DAWSON CREEK CAPITAL CORP.
TSX VENTURE : DAW.P

November 28, 2007 18:01 ET

Dawson Creek Capital Corp. and Lydian Resource Company Limited Announce Update on Armulsar Project

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) - DAWSON CREEK CAPITAL CORP. ("Dawson Creek") (TSX VENTURE:DAW.P) is pleased to announce an update on Lydian Resource Company Limited's ("Lydian") exploration program underway on its Armulsar project in Armenia. Dawson Creek has made an offer to acquire from Lydian's shareholders all of Lydian's issued and outstanding shares.

Gold analytical results have been returned for two scout drill holes at Lydian's Armulsar epithermal gold project. Armulsar is a new discovery identified by Lydian geologists in 2006. Rock-chip sampling and soil geochemical analyses reveal that the mineralising system extends over a strike length of some 3.5km. The project is currently being explored as part of a joint venture with Newmont Overseas Exploration Limited, a wholly owned subsidiary of Newmont Mining Corporation (TSX:NMC)(NYSE:NEM)(ASX:NEM). These drill results are presented in Table 1 and represent the first subsurface test of the gold bearing potential of the system.

Five scout diamond drill holes were drilled into the Armulsar project for a total of 593m. Gold assay results have now been returned for drill holes DDA-02 and DDA-04 (drill holes were not assayed consecutively due to two drill rigs completing holes at different rates). DDA-02 is a vertical hole that was abandoned due to stuck rods at 69m and failed to meet its objective (a shallow east-dipping strata-bound target). DDA-04 was collared in steeply-dipping gold mineralised hydrothermal breccia and drilled at a dip of 45 degrees towards 270 degrees to a total down-hole depth of 145m. DDA-04 intersected high-grade mineralisation in hydrothermal breccia for the first 38m of the drill hole (38m @ 3.5g/t Au across logged breccia intervals) and further breccia-hosted mineralisation was encountered down the drill hole with more fracture-controlled low-grade mineralisation encountered between the breccia intervals (average grade of entire hole 145m @ 1.16g/t). DDA-02 was drilled to test for a sub-horizontal strata-bound zone within and between the steeply-dipping hydrothermal breccia bodies. The hole was abandoned due to drilling problems but despite being drilled parallel to the main mineralised zones (vertical hole and vertical mineralised breccia bodies) it did intersect some small localised breccia bodies. Mineralised drill core in the last three metres of the drill hole suggests that it may have entered the strata-bound objective immediately before becoming stuck. Drill holes DDA-02 and DDA-04 confirm surface observations that gold mineralisation at Armulsar is related to steeply dipping, strongly silicified haematitic hydrothermal breccia bodies.

Lydian management are most encouraged by these results given particularly that they represent the first subsurface test for gold potential at Armulsar.



---------------------------------------------
Drill intersections using 0.5g/t Gold cut-off
---------------------------------------------
Hole ID From To Width Gold g/t
---------------------------------------------
DDA-04 3 10 7 9.0
---------------------------------------------
DDA-04 13 16 3 2.9
---------------------------------------------
DDA-04 17 30 13 4.1
---------------------------------------------
DDA-04 32 34 2 1.2
---------------------------------------------
DDA-04 37 39 2 0.6
---------------------------------------------
DDA-04 72 75 3 0.8
---------------------------------------------
DDA-04 111 117 6 2.4
---------------------------------------------
DDA-04 122 127 5 1.5
---------------------------------------------
DDA-02 15 16 1 3.2
---------------------------------------------
DDA-02 17 18 1 1.0
---------------------------------------------
DDA-02 37 38 1 0.6
---------------------------------------------
DDA-02 46 47 1 0.7
---------------------------------------------
DDA-02 64 66 2 1.8
---------------------------------------------

Table 1. Summary intersections DDA-04 and
DDA-02 using 0.5g/t cut off

Note: True width has not been determined.


Tim Coughlin BSc Geology, MSc Exploration and Mining Geology, PhD (structural geology), Lydian's Chief Executive Officer, is the Qualified Person overseeing Lydian's exploration programs in Armenia and has reviewed this press release. Mr. Coughlin has supervised the preparation of the technical information contained in this press release.

Lydian employees are instructed to follow the necessary standard procedures intended to ensure that all sampling and sample results meet all specified requirements for further use. Lydian is carefully deciding upon further actions and is focusing on remedial efforts to continuously improve the quality of its work.

Directly after drilling Rock Quality Designation (RQD) is measured by prompt logging to define the cumulative length of core pieces divided by the total length of the core run (including any lost or poorly recovered core sections). RQD is an index of rock quality in which a modified core recovery percentage is obtained. Lydian's scout drill holes dominantly have a core recovery classified as "good" (greater than 75% recovery), "fair" (50-75%) or "excellent" recovery (greater than 90%). Core is placed in core trays with plastic lining to avoid any loss of fine grained material before sampling. HQ core (63.5mm diameter) and NQ core (47.6mm diameter) are cut in half by diamond saw core parallel to the core. Half of the core is sampled every meter or slightly less at apparent lithological or structural breaks in the core.

Lydian samples - 2 to 3 kg of rock, rockchip, or drill core per sample - are bagged, labeled, sealed and dispatched to ALS Chemex analytical laboratory in Rosia Montana, Romania. At the Laboratory after fine crushing at less than 2mm (70%), subsequent riffle split, followed by a 1000g split pulverized to less than 75micron (85%), a 50g aliquot is analyzed for gold by fire assay with an atomic absorption spectroscopy (AAS) finish. The remainder is sent by ALS Chemex to its laboratory in Perth (pending registration to ISO 9001:2000) or Vancouver (ISO17025), where the sample is subject to four acid digestion and analysis for 33 elements by ICP-MS (ALS' ME-ICP61 package). ALS Chemex carries out regular checks by duplicating gold analyses for several samples, and by inserting its own blanks and standards as part of its own Quality Management System. Lydian prepares its samples dispatches to ALS Chemex with inclusion of blanks, duplicates, and three standards with different gold concentrations with random numbering.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this press release.

Contact Information

  • DAWSON CREEK CAPITAL CORP.
    Jeffrey A. Dawson
    President, Chief Executive Officer,
    Chief Financial Officer and Director
    1-877-932-8858
    or
    Lydian Resource Company Limited
    Roderick Corrie
    Chief Financial Officer and Director
    44 1249 760 120