Earthworks preparing the crushing and screening plant building platform are in process at the Amsular gold project in Armenia. The contractor has
mobilized to the site and commenced topsoil stripping.

Advancing site earthworks continues to be the priority. Work is complete on both primary site access roads, the Adsorption Desorption Refining plant platform, the construction warehouse platform, and the heap-leach facility temporary sediment dam. Earthworks and construction activities have commenced on the platform for the crushing and screening plant and in other areas at higher elevations.

The design of the mine haul road is complete and the construction contract has been awarded. Caterpillar is ahead of schedule in producing the primary mine mobile equipment, and initial deliveries are expected to commence in late July. The mining fleet for Amulsar will include, among other things, 19 Caterpillar 789D 180-metric-ton (mt) capacity haul trucks, one Caterpillar 994 front-end-loader, and two Caterpillar 6040 hydraulic shovels. A training simulator has been purchased to train equipment operators. Materials handling system design and fabrication contracts for the crushing and screening plant and the overland conveyor system have been awarded. Fabrication of equipment components is in process, and the first shipment of structural steel for the crushing plant was delivered to the site on schedule. Earthworks preparing the crushing and screening plant building platform are in process. Heap-leach facility design is complete and the contract for the earthworks has been awarded. The contractor has mobilized to site and commenced topsoil stripping. The contract for supplying and installing the geomembrane liner for the facility and associated process ponds has also been awarded.

The contract has been awarded for design and supply of the ADR plant, and fabrication of equipment is under way. Preparation of the ADR building platform is complete.

“With 58% of the initial capital now committed, the construction of Amulsar remains materially on schedule and budget,” said Howard Stevenson, president and chief executive officer of Lydian. “We are pleased with the progress of construction to date and look forward to achieving additional significant milestones through the summer.

“As construction continues to accelerate and employment approaches 1,300 workers later this year, we continue to enhance our safety programs and sustainability management systems to ensure the well-being of our employees, contractors, the environment, and all of our stakeholders.”

The company also announced that the project is advancing its application to secure pre-operational certification under the International Cyanide Management Code with positive assessments by an International Cyanide Management Institute (ICMI) listed third-party auditor and a commendation by the ICMI on its commitment to the Cyanide Code and its pursuit of pre-operational certification.

Lydian is a gold developer, focusing on construction at the Amulsar Gold Project, located in south-central Armenia. Amulsar presents an opportunity for a largescale, low-cost operation with production expected to begin in 2018. Amulsar will be Armenia’s largest gold mine, with estimated mineral resources containing 3.5 million measured and indicated gold ounces and 1.3 million inferred gold ounces. Gold production is targeted to average approximately 225,000 ounces annually over an initial 10-year mine life.