(MENAFN- ProactiveInvestors)Toronto-listed gold mine developer Lydian (TSX:LYD) has declared itself pleased with progress on its engineering programmes at its Amulsar project in Armenia. The programmes have focused on testing and analysis of a number of opportunities to improve the economics of the gold projection with the primary aim being to reduce capital costs and identify further areas where operating cost improvements could be implemented. Among the options being considered are redesigning the mine to incorporate new Armenian mining legislation (which now allows for a maximum ramp gradient of 10% in open pit mines) and outsourcing the mining operations. As declared in its May update the company reckons optimising the mine design could generate savings of around C$86mln. Fuel cost assumptions have been revisited and together these changes point to a reduction of around C$83mln in expected operating costs and a reduction in expected mining capital expenditures of some C$3mln. The potential to redesign the crushing and screening plant represents one of the more important opportunities to further reduce capital and operating costs Lydian told investors. An alternative route and configuration of the conveyor belt is also being considered. 'This programme is an important step toward ensuring maximum project economics. Much of this work will also support enhanced construction and operating conditions and further mitigate environmental and social impacts' said Howard Stevenson Lydian's president and chief executive officer. 'We expect to bring these value engineering studies to conclusion in due course and quantify our findings through an update of the Amulsar technical report" Stevenson added.
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