Lydian International Inc (TSE:LYD) said construction of its huge Amulsar gold mine in Armenia was on schedule and budget, with 58% of initial capital now spent.
As of the end of May this year, project commitments totalled $213 mln, the company revealed.
Access roads are now complete, while site earthworks continues to be the priority.
Work is complete on the adsorption desorption refining (ADR) plant platform, the construction warehouse platform, and the heap leach facility (HLF) temporary sediment dam.
Work has kicked off on the platform for the crushing and screening plant and in other areas at higher elevations.
Machinery giant Caterpillar (NYSE:CAT) is ahead of schedule in producing the primary mine mobile equipment, and initial deliveries are expected to begin in late July.
The mining fleet for Amulsar will include, among other things, 19 Caterpillar 789D 180-tonne-capacity haul trucks, one 994 front-end loader and two 6040 hydraulic shovels. A training simulator has been purchased to train operators.
Lydian's present and chief executive Howard Stevenson told investors: "We are pleased with the progress of construction to date and look forward to achieving additional significant milestones through the summer.
"As construction continues to accelerate and employment approaches 1,300 workers later this year, we continue to enhance our safety programs and sustainability management systems to ensure the well-being of our employees, contractors, the environment and all of our stakeholders."
For the rest of 2017, Lydian says it expects to achieve the following significant milestones:
- Complete major earthworks for the HLF, mine haul road and barren rock storage facility
- Complete civils for all components of site infrastructure and equipment
- Erect buildings for the material handling system and the ADR plant
- Fabrication and delivery to site of major components of mechanical and electrical equipment
- Commence installation of mechanical and electrical equipment
- Fabrication, delivery to site and assembly of the mine mobile fleet
- Finalize biodiversity offset boundaries
- Hiring and training of staff for mine operations and the processing plant
- The cost of the Amulsar gold project has been estimated at US$369.9 million, so the project is well on its way now.
Shares added 4.84% in Toronto to stand at 32.5 cents.