Mining Intelligence and News
Armenia

Kapan Mine

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Summary

Mine TypeUnderground
StatusActive
Commodities
  • Gold
  • Silver
  • Copper
  • Zinc
Mining Method
  • Longhole open stoping
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SnapshotKapan comprises the Shahumyan (Kapan) gold-polymetallic deposit and the Kapan processing plant.

Shahumyan is an underground sulphide polymetallic mine and is the second-largest gold mine in Armenia.

The mill produces two flotation concentrates - one high in gold, copper, and silver, the second a zinc concentrate containing payable gold and silver credits.

Kapan intends to increase the productivity of its beneficiation plant to design capacity, as well as reconstruct Geghanush tailing dump.

The first public hearing on the preliminary application for the environmental impact assessment of this initiative is scheduled for July 3, 2025.

The mine is currently planned to be operational until 2027. It is planned to change the development model of Geghanush tailing dump from June 2028, which will allow ensuring sufficient tailings storage capacity for the plant until 2038.

After the sale of the mine on Sept 30, 2023, production data has not been publicly available.

Owners

SourceSource
CompanyInterestOwnership
Gold Mining Company LLC 100 % Indirect
Kapan Mining and Processing Company CJSC (operator) 100 % Direct
On September 29, 2023, Chaarat Gold International Limited sold the Chaarat Kapan CJSC’s shares, which owns and operate the Kapan mining operation, to Gold Mining Company LLC.

The Chaarat Kapan CJSC was renamed to Kapan Mining and Processing Company CJSC on October 6, 2023.

Contractors

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Deposit type

  • Vein / narrow vein
  • Hydrothermal
  • Breccia pipe / Stockwork

Summary:

In the Kapan mining district, mineralisation dominantly occurs as two styles – as chalcopyritepyrite veins and stockworks and poly-metallic vein systems hosted by a volcano- sedimentary rock sequence.

The Shahumyan deposit exhibits numerous syn-volcanic dykes and sills of andesitic to gabbroic composition. Such intrusions are pre-mineralisation. Pre-mineralisation dykes often have mineralised contacts and are always subject to propylitic alteration or higher grade (typically within contacts of veins or major structures).

At Shahumyan mineralisation is hosted by a suite of sub-parallel veins, the current interpretation of the deposit includes in excess of a hundred veins. In many cases the continuity of these veins is yet to be established and future drilling will be important to validate the current model. Regardless, development along and across the vein system has confirmed the prevalence of approximate east-west strikes and steep dips of the veins.

Hydrothermal-altered breccia units are also notable within the deposit makeup. Such breccias are generally found on the eastern flank of the deposit and contain polymictic clasts (andesite, basalt, dacite) within a sulphide rich matrix. Mineralised clasts can be found which are thought to have occurred due to precipitation of sulphides within vesicular lithologies.

Mineralisation within the Shahumyan deposit is characterized by narrow veins (0.2 – 2.0 m), steeply dipping and striking approximately east-west that host a polymetallic (Cu-Zn-Pb-AuAg) mineral assemblage. Veins are often found in networks and “zones” that may be shadowed by a wide zone of argillic alteration and disseminated mineralisation. Such zones can be as wide as 25 m (for example vein 5) but typically are 10-15 m wide and appear most common in higher elevations within the deposit.

Mineralisation is primarily semi-massive to massive sphalerite, pyrite, chalcopyrite, galena and bornite and occasionally, found with the latter mineral assemblage of tennantite, tetrahedrite, bornite, enargite, chalcocite, covellite, Pb, Au, Ag, Bi tellurides and native gold and silver (recorded during petrographic analysis). Gangue minerals present are typically quartz, calcite, gypsum, anhydrite and rhodochrosite. Veins exhibit a variety of textures which relate to the numerous stages of mineralisation and tectonism that have occurred.

According to Tate (2012) the mineralogy, scale and distribution of veins and alteration are consistent with the upper parts of a large porphyry style hydrothermal system with the Shahumyan vein system representing a basement carbonate zone within the system. The Centralni stockworks represent the lower transitional parts of a high sulphidation epithermal zone within the porphyry hydrothermal system.

Reserves

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Mining Methods

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Heavy Mobile Equipment

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Comminution

Crushers and Mills

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Processing

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Commodity Production

2023: On 30 September 2023 Kapan was sold to Gold Mining Company LLC. Operational results in the first nine months of 2023: Gold Equivalent production - 29.7 koz; Tonnes mined - 396,086 t; Tonnes processed - 516,049 t.

As a result, the production data for the entire year 2023 is considered estimated.

2024: In previous years (2022-2023), in addition to its own processing of concentrates, the Kapan also processed third-party suppliers' ore into concentrate and sold it to customers. Since 2024, Kapan sells only its own concentrate, providing ore processing services to third-party suppliers.
CommodityUnits20232022202120202019201820172016
Gold Equivalent koz  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe605150
Gold koz  ....  Subscribe  ....  Subscribe  ....  Subscribe33282814
Silver koz  ....  Subscribe  ....  Subscribe  ....  Subscribe5570.4500300
Copper M lbs  ....  Subscribe  ....  Subscribe  ....  Subscribe3.83.32.91.3
Zinc M lbs  ....  Subscribe  ....  Subscribe  ....  Subscribe1412116.4
All production numbers are expressed as metal in concentrate.

Operational metrics

Metrics202420232022202120202019201820172016
Annual ore mining capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Annual processing capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe750 kt
Ore tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe678,382 t637 kt527 kt287 kt
Tonnes processed  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe733,860 t636 kt530 kt293 kt
Daily processing capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Annual mining capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe400 kt

Production Costs

CommodityUnits202220212020201920182017
Cash costs Gold Equivalent USD 987 / oz   871 / oz  
All-in sustaining costs (AISC) Gold Equivalent USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 1,040 / oz   1,131 / oz   1,292 / oz  

Mine Financials

Units20242023202220212020201920182017
Capital expenditures M USD  ....  Subscribe  ....  Subscribe 7   24  
Revenue M  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe 68.1  USD 61  USD 66  USD
Operating Income M  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Gross profit M  ....  Subscribe  ....  Subscribe
Pre-tax Income M  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe -0.7  USD
After-tax Income M  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe -2.2  USD
EBITDA M  ....  Subscribe  ....  Subscribe  ....  Subscribe 8.6  USD 11  USD 20  USD
Book Value M  ....  Subscribe  ....  Subscribe

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jul 20, 2025
....................... Subscription required ....................... Subscription required Subscription required Jul 20, 2025

Workforce

EmployeesYear
...... Subscription required 2024
...... Subscription required 2023
...... Subscription required 2022
...... Subscription required 2021
...... Subscription required 2020
...... Subscription required 2017
...... Subscription required 2016

Aerial view:

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