Lydian gold reserves increased to 119.3 mn ton
Lydian International Limited announced its results for the three months ended September 30, 2019. Third Quarter 2019 and recent developments includes Illegal Blockades, the blockades continue at the Amulsar Project site, having been in place since 2018.
As a result, on March 11, 2019, two of Lydian’s subsidiaries formally notified the Government of Armenia of the existence of disputes with the Government of Armenia under the UK BIT and the Canada BIT. Starting on August 19, 2019, the Prime Minister has made repeated statements that Lydian’s access to the Amulsar Project site should be restored.
New Feasibility Study on September 16, 2019, Lydian announced the results of its Feasibility Study which shows an increase in reserves from 102.6 million tonnes to 119.3 million tonnes and an increase of 192,000 ounces in recoverable gold.
Going Concern Implications, a change in the Government of Armenia in May 2018, demonstrations and road blockades occurred sporadically throughout the country. These initial protests primarily targeted the mining sector, including the Amulsar Project.
Despite court rulings in favour of Lydian, a continuous illegal blockade at the Amulsar Project has been in place since June 22, 2018 causing construction activities to be suspended. Lydian has been dislocated from the Amulsar Project site and its access has been limited to contractor demobilization and winterization during the fourth quarter of 2018, and one day of limited Police escorted access in the second quarter of 2019.
At March 31, 2019, Lydian recognized an additional non-cash impairment loss of $28.0 million. More detailed financial and other information can be found in the Company’s unaudited interim condensed consolidated financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2019, which are available on SEDAR under the Company’s profile.
