Ararat exceeds expectations

In November, First Dynasty Mines (FDM-T) produced 2,500 oz. gold equivalent from its Ararat tailings recovery project in Armenia.

The project is operating 25% above design capacity, recovering 17% more gold and running 5% below predicated cash costs, at US$210 per oz. Deeper, higher-grade tailings are now being treated and, accordingly, head grades are nearing their expected average of 1 gram per tonne.

First Dynasty holds a half-interest in the Ararat and nearby Zod gold projects, with the remainder held by the government. A planned US$35-million expansion program will increase the plant’s output to 160,000 oz. per year, with the extra feed coming from Zod (T.N.M., Dec. 7-13/98).

Though financing has yet to be arranged, construction is expected to begin next spring.