On July 18, the government passed a resolution, which has yet to come into force, which would modify the so called "catchment basin" of Lake Sevan - Armenia's largest freshwater resource.
Lydian believes the area, where, under the resolution, mineral processing would not be allowed, includes its planned site for a heap leach facility.
In response to Lydian's enquiries, the firm said it has been invited to participate in a joint working group with the government.
This will almost certainly result in a delay in the delivery and publication of the firm's revised feasibility study -a document aimed at facilitating financing of Amulsar.
"The working group is expected to begin working within a week, with a view to reaching a conclusion in an expeditious manner," the firm said in a statement.
"Pending further clarity on the impact of the resolution and the conclusions of the working group, Lydian is continuing to advance all of its exploration and development activities in Armenia.
"The company has completed 30% of its planned 20,000 meter drilling program at Amulsar this year and continues to achieve important community support milestones."
The feasibility study was targeted to be delivered in the third quarter of 2013 and Lydian said the report was now 95% complete.
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