Step-out drilling amplifies potential for resource extensions towards the northeast at Tigranes and southeast at Arshak.
TORONTO, Ontario, August 30, 2011 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced results from further drilling at its Amulsar gold project in Armenia. Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant combined Indicated and Inferred Category Resource of 2.5 million ounces at 1.0g/t gold (1.1 million ounces at 1.1 g/t gold in the Indicated Category and 1.4 million ounces at 0.9 g/t gold in the Inferred Category).
Results have been received from a further 39 drill holes at Amulsar comprising primarily infill and step-out drilling from the Tigranes and Artavasdes areas (see Table and Figure in Appendix).
Notable intersections include:
Drill hole RCA-369 targeted northeast trending normal faults along the northwestern edge of Tigranes and intersected 98 meters at 1.5 g/t gold from surface. Nearby drill holes RCA-353 (72 meters at 1.0 g/t gold) and RCA-352 (10 meters at 1.0g/t gold and 20 meters at 1.0g/t gold) also intersected gold from surface. This now outlines a significantly larger area of near surface and proposed “starter-pit” material (see PEA filed on SEDAR August 23rd) at Tigranes which will have a further positive impact on the overall economics.
Further drilling at Tigranes is aimed at extending the resource along-strike to the northeast within immediate reach of the current pit design and filling in the gap between the bulk of the drilling and step out drill hole RCA-292 which intersected 17 meters at 1.6 g/t gold (see press release October 19th, 2010) some 500 meters away to the northeast from the resource shell. Drill holes from this area include RCA-362 (14 meters at 1.5 g/t gold), and RCA-373 (27 meters at 1.4 g/t gold). Northeast Tigranes has the potential to significantly increase the current resource and expand the pit shell down-slope thus reducing overall stripping ratio. Attaining drill-access to this area has previously presented something of a challenge due to large boulders and deep scree. This year the Company retained heavier earth moving equipment and is now able to build pads and access the area with both diamond and reverse circulation drill rigs.
Step-out drill holes RCA-370 and RCA-371 were drilled at Arshak some 100 meters east of the proposed pit-shell. Drill-hole RCA-371 intersected 19 meters at 1.0 g/t gold along what appears to be a further strand of the 1.2 kilometer long west-northwest trending Artavasdes fault. Drill hole RCA-370 targeted a subsidiary northeast trending fault to this structure but failed to intersect significant gold. Recent field mapping suggests that the strongest structural influence in the Arshak region is west-northwest trending (parallel to the ridge) and that northeast trending gold mineralization becomes less evident moving southeastwards away from Artavasdes.
Exploration drilling at Erato North (DDA-115 and DDA-117) was set-off the mapped mineralized fault zone in the area and aimed to test geophysical targets beneath barren porphyry andesite. Although both drill holes failed to intersect significant gold mineralization they confirm the model that the bulk of gold mineralization at Erato has no real geophysical signature and is related or proximal to two major fault-zones that extend southwards from the area towards Artavasdes.
“This is a further sound set of results from Amulsar” said Tim Coughlin, Lydian’s President and CEO “As drill results are returned the geologic and resource model is updated in readiness for the resource update and in order for it to be dove-tailed with the ongoing bankable feasibility study scheduled for Q1 next year. These results amplify the potential for resource extensions in the immediate vicinity of the pit-shell towards the northeast at Tigranes and southeast along the Artavasdes fault at Arshak”.
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 include the International Finance Corporation (IFC) which is a member of the World Bank Group and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
Dr Tim Coughlin, BSc, MSc (Exploration and Mining), PhD, MAusIMM; is the Qualified Person overseeing Lydian's exploration programs. 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. 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.
For further information please contact:
APPENDICES RESULTS TABLE
APPENDICES DRILLHOLE LOCATION MAP