To: NOW who wrote (1907 ) 7/25/2013 6:43:39 PM From: Goose94 Read Replies (1) | Respond to A Possible Delay For Lydian Int'l (LYD-T) Sets Up Great Entry PointMessage 29023264 Here are some of my notes taken on Lydian’s presentation from the European Gold Forum. “The infrastructure is excellent and the government is cooperative, the nearby communities especially so. There are 115 local men being trained for working and running equipment at Amulsar, which is a God send to families in villages where men often leave to work in Siberia. The nearby villages stay intact, no relocation. Armenia’s mining law was worked out with the World Bank, which also helps finance the country’s projects. Fourteen banks have visited the site and have conducted due diligence. There is a 30% tax, which is not out of line. Mineral extraction comprises 60% of Armenia’s economic activity. The permitting process on Amulsar is advanced.” Having gone 95% through its feasibility study — including supporting site visits from the World Bank and other officials, such as Armenian — late-in-progress Lydian has been hit with an uncertainty [ A bureaucratic "resolution" below] that prompted a quick-trigger 35% downdraft in the stock price. This came one week after Lydian received local community approval and appeared to be in victory lap mode. In terms of making a speculative call on this, I would only add that by all accounts, Armenia is committed to the project, and the insertion impact zone may be a technicality. Regardless, investors are shooting first and asking questions later. Given the effort and labor put forth by Armenia, the international development community, the nearby communities and Lydian, this feels surmountable and worth a speculative high-reward bet that it will be resolved. In full disclosure, the firm is located on the Isle of Jersey (I am in Hawaii) and I have not had a conversation but offer this with the sense the stock will not stay here long. Readers can make that call to management should they choose. Here is the contact number . Any feedback would be appreciated. “However, during a government session on July 18, 2013, the Armenian government passed a resolution that modifies the area defined as the catchment basin to Lake Sevan, Armenia’s largest freshwater resource. The resolution is yet to be promulgated and is then scheduled to come into force 10 days after its promulgation. According to the text of the resolution, the borders of the catchment basin have been expanded to include the horizontal zone 3,000 metres on each side of the axis to the Vorotan-Sevan tunnel. Based on the company’s understanding of the resolution, if projected to surface, the modified catchment basin includes the company’s currently proposed location for its heap-leach processing facility. Furthermore, the resolution states that this part of the catchment basin is to be classified as the immediate impact zone to Lake Sevan. This impacts the company’s current mine layout plans as mineral processing activities are not permitted in this immediate impact zone.” The company has made inquiries with the Armenian government regarding the resolution and is seeking to better understand the impact the resolution will have on the currently established Amulsar mine layout, including permitting and community approval of that layout, development plans, and related activities such as the preparation and timing of any new feasibility study. In response to the company’s inquiries, the Government of Armenia invited Lydian to participate in a joint working group. The working group process will almost certainly result in a delay to the delivery and publication of the FS. The company understands that the working group will also concurrently review Lydian’s Environmental and Social Impact Assessment. The working group is expected to begin working within a week, with a view to reaching a conclusion in an expeditious manner.”
