88 meters and 94 meters at 1g/t gold intersected at Erato and Artavasdes; geotechnical drilling uncovers new gold north of Tigranes
TORONTO, Ontario, September 24th, 2012. Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced results from resource conversion and step-out drilling at its Amulsar gold project in Armenia. Amulsar is a feasibility level (see press release 7th of September 2012) high-sulfidation style, heap-leach gold project with reported CIM compliant reserves and resources as indicated in Table 1 below.
Results have been received from a further 30 drill holes at Amulsar comprising primarily resource conversion and step-out drilling from the Arshak, Erato, Tigranes and Artavasdes areas (see Table and Figure 1 in Appendix).
Notable intersections include
Mineral reserves at Amulsar are commonly surrounded laterally and sometimes at depth by a halo of inferred category resources some of-which reside within the proposed pit-design and for the purpose of feasibility study (FS) modelling, have been considered as waste (see Figure 2). The Company’s 2012 drill program has focussed on infill drilling those areas of inferred category resources residing within the current FS pit-shell with the aim being to convert them to mineral reserves (see Figures 2 and 3 in Appendix). These new drill results illustrate the ongoing success of this program with drill holes RCA-459 and RCA-460 returning significant gold results from within current the FS pit and in the inferred resource category halo at Arshak (Figure 4 in Appendix).
Drill holes RCA-459 and RCA-460 also highlight the success of the ongoing resource extension program with potential new ounces being added by deeper drilling below the current base of the pit design. At the Erato area DDA-313 intersected 88 meters at 1.0 g/t and 19 meters at 1.2 g/t gold below the pit (open at depth; see Figure 5 in Appendix) and at Tigranes DDA-322 also intersected gold below the current pit design (see table in Appendix). Arshak drill holes DDA-461 (including 11 meters and 22 meters at 1.0g/t gold), RCA-462 and DDA-324 illustrate the success of the resource extension program in identifying new ounces laterally outside the FS pit-shell (see Figures 1 and 6 in Appendix).
The Company also announces that it has identified a new area of gold mineralisation by geotechnical drilling to the north of Tigranes (see Figure 1 in Appendix). Geotechnical drill hole DDAG-317 intersected 27.1 meters at 1.5g/t gold from surface (open at depth) and DDAG-309 intersected 10 meters at 1.2g/t gold from surface. Work is underway to ascertain whether this mineralisation connects with the Erato area.
“Our recent FS highlighted the attractive economics of the Amulsar project, including a $646M NPV, using a conservative $900 pit-shell and $1200 gold price” said Tim Coughlin, Lydian’s President and Chief Executive Officer. “We expect that these favourable figures will improve even in the short term if we are correct in our belief that we can quickly convert the fringe of inferred mineral resources within the current FS pit-shell to mineral reserves. This round of drill results also clearly supports our contention that gold resources at the Amulsar project remain open at depth and laterally beyond the extents of the FS pit-shell. Furthermore, the somewhat surprising intersection of significant gold grades in geotechnical drilling to the north of Tigranes reveals that there are still yet more complexities to unravel and potentially more ounces to be found at Amulsar. Recent geologic modelling implies a much stronger structural control than previously thought and the possibility of significant further depth potential and blind structural repeats of gold mineralisation” he added.
The information in this news release was compiled and reviewed by Peter Mullens, BSc (Geology), FAusIMM, Non-Executive Director of Lydian International Ltd and a qualified person as defined by National Instrument 43-101
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. Drill core is cut on-site and rock-chips are split to ensure representative sampling. Half core and remaining rock-chips are stored on-site. On-site personnel log and track all samples prior to sealing and shipping. Quality control is monitored by the insertion of blind certified standard reference materials and blanks into each sample shipment. All resource sample shipments are sealed and shipped to ALS Chemex, an independent third party. All assay work for the released results was carried out by ALS Chemex at its analytical laboratory in Rosia Montana, Romania. ALS Chemex’s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
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, in particular, developing its flagship Amulsar gold project in Armenia. 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 characterise emerging environments. The Company’s significant shareholders include the International Finance Corporation which is a member of the World Bank Group and the European Bank for Reconstruction and Development. More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
Caution regarding forward-looking information:
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterised 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 and include statements regarding the Company’s intended planned exploration. 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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Appendix; Results Table
Figure 1, Press release Drill hole location map