Lydian International (TSX: LYD), the junior gold exploration company focussed on advancing its Amulsar Gold Project in Armenia, continues to dish out good news for shareholders. Amulsar is currently being explored as part of a JV with Newmont Mining (NYSE: NEM), and currently hosts a NI 43-101 compliant inferred mineral resource of 31 million tonnes grading 1.0 grams per tonne of gold at a 0.4 g/t cut-off, for 1 million ounces. (reported March 2009).
This morning the company reported additional heap leach amenability test work conducted on samples taken from Amulsar. The results indicated that the ore was “highly amenable” to heap leaching, with whole ore cyanidation gold recoveries on half and quarter inch crush bulk samples reported to be 95-97%.
The work conducted by SGS Minerals Services was designed to build on previous tests, and focussed on coarser fractions and lower cyanide solution concentrations than previous work, and included column leach tests which are being conducted on very large fraction half-drill core to simulate minimal or no crushing.
“Metallic screens of the composites shows that greater than 98% of the gold has a size fraction less than 106 microns,” Lydian reported. “The results confirm the observations made in previous work indicating that a gravity concentration step is not warranted with no significant coarse gold component present.”
Two different size fractions, 75 microns and 2mm, were used for bottle roll tests. All tests showed “high levels of gold extraction reaching a minimum of 80% recovery of gold” after 24-48 hours. Final extractions for all three samples at both sizes tested were in the range of 89-95% after the full 14-day test period. Cyanide consumption was very low in all tests.
"These results continue to amplify the attractive economics of the Amulsar project; bulk mining of low-grade ore with a leach operation requiring only a minor crush or perhaps even no crushing at all are feasible,” stated Lydian’s CEO, Timothy Coughlin. “We look forward to the results of the column leach tests on a 38mm size fraction that are currently underway. All-in-all, it appears as though Amulsar is shaping up to be a low-cost mining and processing operation."
UK broker Fox-Davies Capital has a ‘buy’ recommendation on Lydian International and a target price of C$1.39 per share.