Lydian provides construction update at Amulsar Gold Project
Monday, Jun 19, 2017
Project Commitments Total $213 Million, or 58 Percent of Estimated Capital Expenditures

Lydian International Limited ("Lydian" or "the Company") announced that construction at the Company's 100%-owned Amulsar Gold Project is proceeding as planned. As of May 31, 2017, project commitments totaled $213 million.


Construction power and water are in place, access roads are complete, the construction warehouse has been erected, and detailed design and fabrication of the electrical distribution equipment are in process. Renovations to a local 250-bed hotel used for initial worker accommodations are complete and the 680-bed permanent residence camp is expected to be completed and occupied this summer.

Advancing site earthworks continues to be the priority. Work is complete on both primary site access roads, the Adsorption Desorption Refining ("ADR") plant platform, the construction warehouse platform, and the heap leach facility ("HLF") 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.

Mine Operations

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-tonne 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 site on schedule. Earthworks preparing the crushing and screening plant building platform are in process.

Heap Leach Facility

Design of the HLF 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 HLF and associated process ponds has also been awarded.

Processing Plant

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.

Howard Stevenson, President and Chief Executive Officer of Lydian, said, "With 58 percent of the initial capital now committed, the construction of Amulsar remains materially on schedule and budget. 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 Amulsar Gold 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.

Upcoming Milestones

During 2017, Lydian expects to achieve the following significant milestones:

  • Complete major earthworks for the HLF, mine haul road, and barren rock storage facility;
  • Complete civils for all components of site infrastructure and equipment;
  • Erect buildings for the material handling system and the ADR plant;
  • Fabrication and delivery to site of major components of mechanical and electrical equipment;
  • Commence installation of mechanical and electrical equipment;
  • Fabrication, delivery to site, and assembly of the mine mobile fleet;
  • Finalize biodiversity offset boundaries; and
  • Hiring and training of staff for mine operations and the processing plant.

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