Luiri Gold Limited
TSX VENTURE : LGL
ASX : LGM

Luiri Gold Limited

January 14, 2010 11:56 ET

Luiri Gold-Additional Assay Results From the 2009 Drilling Programme at the Luiri Hill Project

TORONTO, CANADA--(Marketwire - Jan. 14, 2010) - Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM) has released the assay results from a further 34 drill holes at the Luiri Hill Gold Project. These assay results were from 5 infill diamond drill holes at the Dunrobin deposit, 6 infill diamond drill holes at the Matala deposit, and 23 Reverse Circulation (RC) exploration drill holes on the Matala Dome near the Dunrobin deposit. Additionally, 5 RC drill holes were completed to test the continuity of the wider mineralization in the central Matala zone (New Release December 17, 2009) with all intersecting the mineralized zone. The samples have been submitted for analysis.

The results of the infill diamond drilling continue to confirm that Matala and Dunrobin are robust deposits with consistent mineralization. The drilling at Matala has indicated the presence of a high grade core to the mineralization with grades significantly higher than expected encountered in the central part of the deposit. Exploration drilling at the Chosa and Shadrek prospects has confirmed the presence of gold mineralization which requires further follow up drilling.

Highlights from the recent diamond drilling results are included in the table below.

Hole ID* FROM (m) TO (m) Est. True Width (m) Gold (g/t)
MTL102 109 120 10.3 13.0
including 115 118 2.8 45.5
DUNDD120 6 35 26.7 3.6
including 30 34 3.7 11.4
DUNDD122 33 46.7 12.6 5.9
including 44 46.7 2.5 19.1
DUNDD121 62 87 23 2.1
MTL100 66 86.6 18.3 2.6
including 81 82 0.9 14.8
DUNDD119 0 12 11 2.8
including 2 4 1.8 11.8
* MTL prefix denotes Matala, DUNDD denotes Dunrobin

Details on the assay methods and intersection calculations including a full list of results is given at the end of this News Release with Table 1.

Matala Deposit

The diamond drill holes were positioned to provide additional core intersections for metallurgical testing and as further infill drill holes for resource estimation to upgrade the resource classification (Figure 1 and 2).

Drill hole MTL 102 is the highest grade drill intercept from the project to date with an estimated true width of 10.3 m grading 13 g/t Au at an approximate depth of 90 m below surface. This hole also returned 2.8 m grading 7.1 g/t Au and 0.9 m grading 18 g/t Au at a depth of approximately 70 m below surface.

This hole is located in the eastern section of Matala and indicates the presence of thick, high grade mineralization relatively close to surface. This result comes on the back of the high grade near surface result released on 17 December 2009 in MTLRC114 ( estimated true width of 5.6 m grading 21.1 g/t Au) which is located in the central section of the Matala deposit and located just 50 m below the surface.

Two of the drill holes (MTL100 and MTL103) were terminated when they intersected old stopes however, significant gold mineralization in the hangingwall was encountered in both drill holes. Two additional drill holes MTL100A and MTL103A were drilled to supplement these drill holes.

A total of 5 of the 8 RC drill holes (RC168 to RC171, and RC173) which were planned to test the continuity of a wider central mineralization zone at Matala (News Release December 17, 2009) were completed before the suspension of drilling over the year end. All drill holes intersected the Matala mineralized zone and samples have been submitted for analysis. Drilling of the remaining 3 central zone drill holes and the extension of drill holes will continue in January 2010.

Dunrobin Deposit

 The Dunrobin drill holes were sited along the main plunge of the mineralized structure and returned very well mineralized gold intersections. The remaining core from these mineralized intersections will be split and sent for further variability metallurgical testwork in Perth, Australia.

The Dunrobin deposit is a relatively flat lying zone of mineralization which starts at surface. DUNDD120 (26.7 m estimated true width grading 3.6 g/t Au) drilled through the full extent of the mineralized zone, while DUNDD122 intersected some of the old stoping immediately below the reported intersection (12.6 m estimated true width grading 5.9 g/t Au). If the old stoping is taken into account, the full width of the mineralized zone would have been 27.6 m (Note that the resource model has been depleted for this old stoping). In addition, DUNDD119 drilled on a similar line started at the within the mineralization exposed at surface in the current pit with the reported intersection (11 m at 2.8 g/t Au) representing the remaining bottom portion of the mineralized zone. These drill holes were drilled in the centre of the deposit and confirm the presence of a thick near surface mineralized zone.

Exploration Target Drilling

The results from 23 exploration RC drill holes which were focused on the nose of the northern lobe of the Matala Dome structure between the Dunrobin deposit and the Shareck and Chosa targets were received. This programme was designed to test the continuity of some of the mineralization found at Shadrek during the previous drilling programme, and to test the remaining contact zone with elevated soil sampling anomalies between the carbonates and the basement in the area between Shadrek and Dunrobin, and to identify the same contact zone at Chosa (see Figure 3).

