Lydian International (TSE:LYD) has kicked off the 2012 drilling campaign at the flagship Amulsar gold project in Armenia, which is aimed at extending the existing resource.

The drill programme, which will comprise at least 25,000 meters of combined diamond and reverse circulation drilling this year, is designed to delineate new mineralisation to extend the current resource shell both laterally and at depth.

In addition, Lydian plans to drill further prospective exploration targets and carry out infill drilling to upgrade resource categories.

The company noted that the Amulsar resource remains open in all directions with “obvious further potential”.

“We are planning for another exciting year of successful exploration and development of the Amulsar gold project, building on our discoveries,” said president and chief executive of Lydian Tim Coughlin.

“Although Amulsar is an advanced gold project... resource is open and untested in all directions and we continue to be excited about the potential to discover new mineralisation.

“We are particularly interested in finding out what systematic step-out drilling at (the Arshak area) and deep drilling below (the Erato area) will reveal this year.”

The campaign will use two diamond drill rigs and at one reverse circulation drill rig for the planned resource and exploration drilling. Furthermore, the company will use at least two further diamond drill rigs to assist the engineers with further geotechnical studies.

In January this year, Lydian reported a major resource upgrade at the project. It gave Amulsar a further 700,000 ounces of gold and took total resources to 3.2 million ounces.

The report followed 35,000 metres of drilling. And it is made up of mineralisation from Amulsar's three most advanced deposits – Tigranes, Artavasdes and Erato.

Please click here to register for the DUBLIN event.

Please click here to register for the LONDON event. 

Please click here to register for the MANCHESTER event.

A recent funding and separate coal sales deal sets up the Strategic Natural Resources’ Elitheni coal project through to the start of production.

Family-owned Richardson Capital ploughed £8 million into the group, giving it a 29.9 per cent stake.

"The finalisation of this negotiation is the culmination of many months of work identifying and negotiating with prospective investors,” boss David Nel said recently.

Separately steel supplier and commodity trader Trasteel has agreed to take export coal mined from Elitheni, which is in South Africa’s Eastern Cape, up to an initial 2 million tonnes.

Director Jeremy Metcalfe will talk investors in Dublin and Manchester through the group's prospects as it moves through the development phase whilst maintaining a keen eye on exploration.

A strong end to a topsy-turvy 2011 saw a reserves and production increase by over 35 per cent at Caza Oil & Gas.

Well-funded, it has the financial wherewithal to bankroll its drilling aspirations.
Work is already underway on the Sombrero prospect in Lea County, New Mexico, where it has a 20 per cent stake.

But this is just one of a number of exciting developments this year.
Bringing us bang up to date will be chief executive Mike Ford, who will be in Dublin, London and Manchester.

City firm Collins Stewart rates Vancouver headquartered Rathdowney Resources as the standout stock among junior zinc explorers.

The Euro-centred Canadian firm is developing the Olza project in Southern Poland as well as exploring Ireland, with assets in Cork, Westmeath, Laois, Meath and Galway.

"We view Rathdowney as a technically sound, low risk, relatively low capital intensity zinc play, located in an investor friendly jurisdiction with excellent infrastructure and existing smelting facilities nearby," said Collins Stewart analyst Andrei Kroupnik.

Joining us in Dublin to tell us more about the company and its prospects will be chief executive John Barry.

As one of the early entrants into Morocco, Longreach Oil and Gas already has an impressive landholding in what is quickly becoming a hot-spot for exploration.

In Dublin, Andrew Benitz will share with investors his view on what he believes to be the “last under-explored basin in North Africa”.

Regular attendees will already know plenty about Lydian International's exciting Amulsar gold project in Armenia.

In January, Lydian reported a major resource upgrade at the project. It gave Amulsar a further 700,000 ounces of gold and took total resources to 3.2 million ounces.
After a major drilling programme, the focus now is on developing the project, which is due to go into full production in 2014.

Bringing us up to speed with events will be chief executive Tim Coughlin when he joins us in London.

Beacon Hill Resources is one of AIMs most followed coal stocks. The flagship Minas Moatize operation began coking coal production last month. Located in the Tete region of Mozambique, near major infrastructure projects and iron ore mines, it has a lot of promise.

Justin Lewis will be present in London to talk about the ramp-up and expansion of this exciting project.

West Kirkland Mining has amassed over two dozen exploration properties in Nevada and Ontario as it looks to establish new opportunities in prolific gold districts.

