Lydian gets mining right for Amulsar Gold Project in Armenia

PanARMENIAN.Net - Lydian International Limited has announced that it received approval of the mining right for the Amulsar Gold Project in Armenia. This represents the final stage of the mining permitting process and grants the company the right to develop the Amulsar Project in line with the parameters detailed in the feasibility study, Azomining reports.

The mining right was granted to Geoteam CJSC, Lydian's 100% owned subsidiary, by the Ministry of Energy and Natural Resources of Armenia.

The approval covers 1) all project infrastructure, including the location for crushers, the conveyor and heap leach facility, 2) a mining permit applicable to all three pits, 3) definition of the area within which operating activities may take place, and 4) a mining agreement that outlines the nature and duration of mining operations.

Granting of the mining right follows an extensive application, consultation, and review process. Previously, Lydian received approval of its environmental impact assessment (EIA) from the Ministry of Nature Protection. In parallel, the Ministry of Emergency Situations approved the Technical Safety Program (TSP).

Howard Stevenson, President and CEO, said: "We look forward to a long working relationship within Armenia as this project progresses into construction and production. Lydian intends that Amulsar will become an exemplary mining and investment project in Armenia, beneficial both for the country and for our investors. Lydian is committed to implementing best international practices at Amulsar by complying with IFC and the EBRD environmental and social standards throughout the project's duration."

Lydian is an emerging gold developer, focused on its 100% owned Amulsar Gold Project, located in Southern Armenia. The Company's current mine development and construction plan for Amulsar is aimed at achieving average production of 200,000 ounces of gold per year.

The Amulsar gold mine is situated only 13 kilometers away from Jermuk, a popular spa town in the country’s Vayots Dzor province. Many environmentalists, economists, as well as local residents and authorities have expressed their concerns over the project, which they fear may endanger the local environment and ultimately the economic status of Jermuk, a town that mainly lives off tourism. Environmentalists say the operation of the mine will result in the release of 90 million tons of toxic elements.

President of the Republican Association of Employers Gagik Makarian also painted a gloomy future for Jermuk in the event of the Amulsar gold mine’s operation. “As a result of the mine’s operation people in Jermuk will be losing jobs as the number of tourists will decrease and the sales of [famous Jermuk] mineral water will also fall,” he said.