The following table gives a list of significant results.

Hole ID FROM TO Width* Au
(m) (m) (m) (g/t)
CHRC09 129 141 12 3.6
including 135 136 1 23.2
DUNRC01 20 21 1 30.1
CHRC17 79 87 8 1.6
SHRC16 0 8 8 1.6
SHRC15 70 74 4 1.2
CHRC08 87 91 4 1
CHRC08 114 119 5 0.9
SHRC16 39 41 2 1
CHRC12 42 45 3 0.9
* Downhole lengths

Details on the assay methods and intersection calculations including a full list of results is given at the end of this News Release with Table 2.

At Chosa, CHRC09 intersected 12 m grading 3.6 g/t Au, however, the geology at the Chosa deposit was more complicated than expected. The geology of Chosa will be reinterpreted with the results from previous drilling programmes.

The drilling at Shadrek again confirmed the presence of interesting levels of gold mineralization especially in the south where the gold soil anomaly is still open to the south. Further geological interpretation will be carried out on this area prior to the next round of drilling. Previous gold mineralized intersections adjacent to the current drill holes SHRC15 and SHRC16 include drill hole SHRC12 with 8 m at 5.3 g/t Au (including 3 m at 12.9 g/t Au).

Qualified Person

The Luiri Gold exploration programs and resource calculations have been carried out under the supervision of Mr. Michael Sperinck, AUSMIM. Mr. Sperinck is a qualified person, as defined by National Instrument 43-101, and as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Sperinck is a Director and full-time employee of the Company. Mr Sperinck consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Sperinck has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration with more than 25 years of experience in the mining industry.

About Luiri Gold

Luiri Gold is a gold focused company with a strategy of creating shareholder value through building Luiri into a geographically diversified gold resource company in Africa with assets potentially ranging from near term production to exploration properties. The current focus is at Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, which holds mineral tenements within southern-central Zambia covering approximately 1,200km2 of highly prospective exploration ground focused on the Dunrobin and Matala gold deposits. The Luiri Hill Project is situated approximately 120km west-northwest of the Zambian capital of Lusaka in Zambia's Central Province. Access to the Project area is by a newly-upgraded paved road from Lusaka.

The current Mineral Resource at the Luiri Hill Project includes 656,000 ounces gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category (reported in Press Release April 15, 2008).

In addition to the substantial gold resources the Luiri property also hosts the large, prominently outcropping hematitic Nambala iron deposit. A review by Coffey Mining indicated that on part of the mineralized body there exists the 'mineral potential' of between 100 and 300 million tonnes of rock at grades of 55-60% Fe. Interpretation of the regional geology indicates that the tonnages contained in this deposit could be significantly larger than this figure. It should be noted that the potential quantity and grade is conceptual in nature, and that there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Luiri Gold's mineral tenements and the resource estimate are the subject matter of two Technical Reports which are available for review under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED

Michael Sperinck, President, Managing Director and CEO

This press release contains forward-looking information which involves risks and uncertainties. Forward looking information represents management's current views and these may change significantly as new information comes to hand.

Table 1: Results of the diamond drilling programme at the Matala and Dunrobin gold deposits.

Hole ID FROM (m) TO (m) Corrected Width (m) Au (g/t) Ag (g/t) Au accumulation (mg/t) Comment
DUNDD119 0.0 12.0 11.0 2.8 0.5 31  
including 2.0 4.0 1.8 11.8      
DUNDD120 6.0 35.0 26.7 3.6 1.6 96  
including 30.0 34.0 3.7 11.4      
DUNDD120 45.0 49.0 3.7 1.7 0.0 6  
DUNDD121 62.0 87.0 23.0 2.1 14.4 49  
DUNDD122 33.0 46.7 12.6 5.9 18.2 75  
including 44.0 46.7 2.5 19.1   47  
DUNDD122 46.7 51.2 4.1       Old workings
DUNDD122 51.2 54.2 2.8 2.2 1.0 6  
DUNDD122 54.2 55.7 1.4       Old workings
DUNDD122 55.7 63.0 6.7 1.7 0.2 11  
MTL100 66.0 86.6 18.3 2.6 3.8 47 Ended in mineralization. Holed into old mine workings.
including 81.0 82.0 0.9 14.8      
MTL101 106.0 110.7 4.2 4.4 1.4 18  
including 108.0 109.0 0.9 12.9      
MTL102 84.0 87.0 2.8 7.1 3.7 20  
including 85.0 86.0 0.9 20.4      
MTL102 93.0 94.0 0.9 18.0 5.4 17  
MTL102 109.0 120.0 10.3 13.0 4.5 135  
including 115.0 118.0 2.8 45.5      
MTL103 22.0 29.6 7.7 3.0 0.7 23 Ended in mineralization. Holed into old workings.
including 24.0 25.0 0.9 14.7      
MTL104 92.0 96.0 3.6 7.2 8.6 26 Ended in mineralization
including 92.0 93.0 0.9 16.4      
MTL100A 36.0 41.0 4.5 2.3 0.5 10  
MTL100A 45.0 53.0 7.1 1.1 2.6 8  
MTL100A 59.0 60.0 0.9 9.7 4.5 9  
MTL103A 50.0 55.0 4.5 4.7 1.6 21 Sampling started in mineralization
including 50.0 52.0 1.8 10.0      
MTL103A 61.0 64.0 2.7 2.3 0.4 6  
Note: * The down hole lengths at the Matala and Dunrobin deposits have been corrected using the down hole survey of the intersection and the local modeled dip of the mineralization. As the drill holes have been drilled perpendicular to the strike, no correction has been made for azimuth as the maximum deviation is less than 10 degrees. A cutoff grade of 0.5g/t Au and 0.3g/t Au has been used to define the boundary of the mineralized intersection at Matala and Dunrobin respectively. Gold accumulation is the weighted gold grade (g/t) multiplied by the width of the intersection (meters).
 
