Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

October 22, 2007 08:30 ET

Luiri Gold Continues to Extend Gold Mineralization at the Luiri Hills Project

The drilling at the Luiri Hills Project at the Matala and Dunrobin deposits continues to show extensions to the mineralization at the Luiri Hills Project in Zambia. Furthermore, the company is planning to continue drilling on an expanded programme based on the success of this drilling.

TORONTO, CANADA--(Marketwire - Oct. 22, 2007) - Luiri Gold Limited (TSX VENTURE:LGL) has completed 23 drill holes including 6,946m of diamond core drilling of the planned 8,000m at the Dunrobin and Matala gold deposits. The drilling programme has been planned to expand the current resource estimates for both deposits. The drilling is ahead of schedule and will be completed a month early in October due to the company's decision to use two available diamond rigs for the total programme.

The company has received the results of the first six drill holes completed at the Matala deposit.

Four drill holes have returned positive mineralized intersections including a 5.5m intersection of 5.9g/t from 488m downhole depth in MTL73 (including 2m at 13.6g/t), a 15m intersection of 2.2g/t from 208m downhole depth in MTL51 (including 1.4m at 10.0g/t), a 5.5m intersection of 2.6g/t from 328m downhole depth in MTL72 (including 1m at 7.8g/t) and a 6m intersection of 2.8g/t from 278m downhole depth in MTL59 (including 2m at 4.3g/t). Three of these holes were on extensions to the current resource model limits (see Table 1 for all results).

When these results are viewed in the context of the overall results to date, they support the potential for extensions at both the Matala and Dunrobin deposits. While no other assay results have been received, all but one of the drill holes completed at the Matala deposit has intersected the mineralized-breccia structure. At the Dunrobin deposit, the current intersections have also confirmed the continuation of the mineralization. Luiri Gold expects a steady flow of assaying results from the Genalysis laboratory until the end of November. Thereafter, the company will undertake a resource update at the Dunrobin and Matala deposits for input into the Scoping study.

Luiri Gold has also decided to continue drilling with the two available rigs based on the success of the current drilling programme. The drilling will focus on the potential to further extend the resources at Matala, evaluate depth extensions at Dunrobin, upgrade the resource classification at the Dunrobin and Matala deposits, and define further resources at a number of advanced targets in close proximity to Dunrobin and Matala.

Current Drilling Results

A total of 6,946m (in 23 drill holes) has currently been drilled of which 4,094m (11 drill holes) were completed at the Matala deposit and 2,852m (12 drillholes) were completed at the Dunrobin deposit. Due to the lack of RC rigs in Zambia, a decision was made to drill the proposed holes with two available diamond core rigs. While this made the drilling more expensive, it has resulted in the programme being ahead of schedule by a month, whereas, there was no guarantee of sourcing an RC rig.

At the Matala deposit, in addition to the four drill hole results discussed earlier, all but one drill hole (MTL69) has intersected mineralized breccias on extensions to the deposit MTL51 was an infill drill hole (see Figure 1). MTL73, whose results are given, has intersected the mineralized zone about 300m below surface, the deepest intersection to date. The only drill hole not intersect the mineralized zone, was MTL69, where the breccia was found to be un-mineralized. This is interpreted to be at the eastern depth limit of the mineralization trend in this area. Drill holes MTL75, MTL76, MTL70 and MTL71 showed mineralization; with MTL71 particularly well developed (no assays available yet). A table showing all the results received to date for this drilling programme is included at the end with selected intersections shown in Figure 1.

To view Figure 1, please visit the following link: http://www.ccnmatthews.com/docs/lgl_fig1.pdf

At the Dunrobin deposit the drilling has continued to confirm that the mineralization is open at depth. It is also possible that the deeper drilling will intersect some of the higher grade mineralization that was previously mined by underground techniques up to a depth of 90m below surface.

To view Figure 2, please visit the following link: http://www.ccnmatthews.com/docs/algl_fig2.pdf

New Drilling Programme

The new drilling programme will focus both on the continued expansion of the resource base at the project, and on improving the classification of the resources both at the Matala and Dunrobin deposits through infill drilling. The drilling will also focus on the potential to convert a number of the advanced targets into resources. These targets include the Matala Extension a 5km long soil, trench and drilling anomaly that continues to the west of the current deposit, and a number of separate Dunrobin style mineralized zones within a 10km radius of the Matala and Dunrobin deposits, which are themselves 8km apart. This is with a view to be able to potentially source additional material near to a centralized plant if economically feasible.

Qualified Person

The Luiri Gold exploration programs and resource calculations are carried out under the supervision of Mr. Michael Sperinck, 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.

About Luiri Gold

Luiri Gold is a gold focused African resource company with a strategy of creating shareholder value through expanding into a geographically diversified gold resource company with assets potentially ranging from producing mines and near term production to exploration properties in Africa. Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, holds mineral tenements within southern-central Zambia covering approximately 2,400km 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 Luiri Hills Project area is adjacent to ground held by BHP Billiton in Joint Venture with other parties. This consortium has been actively exploring for iron oxide gold-copper ("IOCG") mineral occurrences. Furthermore, independent research has drawn similarities between the Dunrobin gold deposit and the Kansanshi copper-gold project of First Quantum 350km to the north of Luiri Hills project area.

The new mineral resource estimates include a total inferred mineral resource of 378,000 ounces gold and a total indicated mineral resource of 117,000 ounces gold. These mineral resource ounces are contained in 3.2 million tonnes at 3.7g/t for the inferred category and 1.8 million tonnes at 2.0 g/t for the indicated category.

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 and CEO

Ted Grobicki, Chairman

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: Mineralized drill hole intercepts for Matala deposit

Hole ID From To Interval(i) Gold
(m) (m) (m) g/t

MTL51 185.3 187.3 2 6.6
Including 1 11.6
and
MTL51 192 196 4 2.5
including 1 6.1
and
MTL51 208 223 15 2.2
including 1.4 10.0
and
MTL51 237 239 2 3.6

MTL59 277.7 283.7 6 2.8
including 2 4.3

MTL69 No significant intersections

MTL72 328.4 333.9 5.5 2.6
including 1 7.8

MTL73 451.4 453 1.6 3.7
and
MTL73 472.8 476.4 3.6 2.5
including 1 5.2
and
MTL73 488.5 494 5.5 5.9
including 2 13.6

MTL74 297.4 298.3 0.9 1.5


Note: (i) At the Matala deposit the lengths are down hole and the drill holes are inclined at between 40 degrees to 50 degrees and the average dip of the deposit is at about 65 degrees. Therefore the reported intervals should be within 10% of true width.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Luiri Gold Limited
    Michael Sperinck
    President
    +61-401-694-322
    Website: www.luirigold.com