A revised feasibility study for Lydian International Ltd.'s Amulsar gold project in Armenia slashed net present value, discounted at 5%, to US$363 million from US$386 million outlined in 2017 to reflect the impact of an anti-mining blockade.
The blockade, set up in June 2018, hindered project development and pushed Lydian to the brink of further defaults. However, the company recently obtained support from Armenian Prime Minister Nikol Pashinyan, who urged protesters to stop blocking access to the site and gave Lydian the greenlight to advance the project.
The study, based on a gold price of US$1,300 per ounce, defined a 14.9% internal rate of return and an initial capex of US$508.2 million, including US$362 million in incurred costs used to complete 75% of the project. Cash costs and all-in sustaining costs were pegged at US$671/oz and US$744/oz, respectively.
Total recoverable gold was projected at 2.5 million ounces over a 12-year mine life, an increase of 192,000 ounces from the previous study.
