Lydian shares spike on Amulsar gold results

Vancouver – Lydian International (LYD-T) has pulled significant gold hits as part of a resource-upgrade drill program on its Amulsar project in Armenia.

The company has been drilling to track and connect higher-grade zones that were isolated in earlier resource estimates as well as to extend the resource. A March estimate outlined 49.6 million inferred tonnes grading 0.9 gram gold per tonne for 1.4 million contained oz.

The latest reverse-circulation results include infill hole 195 on the Artavasdes area that hit 84 metres grading 4.9 grams gold from 83 metres and ended in mineralization.

Step-out hole 198 cut 51 metres averaging 2.3 grams gold from 98 metres on the northwest edge of the Tigranes area and hole 185 hit 12 metres carrying 3 grams gold from 37 metres in the same area.

The results were enough to boost the company’s stock price up 44¢ or 32.6% to $1.79 for a new all-time high. The company was trading at under 70¢ in early March and as low a 40¢ a year ago.

Lydrian president and chief executive Dr. Tim Coughlin said in a statement that the drill program has been successful and is progressing well.

“Lydian’s geologists have now identified at least three linear and curvilinear higher-grade zones, all of which remain open along strike and at depth beyond the current resource envelope,” said Coughlin. “Drill holes to follow these higher-grade zones have been planned and will ensure that they form key components of future resource-upgrade work.”

The company released the latest results only days after releasing the first round of results from the 16,000-metre 2010 drill program.

The earlier results, also aimed at upgrading the resource, included 34 metres grading 1 gram gold, 112 metres grading 1 gram gold and 51 metres averaging 1.8 grams gold.

Lydian took back 95% control of the project earlier this year from joint venture partner Newmont Mining (NMC-T, NEM-N). Newmont had become involved in the project in 2006 shortly after Lydian discovered the project in 2005. The company received 3 million Amulsar shares and will receive US$15 million in instalments as well as certain payments related to production.

The company closed a $10-million financing in April, officering 13.7 million shares at 73¢ each. Lydian currently has 78.5 million shares outstanding.