Drill Programme Planned to Test Bulk Tonnage Potential and Define Gold Resource
TORONTO, Canada, March 10th, 2008 – Lydian International Ltd. (TSX:LYD), a diversified U.K. mineral exploration and development company, today announced it has signed a 20,000 metre combined reverse circulation and diamond drilling contract to test the bulk tonnage potential and define a gold resource at its Amulsar project in Armenia. The programme will commence in April of 2008 after the snow retreats and is expected to be complete by the end of October 2008.
Amulsar is a high-sulphidation type epithermal gold project located in central Armenia. The gold bearing potential of the project was identified by Lydian in mid-2006. Rockchip sampling and soil geochemical analyses reveal that the mineralised system extends over a strike length of some 3.5km and is at least 500 metres wide. Scout drilling has revealed that higher grade gold is hosted in steeply dipping oxidised breccia bodies, and that lower grade gold is hosted in shallowly dipping oxidised structures that surround the higher grade breccia bodies. Previously reported drilling results have been recalculated to reflect a bulk tonnage mining scenario in which the breccia bodies and bedding parallel bodies are combined. In this case best intersections are DDA-004, 53m at 2.6g/t gold and DDA-003 51m at 1.02g/t gold (Table 1).
“Planning for this drill programme has been underway for several months now, camp infrastructure including an on-site sample preparation laboratory has been procured and will be installed on the project just as soon as the snow allows us access,” said Tim Coughlin, President and CEO of Lydian. “The drill rigs arrive in the middle of March and we are expecting the first drill results some time in April”
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 former Soviet Armenia and in emerging Kosovo.
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 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 (NSYE & ASX:NEMS, TSX:NMC), in the Caucasus region.
Lydian’s two largest shareholders are Newmont Mineral Holdings B.V., and International Finance Corporation (part of the World Bank Group). Lydian’s web site is www.lydianinternational.co.uk where more information can be found.
Dr. Tim Coughlin, MAusIMM, is the Qualified Person overseeing Lydian's exploration programmes and 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.
For more information, please contact:
President and CEO
+44 7717 204300
VP Investor Relations
+416 599-7363 x 2404
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company’s future prospects. This press release contains statements about our future financial condition, results of operations and business. These are “forward-looking” because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.