Resource extension drilling opens up potential to the north and west and step-out drilling identifies more gold to the southeast
TORONTO, Ontario, August 31, 2010 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced further results from resource upgrade and extension drilling at its Amulsar gold discovery in Armenia. Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant Inferred Category Resource of 1.4 million ounces at 0.9g/t gold.
Reverse circulation drill-hole RCA-233 has intersected 95 meters at 1.7g/t gold from the Erato area. RCA-233 is located 40m to the south of DDA-30 (which returned 229m at 1.0g/t gold in last year’s drilling; see press release November 11, 2009) and is approximately 900m to the north of the resource envelope at Tigranes and Artavasdes. This year’s drilling at Erato has confirmed a north-south oriented fault and fracture control to gold mineralization there and also suggests the presence of a previously unknown northwest-southeast trending gold-mineralized corridor (see Figure in Appendix). Drill rigs have been repositioned to test the potential of this newly recognised corridor.
Results from step out drilling to the southeast of the Tigranes area include RCA 220 (37m @ 1.2 g/t gold) which represents a significant addition to known mineralization within reach of the current resource. Results from resource extension holes include DDA-038 (32m @ 1.0 g/t gold) and RCA 213 (22m @ 1.0 g/t gold). DDA 38 extends the resource on Artavasdes to the west, whilst RCA-213 extends gold at Tigranes towards the north. Other significant new results include resource upgrade holes RCA226(92mat1.2g/t),andDDA-039(66mat1.3g/tgold,and35mat1.1g/tgold). RCA 224 intersected 69m
@ 1.3 g/t gold and was drilled as a twin hole to DDA-035 (62m @ 1.3g/t gold; see press release August 3, 2010). Twin holes are drilled for resource estimation purposes in-order to compare results from reverse circulation and diamond drill holes. Results from RCA-224 will provide additional confidence in the updated resource estimate to be conducted following completion of the drill program later this year (see Figure in Appendix).
Significant new intersections include (see table in Appendix):
• DDA-038 (Artvasdes) 32 meters at 1.0 g/t gold,
• DDA-039 (Artvasdes) 66 meters at 1.3 g/t gold, and 35 meters at 1.1 g/t gold,
• RCA-213 (Tigranes) 22 meters at 1.0 g/t gold,
• RCA-220 (SE Tigranes ) 37 meters at 1.2 g/t gold,
Including 9m at 3.9 g/t gold
• RCA-224 (Artvasdes) 69 meters at 1.3 g/t gold,
Including 8m at 3.9 g/t gold
• RCA-226 (Tigranes) 92 meters at1.2 g/t gold,
Including 22m at 2.3 g/t gold
• RCA-233 (Erato) 95 meters at 1.7 g/t gold.
Including 28m at 3.9 g/t gold
“Long intersections of good grades at Erato and the presence of a silica-cap may imply some similarities with Artavasdes 900m to the south, where we have intersected what appears to be a highgrade
feeder zone” said Dr Tim Coughlin, Lydian’s President and CEO. “A high-grade feeder is our target at Erato, but further modeling and drilling is required before we can be sure it’s there. Step-out, resource extension and upgrade drilling has returned consistently good results and mapping and modeling has filled the pipe-line with new targets ready for drill testing”.
Lydian also announces that, due to unusual out-of-sequence processing by the contract laboratory, the results from drill holes RCA-191, 192, 193 and 194, which were released on August 3, 2010, were inadvertently re-released in the Company’s press release dated August 17, 2010. The information regarding such drill holes set out in the first release and the second release are accurate.
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 Kosovo. The two main projects are gold at Amulsar in Armenia, and zinc, lead, silver and gold at Drazhnje in Kosovo. The Amulsar group of licenses is 95% owned by Lydian’s wholly owned Armenian subsidiary (Geoteam CJSC).
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), 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.
Christopher John Bargmann, FGS(C Geol), MAusIMM, Pr.Sci.Nat; is the Qualified Person overseeing Lydian's exploration programs. Mr. Bargmann 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 website 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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