Drilling reveals potential for further high-grade gold in northwest-southeast oriented fault-breccia structures and extends resource towards the southeast. 9 drill rigs now on-site.
Results have been received from a further 18 drill holes at Amulsar comprising primarily exploration drill holes at Erato and infill drilling from the Tigranes and Artavasdes areas (see Table and Figure in Appendix).
At Tigranes, DDA-111 was drilled towards the southwest and intersected 69 meters at 3.8g/t gold (including 32 meters at 7.9g/t gold) in an outcropping northwest trending high-grade fault-breccia structure (“feeder”). This structure cross-cuts the northeast oriented normal faults that tend to dominate in the Tigranes area. RCA-348 was also drilled towards the southwest at Tigranes and intersected 110 meters at 1.0g/t gold and 21 meters at 2.9g/t gold in another cross-cutting fault-breccia structure. Structural analyses on mineralized core intervals conducted over the winter and new detailed fault-mapping completed earlier this year have revealed that much of the higher grade gold mineralization at Amulsar is oriented northwest-southeast and parallel to an inferred caldera-margin fault structure which extends for at-least 4 kilometers from Arshak through to Erato. These new intersections and the incorporation of further cross-cutting higher grade structures will contribute significantly to the updated resource estimate at Amulsar and to the identification of further drill targets along the ridge top.
Drill holes RCA-339 through to RCA-346 were drilled towards the southeast along the southeastern extent of the current resource shell between Artavasdes and Tigranes. Intersections in this area include RCA-339; 29 meters at 1.6g/t gold, RCA-341; 26 meters at 1.0g/t gold, RCA-342; 53 meters at 1.0g/t gold and RCA-343; 33 meters at 1.0g/t gold. These drill holes extend the current resource shell (and thus the current pit shell; see Figure in Appendix) towards the southeast.
Drill hole DDA-116 targeted a complex zone of intersecting northeast-southwest oriented normal faults and northwest-southeast oriented wrench faults (caldera-margin) at Artavasdes and intersected 119 meters at 1.3g/t gold.
High Sulfidation Gold Usually Has Potential for High Grades
August 16, 2011 at 4:42 pm
Even though almost every high sulfidation epithermal gold system is exploited as a bulk tonnage deposit via open pit, it doesn’t mean these deposits are consistently low grade. Indeed, the high sulfidation system is one of a few gold deposit types that can achieve both massive tonnage and decent grade. Typically the gold in high sulfidation systems is deposited in permissive host rocks that are layered with the possibility of capping rocks above and the gold pathways or so-called “feeders” can also be important sources of ore as well. This situation can create several advantages for high sulfidation gold deposits besides their often well-oxidized state. This includes a consistent ore horizon cut or underlain by discreet high-grade structures creating the possibility of a starter pit or pay zones with significant benefits for project economics.
At Lydian International’s Amulsar high sulfidation gold deposit in Armenia, there has been only limited effort so far to chase or define the feeder zones. Meanwhile, the classic upgrading beneath an impermeable rock cap has been observed in several areas. As this latest set of assays reveals, feeder structures appear to exist over a potentially wide extent in the form of “fault breccia”. The fault is perhaps a pathway for energetic ore fluids that broke up the local rocks into breccia due to proximity to a magmatic source that also provided the gold to the system. These “fault-breccia structures” may contribute substantially to overall deposit grade and ounces before all is said and done.
Of course the quality of the gold ounces in the ground is more important than the quantity and it is here that an intersection like 69 meters of 3.8 grams of gold per tonne can start to make a difference especially when combined with previous results such as 24 meters of 7.4 g/t gold. While these result are likely hosted in a vertical structure, the best hole so far from the project at 84 meters of 4.9 g/t gold appears to be from an area where overlying rocks had a capping effect that concentrated gold along a flat horizon.
The Amulsar project has already passed the exploration hurdle where it is now quite obvious that it will become a gold mine in the future due in large part to the excellent metallurgical and geometrical qualities of the ore bodies defined to date. The preliminary economic assessment released on July 25 reveals a robust project with minimal capital requirements and a low cash cost. That said, the mine life is somewhat short and the production profile during the initial years at just over 100,000 ounces per annum could be better. Therefore it is quite encouraging that a very aggressive drill program is ongoing with a total of 9 rigs to not only upgrade the resource to support a feasibility study but also to make additional discoveries such as those being reported.
With a market cap of just under $250 million, Lydian isn’t exactly cheap but it still appears to have plenty of upside in an environment of strong gold price. Both further discoveries and project advancement could be important price drivers in the months ahead. It helps also that Brent Cook of Exploration Insights has visited and blessed the project. The odds heavily favor Amulsar becoming a mine valued within a few years with a higher value than currently ascribed to Lydian. We would be buyers on any pullback.
2 years ago
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