Exploration drilling at new Orontes area intersects 44m at 1g/t gold near surface, resource extension drilling at Arshak intersects 69m at 1.1g/t gold and drilling at Tigranes extends resource potential towards the southeast.
TORONTO, Ontario, October 18, 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 32 drill holes at Amulsar comprising exploration, resource extension and infill drilling from the Orontes, Artavasdes, Arshak and southeast Tigranes areas (see Table and Figure in Appendix).
Notable intersections include:
Drill results have now been returned from exploration drilling on the lower western slopes of the Amulsar ridge at the new Orontes prospect area (see Figure in Appendix). These drill holes were aimed at following up results from exploration drill hole DDA-087 drilled earlier in the season (12 meters at 1g/t and 35 meters at 1g/t gold; see press release 6th July 2011). The Orontes area is located approximately 1 kilometer to the southwest of the current resource shell and 500 meters below the base of the current proposed pit-shell. Drill hole DDA-182 was drilled about 50 meters to the southeast of DDA-087 and intersected 44 m at 1.0g/t gold starting 3 meters from surface. DDA-177 was drilled 100 meters to the north of DDA-087 and intersected 10m at 1.0g/t gold and DDA-180 was drilled to the south-southeast of DDA-087 and intersected 9m at 1.0g/t and 15m at 1.0g/t gold. These results are a clear indication that the Orontes area represents a new and developing addition to the resource potential at Amulsar. Gold mineralization in this area is hosted in combined oxide and sulphide material suggesting that it is a deeper extension to entirely oxide mineralization located at the nearby and structurally higher Artavasdes and Arshak areas (see map in Appendix). Modeling suggests that gold mineralization in the Orontes area may be stratigraphically controlled. Further deep exploration drill holes are planned to test this model and close the gap between the Orontes area and the resource shell at Arshak and Artavasdes.
Infill drill hole RCA-419 intersected 27 m at 4.2g/t gold near the bottom of the hole and below the base of the current proposed pit (see section Figure in Appendix). This is a further clear indication that gold grades remain relatively high at depth at Amulsar and that potential exists for the underground development of deeper resources.
Drilling in the Arshak area at the southeastern limit of the current resource continues to return encouraging results both below and along strike to the southeast of the current proposed pit-shell. RCA-412 intersected 69m at 1.1g/t gold, RCA-413 intersected 21m at 1.1 g/t gold and 12m at 1.1 g/t gold and RCA-415 intersected 22 m at 1.9 g/t gold. The resource remains open at depth and towards the southeast at Arshak.
Step out drill hole DDA-173 intersected 13m at 1.0 g/t gold and 19m at 1.5 g/t gold extending resource potential towards the southeast at Tigranes.
“The Orontes area is now a new prospect area in its own right” said Tim Coughlin, Lydian’s President and CEO “Further work is required to fully understand the controls on gold mineralization there and we need to resolve just how this mineralization may extend and connect with the current resource. This is very similar to what we are trying to achieve with the Erato area. Deep drilling continues to intersect good gold grades below the current pit outline. RCA-419 is just one of several holes drilled this year that have returned significant gold grades in oxide material at depth. Drilling in the Arshak area continues to return good results and step out holes to the east of the resource continue to show that it remains open in this direction”.
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.
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APPENDICES RESULTS TABLE
APPENDICES DRILLHOLE LOCATION MAP
APPENDICES FIGURE SECTION RCA-419