CIM compliant resource estimate of 1.1 million ounces in Indicated and 1.4 million ounces in Inferred categories
TORONTO, Ontario, April 05, 2011 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced an updated resource estimate for its Amulsar gold project in Armenia. Amulsar is a high-sulfidation style gold project discovered by Lydian geologists in 2006. The updated resource comprises 32.4 Mt at 1.1 g/t Au (1.1 million ounces) of Indicated Category resources and 48.3 Mt at 0.9 g/t Au (1.4 million ounces) of Inferred Category resources (see Table 1). Galen White, Principal Geologist of CSA Global prepared the mineral resource estimate in accordance with CIM guidelines.
This most recent resource estimate is developed from an additional 24,000 meters of drilling (for a total of 46,000 meters) which has significantly enhanced the Company’s understanding of the geological controls at the Amulsar gold project. Closer spaced and better directed resource drilling at Amulsar has revealed that generally higher-grade, sub-vertical faults, fractures and breccia-veins (“feeders”) are more extensive than previously thought and in terms of total contained ounces tend to dominate over lower-grade, shallow-dipping strata-bound style gold mineralization. Strata-bound style mineralization hosts the bulk of the contained tonnage at Amulsar and is controlled primarily by sub-horizontal breccia bodies, contacts with intrusive sills and other stratigraphic contacts.
This resource update comprises a total of 2.0 million ounces gold from the contiguous Tigranes and Artavasdes areas and the first estimate of 0.5 million ounces in Inferred category resources from the Erato prospect which is located approximately 900 meters to the north of Tigranes-Artavasdes (see Table 2).
“This new resource update is a consequence of our significantly evolved understanding of the geological controls at the Amulsar project” said Tim Coughlin, Lydian’s President and CEO. “Infill and resource extension drilling comprised approximately 75% of the total meters drilled at Amulsar last year and resulted in the identification and delineation of a network of higher grade fault-controlled breccia-vein or “feeder” type structures which extend from surface for at-least 150 vertical meters and so-far remain open at depth. The resource remains open in all directions and this enhanced understanding means that areas in which new ounces can be found are obvious, as either lateral or vertical extensions of currently outlined faults, fractures or breccia-veins. We plan to drill a further 30,000 meters at Amulsar this year in a combination of resource upgrade, extension and exploratory drilling. Weather permitting we are hoping to commence drilling in May and no-doubt we are in for another exciting year at Amulsar”
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 wholly owned by Lydian’s 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 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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