Its announcement earlier this month really caught the eye as it reported  significant gold grades and high-grade silver credits from its TUG deposit in Nevada.

It also said a new high priority target area named "12 Mile" has emerged in the Long Canyon trend.  In 2012, West Kirkland has completed eight holes on the TUG property, extending the deposit a further 200 metres to the northwest.

Knox Henderson will be present in London to talk UK investors through its prospective project portfolio.

Simba Energy has a number of exciting opportunities in Africa and recent industry successes are making investors sit up and take notice of this junior explorer.

Director Hassan Hassan will be presenting in Manchester to tell investors more about the group's projects, which are on the doorstep of high-profile ventures.

Lydian International (TSE:LYD) has closed its private placement of 1.4 million shares to the European Bank for Reconstruction and Development (EBRD) to raise C$3.63 million.

The shares were issued at a price of C$2.56 per share. The placement followed the exercise of EBRD’s pre-emptive rights related to Lydian’s C$40 million funding completed earlier this month. Lydian subsequently raised an additional C$6 million after the exercise over an over-allotment option, which was part of the placing.

The proceeds will be used for exploration work and studies at Lydian’s flagship Amulsar gold project in Armenia.

“Our plan is to continue our development of the Amulsar gold project toward planned production and remain a major employer and contributor to the Armenian economy,” said president and CEO Tim Coughlin.

“EBRD’s further investment shows support for Lydian's commitment to developing a successful project that meets high environmental standards, delivers value to shareholders.”

In January this year, Lydian reported a major resource upgrade at the project. It gave Amulsar a further 700,000 ounces of gold and took total resources to 3.2 million ounces.

The report followed 35,000 metres of drilling. And it is made up of mineralisation from Amulsar's three most advanced deposits – Tigranes, Artavasdes and Erato.

The approval included detailed analyses of alternative leach pad sites, the company said, as well as the preparation of an independent EIA.

"The approval of the EIA for the processing of minerals using heap leach technology is a very important step for both the company and its local communities," said president and CEO, Tim Coughlin.

"Amulsar will be the first completely modern mine adopting heap leach technology in Armenia.

"We are committed to making this an exemplary show-case project and something that the company, the local communities and the country can be proud of."

The independent EIA, which was prepared by Eco-Audit LLC and was submitted to the Ministry of Nature Protection in October 2011, detailed the preferred processing flow-sheet, which included three-stage crushing, conveying and stacking,  cyanidation-leaching and gold-silver recovery in a conventional carbon adsorption, desorption, and regeneration (ADR) plant.

Earlier this month, Lydian said that further metallurgical results from its Amulsar prospect again showed its suitability to heap leach processing.

High leach recoveries were obtained over a range of gold head grades from 0.453 g/t gold to 4.5g/t gold, Lydian said.

The silver leach recoveries were more variable due to the silver mineralization at Amulsar, which is fine grained, and requires further liberation.

The KCA testwork program included fine intermittent bottle roll cyanidation and column leach tests.

Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant Indicated Resource of 2.1 million ounces at 0.98g/t gold, plus an Inferred Resource of 1.1 million ounces at 0.92g/t gold (0.4g/t gold cut-off grade).

Lydian also recently completed the $40 million funding that it announced last month.

As reported on February 21, the firm signed an agreement with a syndicate of underwriters for a share placing and the new funds are earmarked for the continued development of the firm's Amulsar project. It will help fund the company as it moves towards the completion of a bankable feasibility study.

Money will also be spent on exploration at the Zoti project in Georgia as well as for working capital, Lydian said.
The syndicate was led by GMP Securities and Scotiabank.

In January 2012, Lydian reported a major resource upgrade at the project. It gave Amulsar a further 700,000 ounces of gold and took total resources to 3.2 million ounces.

The report followed 35,000 metres of drilling. And it is made up of mineralization from Amulsar's three most advanced deposits – Tigranes, Artavasdes and Erato.

The deposits at Amulsar remain open in all directions despite over 90,000 metres of drilling, Lydian said.

Lydian also said today that it has submitted a mining production plan, a safety plan, and an EIA to authorities in connection with its planned mine development and production at Amulsar.

In Toronto, Lydian shares rose 2.61 percent to $2.75, as of 3:59 pm EDT.

Armenia focused gold mine developer Lydian International (TSE:LYD) today unveiled plans for a C$40 million funding.

It has signed an agreement with a syndicate of underwriters for a share placing.

The new money is being earmarked for the continued development of the Amulsar project. It will help fund the company as it moves towards the completion of a bankable feasibility study.

