Lydian International Inc (OTCMKTS:LYDIF, TSE:LYD) unveiled a positive upgrade to its mineral resource and reserve at its giant Amulsar Gold project in Armenia, which saw a 16% uplift in the higher confidence measured and indicated category.
The update included results from the firm’s 2016 drill program, which covered the Tigranes-Arshak-Artavasdes (TAA) area and included 95 reverse circulation (RC) and diamond drill holes.
This included a tight spaced drilling program on an approximate line spacing of 20 metres with 20 metre spacing of drill holes along each line.
The measured and indicated resource estimate was increased by 19.8 million tonnes to 142.2 million tonnes – a 16% increase while notably the same gold grade was maintained.
The mineral reserve estimate was lifted by 184,000 contained gold ounces to 2.606mln contained gold ounces, which was an increase of 8%.
The mine plan was also improved to reduce the waste to ore strip ratio from 2.4 to 2.2 and increase contained gold ounces scheduled in the first five years of production by 8% to 1.5 million contained gold ounces.
The work also confirmed the previously estimated mineral resources for an early-phase mining area.
Lydian has now begun construction at its huge gold mine in Armenia.
Last week it said it had inked five key equipment supply contracts for its project ahead of the 2017 construction season.
The mining company said the contracts would provide the equipment needed to support its mining fleet, materials handling system, gold-recovery plant, electrical systems, and worker accommodation.
Lydian expects mining production will reach 25mln tonnes of material during the first year of the operation.
Lydian shares are up 1.28% to stand at C$0.395.
Story by ProactiveInvestors