Step-out diamond drill hole transects wide interval of oxide gold mineralization from surface and adds significantly to resource potential of new prospect area
Toronto, Ontario -- November 11th, 2009 -- Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a diversified mineral exploration and development company, today announced further results from its 2009 stepoutdrill program at its Amulsar gold discoveryin Armenia.
A further nine reverse circulation drill holes and one diamond drill hole were drilled in the Erato and Erato north prospect areas to further test previously identified gold potential (see press release September 8th, 2009). The Erato prospect is located just 1.5km along the mineralized ridge top to the northwest of Lydian's current 1M ounce inferred resource (see photograph and map in Appendix). Previous drilling had intersected up to 56m at 1.2g/t gold in reverse circulation drilling. These new diamond drilling results suggest that oxide gold mineralization is controlled principally by steep to moderately dipping fractures and faults extending to at-least 250m vertical depth with higher grades (including 32m at 2.0/t gold) hosted in more densely fractured stratabound zones. Gold mineralization remains open and untested to the west and along strike to the north and south (see map and section in Appendix). Best results include;
• DDA-030 229m at 1.0 g/t gold
including 32m at 2.0 g/t gold; and
including 22m at 2.2 g/t gold
• RCA-162 22m at 2.7 g/t gold (EOH)
• RCA-161 24m at 1.0 g/t gold; and
10m at 1.0 g/t gold
• RCA-156 18m at 1.0 g/t gold
"These results are a good indication that doggedness pays off" said Dr Tim Coughlin, Lydian's President and CEO "Step-out drilling in bulk-tonnage style gold systems such as Amulsar where mineralization can be distributed and localized is hit and miss and requires focus and commitment. In the case of Erato we followed up previous results and have now identified a new prospect and potential resource that is more than worthy of further drill testing in 2010".
The Amulsar group of licenses is 95% owned by Lydian's wholly owned Armenian subsidiary (Geoteam CJSC). The project is currently being explored as part of a joint venture with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation (NYSE:NEM) ("Newmont"). The joint venture is a 50%-50% contribution. Newmont has two options to increase its interest. The first is an option to earn a further 20% by funding the project through to feasibility; the second option allows Newmont to earn a further 10% by funding through to commercial production. At commercial production Lydian is to pay back its "share" of funds plus interest, advanced by Newmont from 85% of its share of dividends and distributions.
About Lydian International
Lydian is a diversified mineral exploration and development company with expertise employing "first mover" strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe developing advanced precious and base metal assets in Armenia and in Kosovo (under UNSCR 1244). 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 elsewhere in the Balkans and 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 three largest 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.
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.