  Lydian received approval of the Mining Right for Amulsar in late 2014. This represents the final stage of the mining permitting process and grants Lydian the right to develop the Amulsar Gold Project in line with the parameters detailed in the updated feasibility study (October 2014). The updated feasibility study demonstrates Amulsar as a compelling opportunity for 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 to support early payback and project financing. Lydian International was founded in the UK in 2005. It is the sole shareholder of "Geoteam" CJSC. The majority shareholders of Lydian are the IFC, the EBRD and Newmont Mining Corporation.