TORONTO, Ontario, May 20, 2015 – Lydian International Limited (TSX:LYD) (“Lydian” or “the Company”) is pleased to announce that its updated National Instrument 43-101 Technical Report (the “Updated Technical Report”) with enhanced project economics has been filed on SEDAR (www.sedar.com). Lydian engaged AMC Consultants (UK) Limited (“AMC”) to update relevant portions of the Company’s feasibility study entitled, “2014 Amulsar NI 43-101 Feasibility Study,” dated October 22, 2014 and prepared by SGS E&S Engineering Solutions Inc. (the “2014 Technical Report”).
This Updated Technical Report for Lydian’s 100% owned Amulsar Gold Project located in Southern Armenia includes an optimized mine design that takes into account the recent legislative changes which now allow for a maximum ramp gradient of 10% in Armenian open pit mines. Fuel cost assumptions have also been updated to take into account the current trend for diesel prices in Armenia. These changes to the 2014 Technical Report provide a significant reduction in expected operating costs of approximately $83 million and a reduction in expected mining capital expenditures of approximately $3 million, for total expected savings of approximately $86 million.
Howard Stevenson, Lydian’s President and CEO, stated, “While we did not get to the $100 million savings we were aiming for, we are very pleased with the improvement in project economics that has resulted from the update to the feasibility study. In particular the expected reduction in All-In Sustaining Costs* to approximately $664 per ounce of gold produced is a significant improvement that enhances Amulsar’s position on the industry cost curve. Our value engineering activities are continuing and are focused on alternative crushing arrangements which would allow us to further reduce initial capital costs without adversely impacting operating costs.”
The technical information in this release has been reviewed and approved by both Joseph Keane FAusIMM, FIMMM of SGS KD Engineering, and Mr. Martin Staples, FAusIMM, FIMMM of AMC Consultants (UK) Limited, both consultants to the Company and qualified persons for the purpose of NI 43-101.
The results in this news release reflect finalized results of the updated Technical Report that were updated subsequent to the Company’s press release dated April 9, 2015.
About Lydian International
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 and establishing the Company as a high cash-flow producer. The Company is committed to best practices in all aspects of its operations including production, sustainability, and good corporate citizenry. For more information on Lydian please visit www.lydianinternational.co.uk.
Caution regarding forward-looking information
This news release contains certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. All statements, other than statements of historical fact, included herein, including statements with respect to the ability of the Company to optimize and/or enhance the base case as set out in the 2015 Technical Report for the Amulsar Gold Project, including with respect to operating costs and capital costs, ability to realize expected cost and capital savings, the ability of the Company to potentially include the results of mine redesign and value engineering processes in new or updated feasibility studies or any future financial analysis of the Amulsar Gold Project, the ability of the Company to carry forward and incorporate into future studies of the Amulsar Gold Project the mine design, work that will evaluate and optimize the project configuration and operating costs and capital costs, the potential development of any mine at the Amulsar Gold Project, business and financing plans and business trends are forward-looking statements. Information concerning mineral reserve/resource estimates and the economic analysis thereof contained in the feasibility study also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, mine site planning and development, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors”, which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Cautionary Note concerning estimates of Measured, Indicated and Inferred Mineral Resources
This news release uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with National Instrument 43-101 (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes Canadian standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission (“SEC”), and mineral resource information contained herein may not be comparable to similar information disclosed by United States companies. This news release uses the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” to comply with reporting standards in Canada. We advise United States investors that while such terms are recognized and required by Canadian regulations, the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into mineral reserves under SEC definitions. These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Therefore, United States investors are also cautioned not to assume that all or any part of the “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” exist. In accordance with Canadian rules, estimates of “inferred mineral resources” cannot form the basis of pre-feasibility or other economic studies. It cannot be assumed that all or any part of the “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” will ever be upgraded to a higher category.
*All-in sustaining costs are calculated in accordance with the standards published by the World Gold Council (“WGC”).
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