First Dynasty pours Armenian gold

First Dynasty Mines (FDM-T) has joined the gold production ranks, pouring its first gold bar at the Ararat tailings project in western Armenia.

The Singapore-based company has spent US$12 million to construct a processing plant on site. The capital costs are expected to be recovered over the next four years.

Ararat has proven reserves of 12 million tonnes grading 1.1 grams gold per tonne, equivalent to 400,000 contained ounces. Approximately 1.5 million tonnes will be treated annually, for a yield of 25,000 oz. gold. At that rate, the reserves are sufficient for eight years of production.

Cash production costs at the

project are expected to average US$220 per oz.

First Dynasty operates the project through its Armenian-incorporated subsidiary. The subsidiary’s interest in Ararat is 50%, which will increase to 67% if the gold-recovery rate is 50% or less. The remaining interest in the project is held by the Armenian government.