Deep drilling at Erato intersects oxide gold mineralization 250 meters below current pit-shell (open at depth)
TORONTO, Ontario, January 14, 2013. Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced the final drill results from its 2012 drilling program at its 100% owned Amulsar gold project in Armenia. Amulsar is a feasibility stage (see press release September 7, 2012) high-sulfidation style, heap-leach gold project with reported CIM compliant Proven and Probable reserves of 2.29M Oz Gold at 0.8 g/t and 9.98M Oz Silver at 3.3 g/t and a resource of 0.2M Oz Gold at 1.0 g/t in Measured and Indicated categories and 1.1M Oz Gold at 0.9 g/t in the Inferred category.
Results have been received from the last 30 drill holes at Amulsar including infill drilling at Tigranes and Artavasdes, further step-out drilling at Arshak and deep exploration drill holes at Erato (see Table and Figures in Appendix).
Notable intersections include:
Drilling at Arshak continues to extend gold mineralization along the Amulsar ridge top towards the southeast (see Table and Figure in Appendix). Results include RCA-484 which returned 111 meters at 1.1 g/t gold including 36 meters at 2.7 g/t gold from outside the current pit-shell. RCA-486 and RCA-493 returned 35 meters at 1.8 g/t gold and 30 meters at 1.0 g/t gold respectively, approximately 100 meters southeast of the current pit-shell. Meanwhile DDA-365 drilled in-between Tigranes and Artavasdes returned 21 meters at 1.6 g/t.
At Erato deep drill hole DDA-370 returned numerous intervals of gold mineralization up to 250 meters below and to the east of the current pit-shell, including 38 meters at 1.0 g/t gold from 342 meters depth (see Table and Section in Appendix). This is the deepest hole so far drilled at Erato and shows significantly large zones of oxide gold mineralization to the end of hole at a total down-hole depth of 404.5 meters. This drill hole also indicates significant potential for the discovery of further gold mineralization at depth between Tigranes and Erato which supports predictions of a possible link between the two current pits. DDA-367 also returned gold mineralization from below the current pit-shell limits (see Section in Appendix), including 89 meters at 1.0 g/t gold from 240 meters to 329 meters depth down hole which included 22 meters at 3.2 g/t gold from 301 meters down-hole depth.
The Company has engaged AMC Consultants UK to provide a CIM compliant resource update at Amulsar. The resource update is expected to be completed before the end the first quarter of 2013. Drilling is expected to commence again in the spring of 2013, with a proposed program totalling 40,000 meters and with a particular focus on testing the deeper parts of the Amulsar gold mineralizing system.
CEO and President of Lydian International, Dr. Tim Coughlin says “Another set of impressive results from a successful drill season at Amulsar. Drilling in 2012 has reinforced our view of the overall resource potential at the project and provided us with a few pleasant surprises. Erato appears to be growing in all directions but particularly at depth and towards the Tigranes pit, whilst at Arshak we are stepping consistently southeastwards finding more gold along the ridge top. In light of our better understanding of the gold distribution, we are continuing to optimize mine layout plans, particularly in regards to crushing facilities and heap-leach capacity. 2013 is set to be an exciting year for Lydian with planned resource updates, continued work towards achieving permitting milestones, completing engineering studies and carrying out a significant drill program”.
The information in this news release was compiled and reviewed by Dr. Timothy Coughlin, BSc (Geology), MSc (Exploration and Mining), PhD (Structural Geology), FAusIMM, President and CEO 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, permitting and licensing 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
Appendix; Figure 1. Layout of reported drill holes
Cross Section A-A’ of Erato (see Figure 1) showing released 2012 drill holes
Long Section B-B’ of Erato (see Figure 1) showing released 2012 drill holes