Lydian International (TSX: LYD) says new mine ramp gradients will allow it to save up to $100 million in operating costs, and trim total cash costs to US$600 per oz from US$642 per oz at its Amulsar gold project in southern Armenia.
The increase in the mine ramp gradients for haul roads from 7% to 10% brings the country’s mining regulations into better alignment with international standards, Lydian says, and the company believes that the ruling will enable it to make changes to its current mine design and improve project economics.
Under the new rules, Lydian anticipates that the strip ratio of waste to ore estimated in its 2014 feasibility study will fall from 2.8:1 to 2.5:1. That will reduce the mining of waste rock by up to 30 million tonnes, more than a 10% decrease, as well as reduce haul distances, management says. There is also potential for reductions to the equipment fleet, and the possibility of a minor increase in ore mined and gold ounces recovered through deepening of the project’s three open pits. Lydian has already engaged AMC to redesign the pits based on the legislation.
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