Luiri Gold Limited
TSX VENTURE : LGL
ASX : LGM

Luiri Gold Limited

February 24, 2010 12:58 ET

Luiri Gold-Drilling Confirms Extensions in Matala Central Zone and Exploration Defines Large Gold Target

TORONTO, CANADA--(Marketwire - Feb. 24, 2010) - Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM) has released the assay results from the first 5 RC drill holes at the Luiri Hill Gold Project which were completed to test the continuity of the wider mineralization in the central Matala zone (New Release December 17, 2009). All 5 drill holes intersected the wider mineralized zone with 4 drill holes returning high gold grades. A further 3 RC drill holes were completed in January 2010 in the same area. The samples from these drill holes have been submitted for analysis. 

In addition, the results of the field programme completed in December 2009 which included mapping, rock sampling and detailed soil sampling has confirmed that a very large drill ready target exists in the Chikwashia area on the southern lobe of the Matala Dome but still within 10km of the current resource base.

"The results of the drilling at the Matala central zone is encouraging as this area was previously excluded from the wider Matala resource model," commented Mike Sperinck. "Furthermore, the results of the exploration at Chikwashia have shown that the Matala Dome region has the potential to source significantly more gold than is currently estimated in the mineral resources at the Matala and Dunrobin deposits."

Highlights from the recent infill RC drilling on the Matala central zone results are included in the table below.

Hole ID FROM  (m) TO (m) Est. True Width (m)    Gold   (g/t)
MTLRC170 87 97 9.2 6.1
including 89 92 2.8 17.5
MTLRC173 87 98 9.6 5.7
Including 88 89 0.9 41.5
MTLRC171 48 60 11.2 4.4
including 51 53 1.9 18.6
MTLRC168 158 164 5.2 6.7
including 158 160 1.7 14.7

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 – Central Zone.

A total of 5 (MTLRC168 to MTLRC171, and MTLRC173) of the planned 8 RC drill holes 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 (Figure 1 and Table 1). The final 3 drill holes (MTLRC166, MTLRC167 and MTLRC172) were completed in January and the samples have been submitted for analysis. 

All 5 drill holes showed wider than expected intersections within the Matala mineralization zone, with 4 of the drill holes exhibiting both very good widths and gold grades. These drill holes, when included with the recently drilled infill drilling programme have confirmed a robust high grade central zone at the Matala deposit.

Exploration Targeting, Southern Lobe – Chikwashia Area.

In December 2009, a comprehensive exploration programme was carried out over two selected targets on the southern lobe of the Matala Dome, specifically at Chikwashia and Sankawande, two areas in very similar structural positions as Dunrobin and Matala respectively and therefore with the potential to produce similar styles of gold mineralization. 

The results have shown that there is an extensive soil geochemical gold anomaly over Chikwashia extending for almost 2,000m north-south and up to 600m wide (Figure 2). The anomaly is centered on the contact between the basement dome and the surrounding carbonates, a high priority target area for shallow wide Dunrobin style gold mineralization. The higher grade region of the anomaly is also associated with outcropping gossans which grades up to 3 g/t Au in hand sample. However, the anomaly does not follow any streams or major topographical feature. Luiri Gold is currently planning an approximate 1000m RC drilling progamme to test the source of the gold mineralization. The programme should commence in the next two months.

The results from Sankawanda were also encouraging but more work is required in the field before a focused target drilling programme can be planned and this is underway.

Work is also continuing on a number of other targets closer to Dunrobin and Matala. Further drill targets are expected to be identified in the near future and drilling of these will be prioritized around Chikwashia.

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)
Gold
accumulation
(mg/t)
MTLRC168 146 149 2.6 5.6 0.7 15
including 148 149 0.9 15.9    
MTLRC168 158 164 5.2 6.7 1.7 35
including 158 160 1.7 14.7    
MTLRC169 110 116 5.6 2.5 1.3 14
MTLRC170 87 97 9.2 6.1 2.7 56
including 89 92 2.8 17.5    
MTLRC171 48 60 11.2 4.4 4.3 49
including 51 53 1.9 18.6    
MTLRC173 87 98 9.6 5.7 7.3 55
including 88 89 0.9 41.5    

Note: * The down hole lengths at the Matala deposit has 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 has been used to define the boundary of the mineralized intersection at Matala. Gold accumulation is the weighted gold grade (g/t) multiplied by the width of the intersection (meters).

All samples were split using Jones rifflers and collected 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.

To view Figure 1: Matala deposit, please visit the following link: http://media3.marketwire.com/docs/Matala.pdf

To view Figure 2: Chikwashia Gold Target, please visit the following link: http://media3.marketwire.com/docs/Chikwashia.pdf

The TSX VENTURE Exchange nor the ASX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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