Post by
spit64 on Jul 30, 2013 2:30am
World class deposit
Lydian is a world class deposit in Armenia with an experienced management team.
Armenia is a well function democracy and seems to be friendly to mining there GDP is a big part from mining industry.
Now is a good time to jump in in this stock for those with a big risk tolerance, because the company recently came across a permitting problem and share price took a big drop. The heap leach pad at the mining area suddenly was included in a restricted area for water protection from Lake Sevan and those that don’t like to jump in at this point before problem solved should start follow Lydian and buy when this problem are solved.
It was a Soviet era tunnel project completed in 2002 to Lake Sevan and has never been used. It would be virtually impossible for any liquids from the proposed heap leach to enter the tunnel as it lies up-drainage from the heap leach location--water doesn’t flow up hill. Anyone with even a rudimentary understanding of groundwater and gravity would recognize that the heap leach facility posed no immediate impact to the tunnel or threat to the distant Lake Sevan. How long will this problem take to solve management team think one month? Who knows with countries like this.
The government might think this is a problem for real or might have some ideas behind this resolution and so called impact zone around the heap leach pad by the way lake Sevan is 60- 70 kilometer from Lake Sevan uphill.
Let’s talk about the Amulsar project, it is a deeply oxidized high sulfidation deposit and that makes it to a low cost effective metallurgy 4,1 million ounces of gold and open in all directions with high potential for 2 million ounces more in the future. Lydian’s ongoing step-out exploration drilling keeps turning up more mineralization around the existing deposits and at depth.
The Armenian government can’t afford to screw this project up if they are competent, but with Government’s and politicians you never can be sure.
This could be a ten bagger if gold price go higher and all permits get solved quickly.