www.lydianinternational.co.uk
Lydian International is a mineral exploration and development company with expertise and a proven track record in discovering and developing new gold projects in unfamiliar and frontier settings. The Company is currently focussed on developing its Amulsar gold discovery in southern Armenia. The Amulsar project was a new discovery made by Lydian in 2006 and currently hosts a global resource of 3.2M ounces after its resource update in January 2012. This resource update comprises a total of 1.7 million ounces gold in the indicated category and 0.6 million ounces gold in inferred category (using a 0.4g/t cut-off) from the contiguous Tigranes and Artavasdes areas and 0.5 million ounces gold in the indicated category and 0.4 million ounces inferred category from the Erato prospect which is located approximately 900 meters to the north of Tigranes-Artavasdes. The project remains open in all directions and is currently advancing towards Bankable Feasibility with full production due in the first half of 2014.
Lydian International identifies new gold prospect and potential resource at Amulsar project in Armenia
Mineral exploration and development company Lydian International Ltd (TSX: LYD) said step-out drilling at one of its main projects, the Amulsar gold discovery in Armenia, has identified a new prospect and potential resource that is more than worthy of further drill testing in 2010.
The company drilled a further nine reverse circulation drill holes and one diamond drill hole in the Erato and Erato north prospect areas - Erato is located just 1.5 kilometres along the mineralized ridge top to the northwest of Lydian’s current 1 million ounce inferred resource - to further test previously identified gold potential.
The diamond drill hole returned grades of 1.0 grams per tonne of gold over 229 metres, including 32 metres at 2.0 gt and 22 metres at 2.2 g/t gold. Reverse circulation drilling encountered 22 metres garding 2.7 g/t gold and 24 metres at 1.0 g/t.
“These results are a good indication that doggedness pays off” said president and CEO Tim Coughlin, “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 percent owned by Lydian’s wholly owned Armenian subsidiary Geoteam CJSC. The project is currently being explored as part of a gold and copper exploration joint venture with Newmont Mining Corp (NYSE: NEM) unit Newmont Overseas Exploration Ltd in the south Caucasus region.
Newmont has two options to increase its interest. The first is an option to earn a further 20 percent by funding the project through to feasibility; the second option allows Newmont to earn a further 10 percent by funding through to commercial production.
In September, Lydian announced the results of an NI 43-101 compliant inferred resource estimate for its 100 percent owned Drazhnje project in Kosovo, its second main project, showing 3.21 million tonnes grading 2.51 percent lead and 5.11 percent zinc. This resource estimate is preliminary and remains open immediately at depth in the Main Zone and with additional tonnage likely at depth and along strike in the Eastern Zone and at the St George and St Barbara adit areas. Further lead-zinc and oxide gold exploration potential is also evident at surface.
Lydian also has a pipeline of promising gold and base metal exploration projects in the Balkans region.
Last week, the group completed a private placement with Macquarie Bank Ltd of 3.33 million shares at C$0.60 each, raising C$2 million before expenses. It also placed a further 330,000 shares at the same price, raising approximately C$200,000 before expenses. The money will be used for continued exploration of the company's mineral properties and for general working capital purposes.
