First Dynasty Mines reports operations update

[Azat]

Zod operating update

 

TORONTO, July 30 /CNW/ - First Dynasty Mines reported today that the

geotechnical study at Zod and review of the previous feasibility study data

has been completed by SRK Consultants. The mine plan as well as the pit design

of the Zod mine were also reviewed. The revised project economics and the

capital expenditure plan have also been reviewed.

According to the review the Zod project is a marginal profit proposition

and is viable with proper planning and control provided there is complete

ownership of the controlling company.

According to the review the total ore reserves have come down from 4.3

million tons as per the feasibility study to 2.1 million tons and the grade

has reduced due to expected higher dilution from 7.4gms/ton to 5.9 gms/ton.

However the stripping ratio has come down substantially from 18.3 to 9.9.

Under the present arrangement Ararat Gold Recovery Company (AGRC), the

controlling company for all Armenian operations including Zod is held 50:50

between First Dynasty Mines and Armgold, a government company of Republic of

Armenia but with management control of First Dynasty Mines.

The Government of Armenia has already put Armgold in its list of

companies to be privatized. We are planning to start mining at Zod once the

privatization process is over.

 

MEGHRADZOR MINE

 

SRK has also reviewed the data in respect of Meghradzor mine, the

Company's other small mine in Armenia and has recommended for mining. On the

basis of the recommendation mining has been started recently and the mine is

in the process of development. We are receiving small amounts of ore now and

we expect the mine to reach full scale operations in September 2001.

http://www.newswire.ca/releases/July2001/30/c6078.html