The Amulsar licence areas cover a region of high-sulphidation, epithermal-type gold mineralisation located in central Armenia and discovered by Lydian in 2006. The Amulsar project forms part of Lydian's Caucasus Joint Venture with Newmont Overseas Exploration Ltd, a wholly owned subsidiary of Newmont Mining Corporation (NYSE & ASX: NEM; TSX: NMC).

The exploration licences are held 100% by Geoteam, an Armenian registered closed joint stock company. Geoteam CJSC is held 95% by Lydian Resources Armenia (a wholly owned subsidiary of Lydian International Ltd) and 5% by a private local partner.

Soil geochemical analyses (2006 and 2007) identified an area of 3.5 by 0.5 km with a core of values exceeding 0.1 g/t gold measuring some 1 Sq. km, including localised high-grade soil samples of up to 2.13 g/t gold. More than 21% of grab rock-chip samples collected to date have returned grades of greater than 1 g/t gold. Trench samples have returned results of 128 metres at 1.3 g/t gold (complete trench) and channel samples have returned 20 metres at 9.9 g/t (highest value 23.9 g/t), 23 metres at 9.3 g/t (highest value 30.6 g/t), and 13 metres at 2.5 g/t (highest value 4.6 g/t), all at a 0.5 g/t cut-off.

Five scout diamond drill holes totalling 591 metres were drilled in 2007 and represent the very first subsurface test of the gold potential at Amulsar.

A further 13,000 metres of combined diamond and reverse circulation drilling have just been completed at the project. A summary of all drill results returned to date is provided in Table X and Table 1 below provides the highlights.

Results of step out drilling on the Artavasdes and Erato prospects are eagerly awaited.

Figure 1:

Amulsar Panoramas:

(Click images for expanded view)