Money will also be spent on exploration at the Zoti project in Georgia as well as for working capital, Lydian said.

The syndicate is led by GMP Securities and Scotiabank. Just over 15.5 million shares will be issued to investors priced at C$2.56 each.

The underwriters also have an option to issue an additional 2.3 million shares to raise an additional C$6 million, as part of the over-allotment arrangements. 

Last month, Lydian reported a major resource upgrade at the project. It gave Amulsar a further 700,000 ounces of gold and took total resources to 3.2 million ounces.

The report followed 35,000 metres of drilling. And it is made up of mineralisation from Amulsar's three most advanced deposits – Tigranes, Artavasdes and Erato.

The deposits at Amulsar remain open in all directions despite over 90,000 metres of drilling, Lydian says.

The new estimate added a further 700,000 ounces of gold to the project’s total resource, which now stands at 3.2 million ounces.

FoxDavies said it had increased its price target for the Toronto-listed firm to C$5.25 following the upgrade.

“This is a fabulous result for Lydian and represents a 28% increase in total gold ounces.” 

The broker added that nearly 1 million ounces (Moz) had also moved up from the Inferred to the Indicated category, which is crucial as it will allow these ounces to be included in future feasibility studies.

“This impressive deposit continues to steadily grow in size as more drilling is completed and is still open in most directions. We expect that this will not be the last resource upgrade for the deposit,” FoxDavies added.

Tim Coughlin, Lydian’s chief executive, said it was a significant step in developing the resources at Amulsar but also added it was not the end of the story.

The updated resource statement comprised indicated resources of 68.2 million tonnes at 1.0 grams per tonne (g/t) gold and 36.1 million tonnes of inferred resources at a grade of 0.9 g/t.

This gives Amulsar 2.1 million ounces of contained gold in the indicated category and 1.1 million ounces in the inferred.

Lydian currently owns 95% of Amulsar with an option to purchase the remaining 5%.

Lydian International (TSE:LYD) today unveiled a new updated resource estimate for the Amulsar gold project in Armenia.

The new estimate adds a further 700,000 ounces of gold to the project’s total resource, which now stands at 3.2 million ounces. 

“This is clearly another significant step in resource development at Amulsar but it is not the end of the story," said chief executive Tim Coughlin.

"Despite 90,000 meters of drilling the resource remains open in all directions. 

"Add to that the largely untested potential at newly identified prospect areas such as Orontes which is about a kilometre away from the resource shell towards the southwest and this coming 2012 drill season should provide further excitement".

The resource upgrade follows 35,000 metres of drilling at the project. And it is made up of mineralisation from Amulsar's three most advanced deposits – Tigranes, Artavasdes and Erato.

Today’s updated resource statement comprises indicated resources of 68.2 million tonnes at 1.0 grams per tonne (g/t) gold and 36.1 million tonnes of inferred resources at a grade of 0.9 g/t.

This gives Amulsar 2.1 million ounces of contained gold in the indicated category and 1.1 million ounces in the inferred.

"This decision gives us added flexibility to properly assess our production financing options for the Amulsar project and continue our progress toward planned production," he added.

The Amulsar project has a total gold resource of 2.5 million ounces which is open in all directions. Lydian hopes to increase that beyond 3 million ounces with the latest drill programme.

The company plans to mine from one open pit from the Tigranes and Artavasdes areas of the project, as well as a separate open pit for Erato in the north. The costs are expected to be comfortably mid-curve at US$419 an ounce to around US$499 – which means the economics are fairly robust.

The preliminary feasibility study said the company could mine Amulsar for seven years, starting initially at 123,000 ounces a year and ramping up to 256,000.

However that was based on mineable material of around 1.64 million ounces.

Amulsar is a high sulphidation-style gold project that currently hosts an indicated resource of 1.1 million ounces at 1.1 grams per tonne of gold as well as an inferred resource of 1.4 million ounces at 0.9 grams per tonne.

Lydian said that the 99-metre four grams per tonne section was found after infill hole DDA-223 was drilled at the Tigranes part of the project. Step-out holes RCA-442, RCA-443 and RCA-454 were drilled along the north-western edge of the resource at Tigranes and intersected 30 metres at one gram per tonne, 52 metres at 0.9 grams per tonne and 21 metres at one gram per tonne respectively.

In all, results have been received from 22 combined diamond and reverse circulation drill holes at Amulsar, with 12 of these resulting in notable intersections.

