Lydian Completes Heap Leach Conceptual Study At The Amulsar Gold Discovery, Armenia

Golders consultants report conceptual modeling of heap-leach treatment facility which suggests low capital and processing costs   

TORONTO, Canada, March 31, 2009 – Lydian International Ltd. (TSX:LYD), a diversified U.K. mineral exploration and development company, today announced  results of a preliminary scoping level design study of a heap leach facility for its Amulsar gold discovery in Armenia.  The study was conducted by Golder Associates UK Limited in conjunction with KD Engineering of Tucson, Arizona.  

The study assumed a 1Moz resource and an ore grade of 1g/t with recoveries of 94% (in keeping with recent NI-43101 compliant resource estimate published 18/03/08 and results of metallurgical testing by SGS Lakefield published 13/08/08). An estimated stripping ratio of 0.64 was used for this exercise and two resource scenarios assuming i) “run-ofmine” (no crushing or screening required) and ii) required crushing and screening. Modeled Production (Table 1) and costs (Table 2 - at 2008 rates) are presented for a 1Moz resource.  Capital costs reported in the study assumed a plus or minus 40% contingency. All costs are in US-Dollars and exclude mining costs, mine hauling roads, escalation and mine and contractor camps, and were developed based on US project experience. 

310309 Results Tables

The conceptual design includes features to minimise impacts to the surrounding environment, wildlife, and groundwater.  These design components include surface water diversion systems, groundwater monitoring wells, fencing, and leak-collection and recovery systems associated with a composite liner within the entire heap leach pad facility footprint, plus an additional double composite liner system for the process ponds.  

Tim Coughlin, Lydian’s President and CEO commented: “We are pleased with the results of this preliminary analysis which suggest low capital and treatment costs at Amulsar. This is due primarily to ease of access and excellent infrastructure. The project is located adjacent to the main highway some 240km south of Armenia’s capital Yerevan. This main artery provides ready access to high-tension power lines, natural gas and water. Further metallurgical testing will be conducted this year to better ascertain recoveries and to test potential for run of mine treatment”    

Amulsar is a high-sulphidation type epithermal gold project located in central Armenia.  Lydian identified the gold bearing potential of the project in mid-2006, started initial drilling in 2007, and in 2008 completed a 13,000m drill program to test the bulk tonnage potential and estimate a gold resource. The resource is NI-43101 compliant and estimated to an inferred category of one million ounces gold. The Amulsar license is 95% owned by Lydian’s wholly owned Armenian subsidiary (Geoteam CJSC).  The project is currently being explored as part of a 50/50 joint venture with Newmont Overseas Exploration Limited, a wholly owned subsidiary of Newmont Mining Corporation (NYSE:NEM).  

About Lydian International  

Lydian is a diversified U.K. mineral exploration and development company, with expertise employing “first mover” strategies in emerging exploration environments. Currently the Company is focused on Eastern Europe developing advanced precious and base metal assets in Armenia and in Kosovo.  The two main projects are gold at Amulsar in Armenia, and zinc, lead, silver and gold at Drazhnje in Kosovo.  Lydian also has a pipeline of promising gold and base metal exploration projects in the Balkans region, and operates a 50/50 gold and copper exploration joint venture with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation in the Caucasus region.  

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 two largest shareholders are Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and International Finance Corporation (part of the World Bank Group).  More information can be found on Lydian’s web site at   

Dr Tim Coughlin, MAusIMM; is the Qualified Person overseeing Lydian's exploration programmes. 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, in Perth Australia, or in Vancouver, BC. Please see Lydian’s web site for more information.    

For more information, please contact: 

Natalia Millns               
+44 1534 747890                             

Forward-looking Information  

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company’s future prospects. This press release contains statements about our future financial condition, results of operations and business. These are “forward-looking” because we have used what we  know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations