Lero Gold Corporation
TSX VENTURE : LER

Lero Gold Corporation

January 18, 2007 10:08 ET

Lero Gold Corp.: Confirmation of Grade and Continuity of Karchiga VHMS Deposit

LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 18, 2007) - Lero Gold Corp. ("Lero", or the "Company") (TSX VENTURE:LER) is pleased to announce that drill results from an earlier drill programme on the recently acquired Karchiga VHMS deposit, Kazakhstan, have confirmed mineralisation consistent with historic Soviet drilling.

To ensure drilling intervals returned the most accurate representation of the true thickness of the deposit, three holes were drilled perpendicular to strike and inclined 80 degrees to the south west. All three drill holes confirmed the continuity and grade of the mineralisation as reported by the Soviet geologists in 1956.

Results from the Lero drilling are listed below:



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Hole ID From (m) To (m) Thickness (m) Cu (%) Zn (%)
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KGDD-1 17.5 18.4 0.9 1.20 0.02
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23.0 39.2 16.2 1.13 0.026
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KGDD-2 40.3 45.3 5.0 3.40 0.27
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KGDD-3 29.2 37.2 8.0 4.03 0.43
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39.2 40.2 1.0 2.57 0.19
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44.2 45.2 1.0 2.46 0.19
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Table 1. Significant intersections from earlier drilling at Karchiga


The Karchiga VHMS deposit, which covers a total area of 47.3km2 is a mid-Palaeozoic aged metamorphosed volcanic hosted massive sulphide deposit (VHMS) located in the extreme north east of the Republic of Kazakhstan, within 40km of the Chinese border. The project is readily accessible and is situated on gentle undulating terrain. The deposit is geologically robust and is situated within the world class Rudny Altai VHMS belt resulting in significant potential for the discovery of additional mineralisation along 10 strike km of the fertile VHMS horizon contained within the license perimeter.

Massive and disseminated chalcopyrite-pyrrhotite-pyrite +/- sphalerite mineralisation occurs along a planar contact between metavolcanics in the footwall and gneissic metasediments in the hangingwall. The ore zone has a strike length of 1,300 metres, dips at 25-30 degrees to the north east and extends to depths of up to 200 metres below surface. The orebody appears to be geologically robust and Soviet era metallurgical test-work indicates that a high quality concentrate with copper recoveries in excess of 90% is readily achievable.

The deposit was discovered and explored by Soviet geologists during the 1940's and 50's. Exploration included the excavation of trenches and small pits, the development of an exploration shaft and at least 100 cored drill holes for a total metreage in excess of 10,000m. There has been no systematic exploration of the deposit since that time. Lero sees excellent potential to implement modern exploration techniques and detailed exploration of a number of existing geophysical and geochemical anomalies that to date remain inadequately tested within other parts of the license.

Lero plans to compile the historic exploration data during the winter months enabling detailed exploration of existing geophysical and geochemical anomalies to commence after the spring thaw.

President and CEO of Lero, Nick Clarke said:

"The favourable results from this earlier drilling programme gives Lero confidence in the historic Soviet results while also confirming the significant potential of the Karchiga deposit and the surrounding exploration license".

Notes to Editors:

1. Lero Gold Corporation (TSX VENTURE:LER) is a new base and precious metal exploration company led by a senior management team with extensive expertise in mineral exploration and advanced project management. In July, 2006 Oriel Resources Plc completed its previously announced transfer and sale of its gold related assets into Lero Gold Corporation ('Lero') (formerly ELE Capital Corporation - 'ELE'). Lero resumed trading on TSX Venture Exchange (TSX VENTURE:LER) on Thursday July 27, 2006 under the trading symbol "LER". Lero Gold is currently seeking and evaluating advanced exploration stage gold and base metal projects in Kazakhstan, Kyrgyzstan and Russia. The Company is currently exploring two advanced staged gold deposits in the Tien Shan gold belt in the Kyrgyz Republic.

2. All intervals reported are not true thickness.

3. All work carried out on site was supervised by Doug Cook (Exploration Manager and a Qualified Person under National Instrument 43-101). All samples were analysed at Alex Stewart Assayers (ASA) in Kara Balta, Kyrgyzstan. ASA is part of the OMAC group of companies and is certified to ISO 9001 2000 by Bureau Veritas Quality International. Gold analyses are by 30g fire assay with AAS finish and copper by aqua regia digestion with atomic emission spectrometry finish. Lero Gold operates a stringent QA/QC policy that includes external standard and blank samples included in each individual batch sent for analysis.

The TSX venture exchange does not accept responsibility for adequacy or accuracy of this release.

Contact Information

  • Lero Gold Corporation
    Nick Clarke
    President & CEO
    +44 (0) 20 7514 0590
    or
    Lero Gold Corporation
    Darryl Yea
    Non-Executive Chairman
    (604) 699-2458
    or
    Lero Gold Corporation
    Gavin Dallas
    Marketing and PR
    +44 (0) 20 7514 0590
    or
    Lero Gold Corporation
    Patrick Elliot
    Manager IR
    (604) 643-1744
    Email: info@lerogold.com
    Website: www.lerogold.com