“Drill hole DDA-223 has returned one of the most exciting intersections yet at Amulsar,” said Tim Coughlin, Lydian’s President and CEO.

"It appears to have drilled into a steep plunging intersection zone where northeast and northwest trending faults and fractures link and interact. In that sense it is quite similar to northwest Artavasdes where long intersections of higher grades and a significant proportion of resource ounces have also been intersected. We have now released 92.7 per cent of our 2011 drilling results, with geological modelling and work on the resource update currently underway and expected to be complete in early 2012."

The company described the metallurgical results as excellent.

On the company’s behalf Wardell-Armstrong International carried out heap leach simulation tests on three master composite samples representing ore from the Tigranes, Artavasdes and Erato deposits. It also carried out four tests on the main rock types at Amulsar

Average gold leach recoveries were 94 and 90 per cent respectively for the master composites and rock types respectively, Lydian said. 

It explained that discounting the laboratory column leach recovery for the master composites by 5 per cent would give a predicted full scale gold leach recovery of 89 per cent. 

“These metallurgical results are further evidence of extraordinarily good recoveries at Amulsar,” said chief executive Tim Coughlin. 

“The results show that there is no significant variability between the different rock types, and that the metallurgical recovery of 85 per cent used in the July 2011 PEA financials would appear to be conservative”.

Lydian said that the main objective of the work was to test the master composites prepared from specific metallurgical drill holes representing each of the main Amulsar deposits. It also explored testing of the main rock to determine if there was any potential metallurgical variability.

The firm has also shipped 10 tonnes of drill core to Kappes-Cassiday & Associates for further metallurgical testwork as part of the Bankable Feasibility Study. This work will be to test representative samples for both spatial and depth variability.

Lydian revealed a number of other key observations from the Wardell-Armstrong work. 

It said that the master composites exhibited very fast leach kinetics, with leaching completed after 47 days.  Meanwhile the high grade Fault Gouge and Gossan rock type composites exhibited slower leach kinetics, taking 75 and 114 days respectively.

The Amulsar project has a total gold resource of 2.5 million ounces which is open in all directions.

The company plans to mine from one open pit from the Tigranes and Artavasdes areas of the project, as well as a separate open pit for Erato in the north. The costs are expected to be comfortably mid-curve at US$419 an ounce to around US$499 – which means the economics are fairly robust.

The preliminary feasibility study said the company could mine Amulsar for seven years, starting initially at 123,000 ounces a year and ramping up to 256,000.

However that was based on mineable material of around 1.64 million ounces. 

The current resource is globally 2.5 million ounces and Lydian hopes to increase that beyond 3 million ounces with the latest drill programme. 

No, Lydian isn’t about to pull the trigger on a fundraising, he asserts. 

So yes the group has the financial wherewithal to take the Amulsar Project in Armenia through to the project financing stage.

At issue is what Coughlin describes as a “funding overhang” created by an imminent US$5 million payment due to mining major Newmont.

The worry emanating from the brokers in Toronto, where the shares are listed, is that Lydian won’t come cap in hand for just US$5 million. 

The fear is the firm will ask for US$15 million or US$20 million, which promises further dilution for investors.

What they don’t realise is that Coughlin and his team have the option to defer this payment – which is exactly what they will do.

And so it will start next year with an estimated US$12 million in the bank. 

This is more than enough to meet its financial requirements through to the middle of  next year when it then has to make the big decisions about financing the plant at Amulsar, Coughlin says.

“The perceived funding gap just doesn’t exist,” the Lydian chief executive maintains.

The project, in this landlocked and mountainous country, is impressive with a total gold resource of 2.5 million ounces open in all directions.

The recoveries are 90 per cent plus, while the costs are comfortably mid-curve at US$419 an ounce to around US$499 – which means the economics are fairly robust.

The company will mine from one open pit from the Tigranes and Artavasdes areas of the project, and there will be a separate open pit for Erato in the north.

The preliminary feasibility study said the company could mine Amulsar for seven years, starting initially at 123,000 ounces a year and ramping up to 256,000.

Of course that was based on mineable material of around 1.64 million ounces.

The current resource is globally 2.5 million ounces and there is a desire to get it to beyond 3 million ounces with the latest drill programme.  So the mine’s life should at least double.

The fact the deposit remains open at depth may allow for an underground operation. 

“There is that magic figure in everyone’s mind of 5 million ounces (of gold resource), and I get asked whether Amulsar could be five (million ounces),” says Coughlin.

“The answer is yes with the underground.”

