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 finds further gold potential at Amulsar project in Armenia, to raise $17m
Eastern Europe-focused Lydian International (TSX: LYD) reported Monday further results from resource upgrade, extension and exploratory drilling at its Amulsar gold discovery in Armenia, drilling 186m at 1.1g/t and 85m at 1.2g/t of gold.
The results are from the Erato zone, located 900m north of the resource envelope at Amulsar, and is separated from the main Tigranes-Artavasdes area by what appears to be a sill-like porphyritic intrusion.
The last round of drilling at the Erato area in the summer identified a previously unknown northwest-southeast trending gold-mineralized corridor, which included a drill intersection of 95 metres at 1.7g/t gold.
Two further drill holes were positioned to test this corridor at Erato and have returned 85 metres averaging 1.2g/t gold and 186 metres averaging 1.1g/t gold, including 49m at 2.0g/t gold.
The company believes that further gold mineralization may be found capped and concealed beneath this intrusive body, extending from Erato 900m southwards to the current resource shell. Further drilling aimed at extending the mineralized corridor at Erato and testing the concept of capped mineralization is planned for later this month, it said.
"This is a good 'proof of concept' confirming that this year's drilling, surface mapping and 3D modeling is finally unraveling the complexity of this extensive mineralized system," said president and CEO Tim Coughlin.
In separate news, Lydian also announced today that its has entered into a financing agreement with a syndicate of investors led by Cormark Securities to raise $17.3 million for its Amulsar project.
Under the terms of the deal, it will, on a bought deal basis, issue 8.1 million common shares at a price of $2.13 per share. In addition, the company has granted the underwriters an option to purchase up to an additional 1.215 million shares at the offering price, which can be used within 30 days after the closing of the deal, for additional gross proceeds of up to approximately $2.6 million.
The deal is due to close by the end of the month, and the new funds will be used specifically for exploration drilling, metallurgical studies and pre-feasibility studies for its Amulsar property and for other gold exploration licenses.
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.
Currently, Lydian is focused on Eastern Europe and in addition to Amulsar, it also has a pipeline of early-stage gold and base metal exploration projects in the Caucasus regions.
Its significant shareholders are the International Finance Corporation, Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and the European Bank for Reconstruction and Development (EBRD).
