Lydian Revisits Amulsar Mine Layout as Resource Potential Grows
November 20 2012 - 7:30AM
Marketwired
Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a
gold-focused mineral exploration and development company, today
announced that it is further considering mine layout alternatives
at its Amulsar gold deposit in Armenia. Recent drilling has
identified new gold mineralization and extensions to known gold
mineralization which together have provided a greater insight into
the underlying resource potential and thus the probable extent and
overall capacity of the Amulsar gold deposit. These gold
mineralized extensions may impact on the mine plan and layout as
described in the Company's Feasibility Study (see press release 7
September 2012). Amulsar is a feasibility level high-sulfidation
style, heap-leach gold project with reported CIM compliant Proven
and Probable reserves of 2.29M Oz Gold at 0.8 g/t and 9.98M Oz
Silver at 3.3 g/t and a resource of 0.2M Oz Gold at 1.0 g/t in
Measured and Indicated category and 1.1M Oz Gold at 0.9 g/t in
Inferred category.
The current Amulsar mine plan and layout was developed to
accommodate the known extent and estimated extensions of gold
mineralization at the project and in-part to satisfy a production
target of March 2015 which was imposed under a Mining License
granted to the Company in 2009. As previously announced, a new
Mining License was granted to the Company on September 26 2012.
This Mining License supersedes the 2009 license, allows a further
four year construction period and thus provides scope to better
scale and further optimize the mining operation.
Drill results this year (see press releases August 21, September
24, October 23 and November 20) imply new resource potential both
laterally and below the currently proposed pit-shells. Drill
results from the Erato area and to the northeast of Tigranes in
particular highlight potential up to 600m to the east of the
pit-shells and in the currently proposed locations of the crushing
and conveying facilities. Potential for further resources will also
impact on the stacking capacities of proposed heap leach
facilities.
As a result of the new Mining License, the new resource
potential and the possible encroachment of the resource on the
current mine layout, the Company is in the process of re-examining
its original mine design and carrying out additional mine planning
in order to ensure that its final development plans maximize the
value of its Amulsar Project.
Accordingly, the Company has retained SNC-Lavalin of Perth
Australia to complete a new feasibility-level (+/-15% cost
contingency) crusher trade-off study. This study will be complete
before end 2012. Preliminary findings imply that the installation
of a single primary gyratory cone crusher, versus the currently
planned staged installation of two primary jaw crushers, would
reduce the overall crushing plant foot-print and the consequent
impact on resource expansion. A single primary gyratory cone
crusher would also likely allow for the operation to quickly
achieve an ore mining rate of 10Mtpa and reduce initial earthworks,
blasting and oversize re-handling costs.
In addition, with the potential for the definition of further
leachable ore, Golder Associates Inc. of Denver, Colorado recently
updated its heap leach site alternatives analysis and has
identified additional potential valley-fill and conventional heap
leach pad locations that may host more capacity than the currently
permitted location.
The Company is currently working with the Armenian authorities
on assessing various mine-design options that better reflect the
underlying resource potential, the ultimate crushing and stacking
capacity and fully satisfy the environmental and social obligations
of the Amulsar gold deposit. The Armenian Government authorities
have indicated their desire to work closely with the Company to
ensure that any proposed improvements meet all regulatory
requirements and do not in any way delay the planned production
time-line.
CEO and President of Lydian International, Dr. Tim Coughlin says
"Amulsar and particularly the Erato area appear to be undergoing
something of a growth-spurt. It makes sense now to seriously
consider the results of the trade-off and site alternative studies
and consider new means of extracting maximum value with the usual
full and due consideration for the local community and the
environment. Our intention is to ensure that these additional
design studies do not impact the development time-line which
includes commencing construction in 2013."
The information in this news release was compiled and reviewed
by Dr Tim Coughlin, BSc (Geology), MSC (Exploration and Mining),
PhD (Structural Geology), FAusIMM; CEO and President of Lydian
International Ltd and a qualified person as defined by National
Instrument 43-101.
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 regarding the Company's
intended planned exploration. 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.
Contacts: Lydian International Ltd. Donna Pugsley Investor
Relations +44 (0)1534 715473 or +44 (0)7797
742800info@lydianinternational.co.uk
www.lydianinternational.co.uk