Mining Intelligence and News
Armenia

Kapan Mine

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Overview

Mine TypeUnderground
StatusActive
Commodities
  • Gold
  • Silver
  • Copper
  • Zinc
Mining Method
  • Longhole open stoping
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SnapshotKapan mining operation comprise of Shahumyan gold-polymetallic deposit and Kapan processing plant.

The Shahumyan mine is the second largest gold mine in Armenia. The mine consists of a series of narrow steeply dipping polymetallic veins containing gold, copper, zinc, and silver. The Mill produces two flotation concentrates - one high in gold, copper, and silver, the second a zinc concentrate containing payable gold and silver credits.

Owners

SourceSource
CompanyInterestOwnership
Gold Mining Company LLC 100 % Indirect
On the 15 August 2023 the Chaarat Gold Holdings entered into a binding conditional sale and purchase agreement with Gold Mining Company LLC to sell its 100% owned Armenian subsidiary, Chaarat Kapan, which owns the Kapan mining operation.

The sale was completed on 30 September 2023.

Contractors

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Deposit type

  • Vein / narrow vein
  • 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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Comminution

Crushers and Mills

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Processing

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Production

The process plant accepts additional ore feed from a third-party operation, utilizing excess capacity. During 2022, Chaarat Gold's own ore treated was 634,883 t, and third-party ore treated was 130,111 t.
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

Metrics20232022202120202019201820172016
Annual ore mining capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Annual processing capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe750 kt
Ore tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe678,382 t637 kt527 kt287 kt
Tonnes processed  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe733,860 t636 kt530 kt293 kt
Daily processing capacity  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Annual mining capacity  ....  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  

Financials

Units202220212020201920182017
Capital expenditures M USD  ....  Subscribe  ....  Subscribe 7   24  
Revenue M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 68.1   61   66  
Operating Income M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe
Pre-tax Income M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe -0.7  
After-tax Income M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe -2.2  
EBITDA M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 8.6   11   20  

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jul 12, 2024

EmployeesYear
...... Subscription required 2017
...... Subscription required 2016

Aerial view:

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