Luiri Gold Limited

Luiri Gold Limited

November 04, 2009 13:04 ET

Luiri Gold Completes C$7.69 Million Financing With Euroz Securities Limited

TORONTO, CANADA--(Marketwire - Nov. 4, 2009) - Luiri Gold Limited (TSX VENTURE:LGL) ("Luiri Gold") is pleased to announce that Euroz Securities Limited ("Euroz") has successfully completed the raising of A$8 million (approximately C$7.69 million) to advance exploration at its Luiri Hill Gold and Nambala Iron Projects in Zambia.

A total of 40 million CHESS Depositary Interests (CDI's) will be issued at A$0.20 per common CDI (approximately C$0.192). The CDI's will be listed on the Australian Securities Exchange Limited ("ASX"). Each CDI ranks equally with each Luiri Gold ordinary share listed on the TSX.V. It is anticipated that Luiri Gold will list on the ASX in November 2009 and will trade under the symbol LGM.

"Having been able to complete the raising in only one week shows the strong interest that the offering received, and the commitment of the team at Euroz", said Mike Sperinck, MD and CEO of Luiri Gold, "The funds will allow us to aggressively progress our strategy to expand the current resource base and continue with our feasibility studies at the Luiri Hill project."

Luiri Gold has recently completed a plus 9,000m RC drill programme at its gold project which included both infill drilling at the Matala and Dunrobin deposits and follow up drilling at other targets. Assay results from this programme are expected later this month. A second development drilling programme is planned to commence in December, focusing on expanding the gold resource base. Discovery costs to date have been approximately US$10 per resource ounce.

As well as this development drilling programme, the Company is also about to commence a major follow up exploration programme at a number of targets which are in similar structural positions to the Matala and Dunrobin deposits (see Press Release February 6, 2008). This is part of the strategy to explore for additional resources based on positive results from the previous soil geochemical sampling programme over the rest of the Matala Dome mineralized structure.

Luiri Gold has also allocated funds to undertake further work on the Nambala Iron Project including drilling and scoping studies.

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 tonnes contained in this deposit could be several times larger than this figure. Note that the potential quantity and grade is conceptual in nature, and 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.

The Luiri Gold exploration programs and resource calculations are carried out under the supervision of Mr. Michael Sperinck, Member of AUSMIM. Mr. Sperinck is a qualified person (as defined by National Instrument 43-101) with more than 25 years of experience in the mining industry.


Michael Sperinck, President 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.


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