Around 38,000 metres of a 40,000 metre drilling campaign have been completed, with the results being released periodically. The most interesting information is likely to come from the deeper holes. 

In the meantime the transformation continues apace. One landmark already passed, but largely overlooked by the market, was land status approval awarded at the start of last month.

This is possibly the most pivotal point in the permitting process. “It basically changes the land status on the hill-top to industrial status. 

“The EIA and the impact assessments for the leach pad and the infrastructure we are yet to do.”

They will be completed at some point in the second quarter of next year.

Before that, investors are expecting a resource update based on that ambitious drilling programme.

This should be released towards the end of the year.  However it may be carried over to early 2012 depending on when the six drill rigs pack up for winter.

The preliminary feasibility study put the cost of Amulsar at just over US$160 million and gave the project a net present value of US$515 million.

The publication of a bankable feasibility study towards the end of the first quarter should place some meat on the bones.

The project will be financed via a mix of equity and debt – with investors expected to foot around 40 per cent of the bill.

If the share price is strong then Lydian might raise a little more from investors, Coughlin intimated. That said, lenders are also lining up.

“Eight commercial banks are looking at the debt side of the equation,” the Lydian chief says.

“There are also three development banks – two of which are on our shareholder register.”

He is referring of course to the International Financial Corporation, and offshoot of the World Bank, and the European Bank of Reconstruction and Development.

Their participation is a tick in the box for the project and Armenia as a place to invest. 

The Lydian story finally seems to be gaining traction with investors, with shares up 12 per cent in the past month and changing hands at around C$2.40 each. That said, the analysts reckon it is worth closer to C$4 a share. 

Meanwhile, the feedback from the recent round of investor meetings has been positive. “The message is getting out there and people are buying stock,” Coughlin adds. Long may this continue.

Lydian International (TSE:LYD) today unveiled step-out drill results from the Amulsar gold project, in Armenia, which it says outlines the potential for resource extensions around 500 metres to the northwest of the Tigranes prospect.

Today’s drill results come from the latest 29 holes drilled at Amulsar. One of the holes, targeting the northwest trending Artavasdes fault, intersected 101 meters at 2.2 gram per tonne gold, from surface. 

Overall among the other drill highlights Lydian intersected mineralisation with lengths ranging from 10 to 101 metres, with grades between 0.9 to 2.2 grams per tonne gold.

"This is another solid set of drill results that confirm the geologic model and quite clearly extend resource potential towards the northeast and southeast at Amulsar" chief executive Tim Coughlin said. 

"So far this year we have drilled a total of 34,500 metre and released results from approximately 70 per cent of these drill meters. 

“We are well on track to complete in excess of our proposed 40,000 metre programme ".

Lydian emphasised that the Artavasdes fault is now a ‘well constrained higher-grade fault-breccia structure’ and it should contribute to an overall increase in resource grade for the Artavasdes area. 

Furthermore it said that the resource also remains open along the mapped trace of the Artavasdes fault structure, towards the southeast in the Arshak area.       

It added that the exploration drilling to the northeast of Tigranes has amplified the potential for additional resource ounces in this area, for at-least a further 500 metres from the limits of the current pit-shell. 

Lydian International (TSE:LYD) today reported that the land the hosts the Amulsar gold project has now been reclassified as industrial land, as opposed to agricultural land.

In a stock exchange statement the company said that this change of land status is a significant step in Armenia's mine permitting process. 

Lydian chief executive Tim Coughlin said: "This is a major event for us and an indication of Armenia's willingness to support foreign investment. 

"We remain on schedule with our aim to be in production in 2014 and this approval means the Company can commence construction, pre-stripping and stockpiling of run of mine ore as scheduled in 2012". 

Lydian explained that two regional governors and eight separate government ministries were involved and cleared the company's land status change application, and this was subsequently submitted this to the Prime Minister's office. 

The land status change at Amulsar applies to the Company's current mining license surface allocation area which incorporates the proposed open pit area at Tigranes and Artavasdes and also covers pit extension areas at Erato and Arshak, Lydian added. 

The share price kicked into gear on August 8 and is up 43 per cent in the last six weeks.

In fact there is a real buzz around Lydian now that analysts have digested the fine detail of the preliminary feasibility study (PFS) on the Amulsar project in the mountainous former soviet state.

TD Securities’ analysis of the company is typical of the upbeat coverage of late. It set a C$4 a share price target for the shares, which are currently changing hands at C$2.80. 

