Drill results from Amulsar project in Armenia, including 46m @ 1.7 g/t gold (with 29m @ 2.5g/t gold), have confirmed gold in oxidized steep vertical structures extending to down-hole depths in excess of 140m
TORONTO, Canada, July 22nd, 2008 – Lydian International Ltd. (TSX:LYD), a diversified U.K. mineral exploration and development company, today announced results from the first 7 drill holes of its 20,000m drilling programme at the Amulsar gold discovery in Armenia. Best intersections were DDA-006 with 46m at 1.7g/t gold (including 29m at 2.5g/t gold), RCA-001 with 37m at 1.4g/t gold (including 11m at 3.1g/t gold), RCA-004 with 40m at 1.1g/t gold followed by 9m at 3.5g/t gold at the bottom of the hole (to 142m) and RCA-005 with 20m at 1.0g/t gold (see Table 1 below).
A total of 6 diamond drill holes and 17 reverse circulation drill holes have been drilled so far, results for just the first 7 holes are currently available. Drill hole locations relative to surface rock-chip geochemistry are provided in Figure 1 in Appendix.
Drill results have confirmed that higher grade gold (up to 31.2g/t gold in DDA-004) at Amulsar appears to be controlled by steep vertical structures, which in drill hole RCA004are oxidised to down-hole depths in excessof 140m. These higher grade structures arehosted in lower grade halos of silicifiedbrecciated rock or “ledges”, which are apparentin IP (induced polarisation)-geophysicsas northeast trending resistivity high’s (seeFigure 2, Appendix). Where exposed at theTigranes and Artavasdes prospects, the severtical structures are up to 1.2kmlong. At the relatively untested Erato prospect in the north of the Amulsarridge, anomalousrock-chipgeochemical results coupled with mapped IP-resistivity highs imply similar strike lengths.
Drillingto-date has been focused almost entirely on the Tigranes prospect and predominantly on 80m spaced centres. The drill spacing will now be closed in at Tigranes such that gold grades encountered inthe deeper sections of drill holes can be joined vertically with those intersected furtherup the drill string or with gold grades from saw-cutchannel samples that are being taken across poorly accessible parts of the ridge. Step-outdrilling will be conducted concurrentlyat Artavasdes and at Erato, which lies some2kmto the northwest of Tigranes (see Figure 2 in Appendix).
“Amulsar is the type of system in-which gold may be dispersed quite irregularly through various host rocks and structures,” said Tim Coughlin, Lydian’s President and CEO. “We are well into a long drill program for this year to test the bulk tonnage potential and confirm a gold resource, so we anticipate having a series of additional positive results over the next few months to work with.”
Amulsar is a high-sulphidation type epithermal gold project located in central Armenia. Lydian identified the gold bearing potential of the project in mid-2006. The Amulsar license is 95% owned by Lydian’s wholly owned Armenian subsidiary (Geoteam CJSC) and 5% owned by that Company’s local director. The project is currently being explored as part of a joint venture with Newmont Overseas Exploration Limited, a wholly owned subsidiary of Newmont Mining Corporation (NYSE & ASX: NEM; TSX: NMC). The joint venture is a 50%-50% contribution. Newmont has two options to increase its interest. The first is an option to earn a further 20% by funding the project through to feasibility; the second option allows Newmont to earn a further 10% by funding through to commercial production.
About Lydian International
Lydian is a diversified U.K. mineral exploration and development company, with expertise employing “first mover” strategies in emerging exploration environments. The Company is currently focused on Eastern Europe, exploring in the Balkan and Caucasus regions, and is developing advanced precious and base metal assets located in Armenia and in Kosovo.
The Company’s two main projects are gold at Amulsar in Armenia, and zinc, lead, silver and gold at Drazhnje in Kosovo. Lydian also has a pipeline of promising gold and base metal exploration projects in the Balkans region, and operates a 50/50 gold and copper exploration joint venture with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation (NYSE & ASX: NEM, TSX: NMC), in the Caucasus region.
Lydian’s management team has a track record of success in grassroots discovery, in acquiring and developing undervalued assets, and in building companies. Lydian has a strong social agenda and a unique understanding of the complex social and political issues that characterise emerging environments. The two largest shareholders are Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and International Finance Corporation (part of the World Bank Group). More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
Dr Tim Coughlin, MAusIMM; is the Qualified Person overseeing Lydian's exploration programmes. Dr. Coughlin has supervised the preparation of the technical information contained in this press release.
Lydian employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. All assay work for the released results was carried out by ALS Chemex analytical laboratory in Rosia Montana, Romania, in Perth Australia, or in Vancouver, BC. Please see Lydian’s web site for more information.
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