TORONTO, ONTARIO--(Marketwire - Mar 5, 2013) - Lydian International Ltd. (LYD.TO) ("Lydian" or "the Company"), a gold-focused mineral exploration and development company, today announces an independent updated mineral resource estimate for its Amulsar gold project in Armenia, prepared by AMC Consultants (UK) Limited ("AMC"). Amulsar is a high-sulfidation style gold project discovered by Lydian in 2006.
The Amulsar resource update conforms with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and mineral resources are classified according to "CIM Definition Standards for Mineral Resources and Mineral Reserves" (December, 2005). At a cut-off grade of 0.35 grams per tonne gold, the mineral resources are estimated at 52.4 Mt at 1.05 g/t Au (1.77 million ounces) of Measured category resources, 18.1 Mt at 1.02 g/t Au (0.59 million ounces) of Indicated category resources and 58.0 Mt at 0.93 g/t Au (1.73 million ounces) of Inferred category resources from the contiguous Tigranes, Artavasdes, Arshak areas and from the Erato area. A summary of the mineral resource update using various cut-offs is presented in Table 1. An independent updated silver resource is also being prepared, which the Company expects will be completed before the end of March 2013.
TABLE 1 Gold Mineral Resource
|Gold Cutoff Grade, g/t||Combined Measured & Indicated Mineral Resource||Inferred Mineral Resource|
|Tonnes (x 1000)||Gold, g/t||Contained Gold Ounces||Tonnes (x 1000)||Gold, g/t||Contained Gold Ounces|
|1. The effective date of the resource estimate is March 4, 2013.|
|2. A cut-off grade of 0.30 g/t gold has been applied to all resources, based on a gold price of US$1200 per troy ounce of gold and assuming an open pit mining scenario.|
|3. Figures have been rounded to the appropriate level of precision for the reporting of Indicated and Inferred resources in the upper and lower volcanic units.|
|4. Due to rounding, some columns or rows may not compute exactly as shown.|
|5. Mineral Resources in this resource statement are not Mineral Reserves and do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Mineral Reserves have been previously reported for this project using a prior mineral resource statement.|
This updated mineral resource estimate has been developed from an additional 19,867 meters of combined diamond and reverse circulation drilling, which was completed in 2012 (for a total of 109,650 meters). Resource estimation has been completed using the geostatistical technique, Localized Multiple Indicator Kriging ("Localised MIK"). Localised MIK is a form of Multiple Indicator Kriging ("MIK") where the grades are ''mapped'' directly into selective mining unit ("SMU") sized blocks from a MIK estimate. Specific gravity measurements were averaged, with average values applied to appropriate block model units for the estimation of mineral resources.
The CIM requirement for "reasonable prospects for economic extraction" generally implies that quantity and grade estimates meet certain economic thresholds and that mineral resources are reported at an appropriate cut-off grade, taking into account extraction scenarios and processing recovery. AMC considers that the Amulsar gold project is amenable to open pit extraction. To assist with determining a reasonable reporting cut-off grade, AMC considered economic parameters, including a gold price assumption of US$1200/oz gold, based on which AMC considers that resource blocks above a grade of 0.30g/t Au show reasonable prospects for economic extraction from an open pit mine, and can therefore be reported as a mineral resource.
The Company''s newly developed 3D geology model has played an important role in producing what management believes to be a rigorous and well-constrained mineral resource estimate based on host-lithology, alteration, and structural controls to gold mineralisation at Amulsar. The mineralization remains open, with the possibility to find additional gold resources particularly towards the north, east and to depth at Erato, Tigranes and Artavasdes, whereas Arshak remains open along strike towards the south-east.
"This is another milestone in Amulsar''s development into what we believe will be a high-margin, world-class and exemplary gold mine," said Tim Coughlin, Lydian''s President and CEO. "The new geological model has helped better constrain grade boundaries and continuity and together with this resource update we have highlighted several areas interpreted to host further and significant gold resource potential. This resource will be used to estimate reserves in an updated Feasibility Study scheduled for release in July of this year. A further resource update based on additional drilling throughout 2013 is scheduled for release in quarter one of next year."
The updated mineral resource estimate for the Amulsar gold project was prepared by Mr. G. David Keller, P.Geo. (APGO#1235) of AMC, a "qualified person", as defined in National Instrument 43-101. Mr. Keller has reviewed and approved the contents of this news release with respect to the mineral resource estimates.
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. Drill core is cut on-site and rock-chips are split to ensure representative sampling. Half core and remaining rock-chips are stored on-site. On-site personnel log and track all samples prior to sealing and shipping. Quality control is monitored by the insertion of blind certified standard reference materials and blanks into each sample shipment. All resource sample shipments are sealed and shipped to ALS Chemex, an independent third party. All assay work for the released results was carried out by ALS Chemex at its analytical laboratory in Rosia Montana, Romania. ALS Chemex''s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. More information can be found on Lydian''s web site at www.lydianinternational.co.uk.
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, in particular, developing its flagship Amulsar gold project in Armenia. 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 characterise emerging environments. The Company''s significant shareholders include the International Finance Corporation which is a member of the World Bank Group and the European Bank for Reconstruction and Development. More information can be found on Lydian''s web site at www.lydianinternational.co.uk.
Caution regarding forward-looking information:
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterised 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 and include statements with respect to the Company''s operations, exploration and development plans, expansion plans, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, estimates, expectations, forecasts, objectives, predictions and projections of the future. 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, permitting and licensing 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.