Lydian Reports Bulk Surface Sample and Further Drill Core Metallurgical Results from Kappes, Cassiday & Associates
Feasibility Level Metallurgical Testing Shows Increased Gold Recoveries and Reduced Reagent Consumption Rates for the Tigranes and Artavasdes DepositsTORONTO, ONTARIO -- (Marketwire) -- 03/06/12 -- Lydian International Ltd. (TSX: LYD) ('Lydian' or 'the Company'), a gold-focused mineral exploration and development company, today announced further metallurgical results from its Amulsar gold project in Armenia. Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant Indicated Resource of 2.1 million ounces at 0.98g/t gold, plus an Inferred Resource of 1.1 million ounces at 0.92g/t gold (0.4g/t gold cut-off grade).
As part of the metallurgical testwork requirements for the Amulsar Full Feasibility Study (FFS), testwork was carried out at Kappes, Cassiday & Associates (KCA) on representative bulk samples (surface outcrop), half core reserve samples, and whole core generated from specific metallurgical PQ-diameter diamond drill-holes.
The KCA testwork program included fine intermittent bottle roll cyanidation and column leach tests. Results of the column leach test results for gold and silver are detailed in Tables 1 and 2.
Table 1: Column Leach Test Results - Gold
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Calculated
KCA KCA Crush Head, Extracted,
Composite Test Material Size, gms gms
No. No. Type Description mm Au/MT Au/MT
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61723 TM-1 thru TM-
61738 Bulk 18 12.5 4.500 4.078
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61724 ATM-1 thru
61741 Bulk ATM-26 12.5 0.674 0.602
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61730 1/2 Split
61744 Core DDA-018 12.5 0.556 0.523
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61731 1/2 Split DDA-022 and
61747 Core DDA-055 12.5 0.498 0.459
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61732 1/2 Split
61750 Core DDA-033 12.5 0.950 0.880
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61733 1/2 Split DDA-035 and
61753 Core DDA-055 12.5 1.127 1.027
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61734 1/2 Split DDA-046 and
61756 Core DDA-076 12.5 1.638 1.587
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61735 1/2 Split
61759 Core DDA-055 12.5 1.177 1.134
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61736 1/2 Split
61762 Core DDA-076 12.5 2.442 2.365
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61768 61775 Whole Core DDAM-130 12.5 1.274 1.171
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61769 61778 Whole Core DDAM-137 12.5 1.600 1.467
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61770 61781 Whole Core DDAM-140 12.5 --(i) 1.166
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61771 61784 Whole Core DDAM-148 12.5 0.757 0.676
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61772 61787 Whole Core DDAM-169 12.5 0.453 0.418
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61773 61790 Whole Core DDAM-174 12.5 --(i) 0.612
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Weighted
Avg.
Tail Calculated Addition
KCA Screen, Tail p80 Days Consumption Hydrated
Composite gms Extracted, Size, of NaCN, Lime,
No. Au/MT % Au mm Leach kg/MT kg/MT
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61723 0.422 91% 9.60 75 0.34 1.51
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61724 0.072 89% 9.15 75 0.12 1.00
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61730 0.023 96% 9.27 70 0.18 2.03
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61731 0.039 92% 9.44 70 0.17 1.99
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61732 0.070 93% 9.30 70 0.15 2.45
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61733 0.100 91% 9.22 70 0.22 2.50
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61734 0.051 97% 8.76 70 0.32 3.08
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61735 0.043 96% 9.29 70 0.18 2.01
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61736 0.077 97% 8.69 70 0.23 1.49
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61768 0.103 92% 9.34 60 0.14 2.02
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61769 less than
0.133 92% 9.58 60 0.05 2.00
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61770 --(i) --(i) --(i) 60 (i)0.17 (i)2.00
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61771 less than
0.081 89% 8.73 60 0.05 2.01
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61772 0.035 92% 9.70 60 0.17 2.00
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61773 --(i) --(i) --(i) 60 (i)0.29 (i)2.00
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(i)Note: Values unavailable/estimated due to detox test work
Table 2: Column Leach Test Results - Silver
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Calculated
KCA KCA Crush Head,
Composite Test Material Size, gms Extracted,
No. No. Type Description mm Ag/MT gms Ag/MT
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61723 TM-1 thru TM-
61738 Bulk 18 12.5 8.72 0.44
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61724 ATM-1 thru
61741 Bulk ATM-26 12.5 4.11 1.96
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61730 1/2 Split
61744 Core DDA-018 12.5 0.52 0.18
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61731 1/2 Split DDA-022 and
61747 Core DDA-055 12.5 1.21 0.52
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61732 1/2 Split
61750 Core DDA-033 12.5 0.76 0.17
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61733 1/2 Split DDA-035 and
61753 Core DDA-055 12.5 13.21 4.83
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61734 1/2 Split DDA-046 and
61756 Core DDA-076 12.5 1.30 0.95
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61735 1/2 Split
61759 Core DDA-055 12.5 1.44 0.69
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61736 1/2 Split
61762 Core DDA-076 12.5 0.47 0.14
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61768 61775 Whole Core DDAM-130 12.5 1.35 0.27
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61769 61778 Whole Core DDAM-137 12.5 1.16 0.10
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61770 61781 Whole Core DDAM-140 12.5 --(i) 0.40