Broker Stifel Nicolaus is even more bullish, valuing the Lydian share at C$4.20 based on an NPV of around US$515 million – almost double the company’s market capitalisation.

July’s PFS covered the Tigranes and Artavasdes areas of Amulsar, which host 1.64 million potentially minable ounces of gold out of a total resource of 2.5 million ounces.

Annual production is predicted to be 123,000 ounces in the first three years rising to 256,000 ounces in year four through to year seven.

The economic assessment put cash costs of the open pit operation at US$419-US$499 per ounce, which is very much at the lower end of the cost curve.  

The mine itself would have an initial capital cost of US$162.6 million and it would have an internal rate of return of 45 per cent.

TDS analyst Daniel Earle expects the company to come up with a far more aggressive mine plan when it publishes the definitive feasibility study in the second quarter of next year.

He is modelling average annual gold production of 218,000 ounces at a cash cost of US$413 an ounce, with initial capital costs of US$275 million.

And he expects to see the resource base grow: “While the deposit is of only moderate size at present, we believe that the company has recently made a breakthrough in its understanding of the controls on mineralisation.”

Indeed recent drill results suggest that significant resource growth is possible, Earle says, pointing to intersections of 69 metres and 100 metres at grades of 3.8 grams and 1 gram per tonne respectively.

Initiating coverage with a “buy”, the analyst points out that Lydian is currently trading at six tenths of its net asset value, where competitors are on 0.9 times NAV.

Stifel’s Craig Stanley, meanwhile, indentifies to a number of catalysts that will help maintain the stock’s upward trajectory.

They include the metallurgical test work set to be released in the final quarter, an updated resource statement based on an aggressive drilling campaign, also before the year end, and the all-important bankable feasibility study (BFS) early next year.

One of the worries of investors new to the Lydian story is the potential sovereign risk associated with Armenia.

One look at Lydian’s shareholder register ought to assuage those fears. 

Its leading shareholders are the International Finance Corporation and the European Bank for Reconstruction & Development - organisations whose mandate is to invest in the stable emerging economies of the world.  

“We believe the political risk of having its sole project in Armenia is manageable given the company's impressive in-country management team and the numerous mines in operation in the country,” says Stanley. 

“In addition, the company’s largest shareholders include the IFC and the EBRD, both of which have invested in other sectors of the Armenian economy and should provide strategic support in permitting Amulsar."

Alongside the release of drill results for a 32 holes at Amulsar, Coughlin said: "Resource conversion and resource extension drilling is proceeding well at Amulsar with our better understanding of the geometry leading to more efficient resource conversion drilling and to exciting intersections that systematically extend the resource beyond its current limits. 

"We have a new insight now into the structures that host gold grade and can see them extending for some distance and away from the current resource in all directions. 

Most importantly, with the deeper drill holes we are drilling this year it is very clear that in some mineralized structures the gold grade remains strong at depth meaning that eventually a high-grade underground resource accessible via decline from the bottom of the proposed pit or from an adit on the hillside may need to be considered."

Today’s drill results come primarily from infill and step-out drilling from the Tigranes and Artavasdes areas of the Amulsar project.

The best drill results from the Tigranes area had lengths between 17 and 63 metres and grades from 1 to 2 grams per tonne gold. Meanwhile at Artavasdes intersection ranged from 10 metres to 156 metres, grading between 1 and 1.3 grams per tonne gold.

A number of holes, reported today, also came from the Arshak area – an area to the east of Artavasdes and Tigranes – here Lydian cut intersections with lengths of 11-25 metres grading 1 to 1.1 grams per tonne gold.

Amulsar currently hosts a 2.5 million ounce gold resource and it is still open in all directions. 

In July, the firm unveiled the positive findings of a preliminary economic assessment (PEA) covering the Tigranes and Artavasdes areas of Amulsar. These areas host 1.64 million potentially minable ounces of gold, and the assessment gave the areas a net present value (NPV) of US$515 million – using a US$1,200 gold price.

The PEA showed that Tigranes and Artavasdes could provide annual gold production of 123,000 ounces in the first three years rising to 256,000 ounces in year four through to year seven. The economic assessment put the mine's cash costs at US$419-499 per ounce while the mine would have an initial capital cost of US$162.6 million and it would have an internal rate of return of 45 percent.

This economic assessment was subsequently followed up with further analysis known as a trade-off study.

Last week the company told investors that detailed engineering work, a bankable feasibility study and a new resource estimate will be combined into one definitive study in the first half of next year.