All mineralized diamond core was logged, cut and placed in plastic bags. The targeted depths were supplied to the geologist on each rig. The samples were submitted to Genalysis Laboratories in Johannesburg for sample preparation and analysis for gold by Fire Assay technique, followed by an atomic absorption spectrometer (AAS) reading. Sample pulp is despatched from Genalysis Johannesburg to Genalysis Perth for the multi-element analysis including copper by Aqua Regia dissolution, followed by an ICP-MS reading.
 
A Quality Assurance/Quality Control (QA/QC) program forms part of the drilling, sampling and assay program on the Luiri Hill Gold Project. This program includes chain of custody protocol as well as systematic submittal of certified reference materials, duplicates and blank samples into the flow of samples produced by the drilling. The approach is covered in the previous Technical Reports prepared according to the NI43-101 and lodged under the companies profile on the Sedar website.

Table 2: Results of the RC drilling programme at the targets along the contact of the Matala Dome near Dunrobin.

Hole ID FROM (m) TO (m) Width (m) Au (g/t) Comment
CHRC08 87 91 4 1.0  
CHRC08 114 119 5 0.9  
CHRC08 145 150 5 0.6  
CHRC09 129 141 12 3.6  
including 135 136 1 23.2  
CHRC10         No significant intersection
CHRC11         No significant intersection
CHRC12 42 45 3 0.9  
CHRC13         No significant intersection
CHRC14         No assays received
CHRC16         No significant intersection
CHRC17 79 87 8 1.6  
DUNERC01 12 17 5 0.5  
DUNERC01 20 21 1 30.1  
DUNERC01 69 73 4 0.5  
DUNERC02         No significant intersection
DUNERC03         No significant intersection
DUNERC04         No significant intersection
DUNERC05         No significant intersection
DUNERC06         No significant intersection
DUNERC07         No significant intersection
DUNERC08         No significant intersection
DUNERC09         No significant intersection
SHRC13         No significant intersection
SHRC14         No significant intersection
SHRC15 70 74 4 1.2 Ended in mineralization
SHRC16 0 8 8 1.6  
SHRC16 21 26 5 0.6  
SHRC16 39 41 2 1.0  
Note: * No attempt has been made to correct for the true widths as the nature of the mineralization is not well understood. All samples were split using Jones rifflers and collected in plastic bags. As these were exploration drill holes, all samples were selected for analysis. The samples thereafter were submitted to Genalysis Laboratories in Johannesburg for sample preparation and analysis for gold by Fire Assay technique and followed a similar process to the diamond core.

To view Figure 1: Matala deposit – Longitudinal Section showing of drilling results (Note the drill hole names have been shortened for plotting), please visit the following link: http://media3.marketwire.com/docs/FIG1114.jpg.

To view Figure 2: Position of diamond drilling in current pit at Dunrobin deposit, please visit the following link: http://media3.marketwire.com/docs/FIG2114.jpg.

To view Figure 3: Matala Dome – Exploration RC drilling programme on nose of dome at Dunrobin, please visit the following link: http://media3.marketwire.com/docs/FIG3114.jpg.

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Contact Information

  • Luiri Gold
    Michael Sperinck
    President
    +61-401-694-322.
    or
    For Luiri Gold's North American Investor Relations:
    First Canadian Capital Corp.
    Daniel Boase
    416-742-5600 or Toll Free: 1-866-580-8891
    request@firstcanadiancapital.com
    www.luirigold.com