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61771 61784 Whole Core DDAM-148 12.5 3.91 0.32
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61772 61787 Whole Core DDAM-169 12.5 8.90 8.30
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61773 61790 Whole Core DDAM-174 12.5 --(i) 1.22
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Weighted
Avg. Calculated Addition
KCA Tail Tail p80 Days Consumption Hydrated
Composite Screen, Extracted, Size, of NaCN, Lime,
No. gms Ag/MT % Ag mm Leach kg/MT kg/MT
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61723 8.28 5% 9.60 75 0.34 1.51
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61724 2.15 48% 9.15 75 0.12 1.00
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61730 0.34 34% 9.27 70 0.18 2.03
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61731 0.69 43% 9.44 70 0.17 1.99
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61732 0.59 22% 9.30 70 0.15 2.45
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61733 8.38 37% 9.22 70 0.22 2.50
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61734 0.35 73% 8.76 70 0.32 3.08
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61735 0.75 48% 9.29 70 0.18 2.01
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61736 0.33 30% 8.69 70 0.23 1.49
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61768 1.08 20% 9.34 60 0.14 2.02
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61769 less than
1.06 9% 9.58 60 0.05 2.00
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61770 --(i) --(i) --(i) 60 (i)0.17 (i)2.00
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61771 less than
3.59 8% 8.73 60 0.05 2.01
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61772 0.60 93% 9.70 60 0.17 2.00
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61773 --(i) --(i) --(i) 60 (i)0.29 (i)2.00
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(i)Note: Values unavailable/estimated due to detox test work
Table 1 shows that high leach recoveries can be obtained over a range of gold head grades; 0.453g/t gold to 4.5g/t gold. The silver leach recoveries are variable due to the silver mineralization at Amulsar which is fine grained, and requires further liberation.
The column leach tests also exhibit rapid leach kinetics (see leach curves in Appendices). Based on these laboratory leach cycle times an overall leach cycle of 110 days will be used in the final full scale design.
The average cyanide and lime consumption rates were 0.20kg/t and 2.01kg/t respectively. As a result of optimizing the cyanide dosage addition, cyanide consumption rates have decreased relative to the column leach tests conducted at Wardell Armstrong International (average 0.47kg/t).
Typically laboratory column leach test recoveries are corrected to take into account metal losses on the sides of the heap, and inefficiencies arising from percolation within the heap. The standard industry correction factor, for gold, ranges from 2-5%. The average gold leach recoveries from the column leach test results have been corrected by deducting 5% to take into account full-scale leach performance. Table 3 shows the final recoveries to dore taking into account CIL and gold room losses.
Table 3: Gold and Silver Recoveries to Dore
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Deposit Tigranes Artavasdes Erato(i)
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%Au %Ag %Au %Ag %Au %Ag
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Corrected Leach Recovery 89.43 23.29 86.00 33.83 92.67 56.10
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CIL/Goldroom Recovery 99% 99% 99% 99% 99% 99%
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Recovery to Dore 88.53 23.05 85.14 33.50 91.74 55.54
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(i) Gold and silver recoveries calculated based on test work completed by
WAI on a master composite sample.
The individual deposit gold recovery to dore values will be used in the planned Whittle optimization runs and the Feasibility financials.
'The KCA metallurgical results once-again demonstrate the amenability of ore to processing by heap leach technology. The results will further enhance the projects Feasibility stage financials given that a recovery of 85% only was used for the PEA level study last year,' said Tim Coughlin, Lydian's President and CEO. 'Higher recoveries, coupled with the reduced cyanide consumption, will also result in lower operating costs for the project.'
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 on developing its flagship Amulsar gold project in Armenia. The current resource at Amulsar comprises of 68.2 Mt at 1.0 g/t Au (2.1 million ounces) of Indicated Category resources and 36.1 Mt at 0.9 g/t Au (1.1 million ounces) of Inferred Category resources based on a 0.40 g/t gold cutoff grade. The Amulsar group of licenses is wholly owned by Lydian's Armenian subsidiary (Geoteam CJSC). 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 characterize emerging environments. The Company's significant shareholders include the International Finance Corporation (IFC) which is a member of the World Bank Group and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian's web site at www.lydianinternational.co.uk.
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 web site at www.lydianinternational.co.uk.
Gary Anthony Patrick, BSc (Chemistry/Extractive Metallurgy), MAusIMM CP; is the Qualified Person overseeing Lydian's metallurgical testwork programs. Mr. Patrick 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 web site at www.lydianinternational.co.uk.
Forward Looking Statement
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.
APPENDICES FIGURES
To view 'Figure 1: Bulk Composite Samples', please visit the following link: http://media3.marketwire.com/docs/lyd0305_append1.pdf.
To view 'Figure 2: Half Core Composites', please visit the following link: http://media3.marketwire.com/docs/lyd0305_append2.pdf.
To view 'Figure 3: Whole Core Composites', please visit the following link: http://media3.marketwire.com/docs/lyd0305_append3.pdf.
Contacts:
Lydian International Ltd.
Lucy Fowler
Investor Relations Manager
+44 (0)1534 715472
+44 (0)7829 848420
info@lydianinternational.co.uk