Geoteam: Canadian experience in mining industry is exceptionally important for us

ArmInfo. Canadian experience in the field of mining industry is exceptionally important for the mining enterprises of Armenia, Hayk Aloyan, Managing Director of Geoteam CJSC, told journalists at the Armenian-Canadian business-forum on March 14.

"Canada is a country, which is first and foremost known for its mining industry. Holding of an Armenian- Canadian forum will provide us an opportunity to establish a new format of interstate dialog, from which we will try to derive all the possible benefits", Aloyan said. He noted that from the economic and social points of view and in the context of protecting the environment and exploitation of deposits by using new technologies Canada has much more experience and the company's interest in exchange of experience is driven by this fact.

At the same time Aloyan mentioned that Geoteam will continue implementation of corporate social responsibility programs this year. According to him, agricultural programs are planned in Gndevaz community, aimed at development of greenhouse facilities, in Gorayk community a program for ensuring supply of drink water will be implemented, cattle breeding will be assisted in Saravan community and a number of infrastructure problems will be solved in Jermuk.  Geoteam Company does not change the focus in program implementation.  We will further try to be a model of responsibility in Armenia's mining industry", he summarized.

To note, Armenian-Canadian forum was organized by the initiative of Armenian Ministry of Energy and Natural Resources jointly with the Canada's Embassy to Armenia in order to create conditions for deepening and enhancement of interstate cooperation in mining industry. Within the framework of the forum 3 mining enterprises of Armenia: Geoteam CJSC, Vallex Group and GeoPro Mining made presentations.

To recall, Lydian International was founded in the UK in 2005. It is the sole shareholder of "Geoteam" CJSC.  Which received a license on Amuslar in 2006. Around 70 mln USD have been invested in the geological research and other activities since 2006. The majority shareholders of Lydian are the IFC, the EBRD and Newmont Mining Corporation. Lydian plans to invest nearly 426 mln USD in Amulsar project in 2015-2016.

The updated feasibility study demonstrates Amulsar as a compelling opportunity for a large scale, low cost operation utilizing open pit mining and conventional heap leach processing. Highlights include:  total recoverable gold of 2.1 million ounces over a 10.4 year mine life; gold production averaging over 200,000 ounces per year; initial capital costs of $426 million; low all-in sustaining costs of $701 per ounce of gold; 84% gold recoveries and 2.8:1 strip ratio; accelerated after tax-cash flows to support early payback and project financing.

Under the Amulsar project 1500 jobs will be opened during the construction and 700 job places during the whole period of exploitation of the deposit within more than 10 years.