New high-grade zone discovered in resource extension drilling, exploration drilling extends potential southwards and results of channel sampling on undrilled outcrops to add further ounces at Tigranes
TORONTO, Ontario, November 1, 2010 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced further results from drilling and channel sampling at its Amulsar gold discovery in Armenia. Amulsar is a highsulfidationstylegoldprojectwhichcurrentlyhostsaCIMcompliantInferredCategoryResourceof1.4
Reverse circulation drill hole RCA-301 has intersected 40 meters at 5.6g/t gold in resource extension drilling on a newly identified area of higher grade gold mineralization located to the southeast of Artavasdes. This hole was drilled to test a 1km long northeast-southwest trending fault structure identified in recent mapping (see Figure in appendix). This higher grade intersection, which remains open at depth, may represent a new “feeder” zone (see press release 10th August 2010) located along the targeted fault structure. Exploration drill hole DDA-058 intersected 40 meters at 1.2g/t gold and further confirms the presence of gold mineralization to the east of the Tigranes area (see press releases 31 August and 14th September). Other significant intersections include infill drill hole DDA-056, 38 meters at 1.1g/t gold and exploration drill hole DDA-059 which intersected 29 meters at 1g/t gold outside the current resource shell in the Arshak area. RCA-302 was an exploratory drill hole located at-least 600m to the south of the resource shell (see Figure in Appendix) and although it did not intersect a long interval of greater than 1g/t gold, low-grade gold (but up to 1.7g/t over a meter) was intersected along its length for the first 80 meters. This is significant in an exploration drill hole and suggests that the gold mineralizing system at Amulsar extends southwards over a total strike distance of at-least 3km from its currently known northern limit at Erato.
The northeastern extent of Tigranes is represented by a steep outcrop of siliceous rock that is difficult to access with conventional drill rigs (see figures in Appendix). This area measures some 200 meters in strike length, is up to 150 meters wide and is contiguous with the current resource shell. Access issues and the consequent lack of drilling have precluded the area from previous resource estimates. Continuous rock-chip samples have returned encouraging gold grades from the area including 7 meters at 9.7g/t gold and 13 meters at 6.8g/t gold (see Figure in Appendix). Recent channel samples cut with a twin-blade rock-saw have also returned highly encouraging intercepts including 5.7 meters at 10.4g/t gold, 27 meters at 1.0g/t gold and 5.1 meters at 9.7g/t gold. Further channel sampling is planned so that this area may be included in the updated resource estimate planned for Q1 next year.
2 Significant new drilling intersections include (see Table in Appendix):
• DDA-056 (Artavasdes) 38 meters at 1.1g/t gold,
• DDA-058 (Tigranes east) 40 meters at 1.2 g/t gold,
• DDA-059 (Arshak) 29 meters at 1.0 g/t gold,
• DDA-062 (Artavasdes) 23.3 meters at 0.9 g/t gold,
• RCA-295 (Tigranes North) 19 meters at 1.2 g/t gold,
• RCA-301 (Artavasdes) 40 meters at 5.6 g/t gold.
“Drill hole RCA-301 amplifies the message that there are more surprises in store at Amulsar” said Tim Coughlin, Lydian’s President and CEO. “Although we can map out and follow gold-bearing fault structures at the project we still only have part of the story as higher grade zones are obviously located at certain intervals along the length of the faults. This element of surprise at Amulsar makes any indication of gold mineralization (such as that intersected in drill hole RCA-302), highly significant and worthy of follow up as higher grades can clearly be within immediate reach of lower grade material”.
About Lydian International
Lydian is a gold-focused mineral exploration and development company with expertise employing “first mover” strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and on developing its flagship Amulsar gold project in Armenia. The Amulsar group of licenses is 95% owned by Lydian’s wholly owned Armenian subsidiary (Geoteam CJSC). Lydian also has a pipeline of promising early-stage gold and base metal exploration projects in the Caucasus regions.
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 characterize emerging environments. The Company’s significant shareholders are the International Finance Corporation (IFC), a member of the World Bank Group, Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
Christopher John Bargmann, FGS(C Geol), MAusIMM, Pr.Sci.Nat; is the Qualified Person overseeing Lydian's exploration programs. Mr. Bargmann 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. More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other 3 geological data, fluctuating metal prices and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors” which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
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