Luiri Gold Limited
TSX VENTURE : LGL
ASX : LGM

Luiri Gold Limited

May 05, 2010 11:26 ET

Luiri Gold-Drilling Results from Matala Shallow Central Zone

TORONTO, CANADA--(Marketwire - May 5, 2010) - Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM) is pleased to announce the new assay results of 21 RC drill holes at the Luiri Hill Gold Project to test the continuity of the near surface western and central zones at Matala. The drilling has confirmed that the Matala deposit extends to surface for at least 700m of the 1,000m strikelength of the deposit.

Highlights from the shallow RC drilling on the Matala western and central zones are included in Table 1 below.

Table 1: Highlighted results from shallow drilling at Matala deposit  
Hole ID FROM (m ) Est. True Width (m ) Gold (g/t )
MTLRC174 26   7.2   3.4  
  Including 29   0.9   10.6  
MTLRC175 11   10.6   3.7  
  including 21   0.9   10.6  
MTLRC178 16   11.7   3.1  
  Including 19   0.9   20.8  
MTLRC179 26   10.8   3.5  
MTLRC181 13   2.7   5.1  
  including 13   0.9   10.7  
MTLRC184 13   2.7   11.7  
  including 14   0.9   32.5  
MTLRC186 9   0.9   51.2  
MTLRC188 7   1.8   31  

The previous mineralization model at the Matala western zone had been defined to approximately 30m below surface based on historical interpretation, and was absent in the central area(see attached Figure 1). However, the recent infill drilling programme which confirmed the presence of the well-mineralized central zone also indicated that the mineralization possibly continued to surface in the central and western zones. As a result, a total of 21 RC drill holes were drilled to test the near surface extent of the mineralization along the full central and western extent of the deposit. 

This drilling has shown that the mineralization occurs near surface for at least 700m of the 1,000m strikelength of the deposit and should lead to a potential increase in the contained gold available to open pit mining. It could also have the potential to enhance the economic characteristics of open pit mining due to earlier gold production from near surface resources. The Company is currently updating the resource model and will follow this up with a pit optimization study.

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

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.

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 2: Results of the RC drilling programme at the shallow Matala central and western zones.

Drill Hole ID From (m ) True width (m ) Grade (g/t ) Cumulative Grade (g/t x m ) Comments
MTLRC174 12   0.9   1.4   1.2    
    and 26   7.2   3.5   24.8    
  includes 29   0.9   10.6   9.6    
MTLRC175 11   10.8   3.7   39.5    
  includes 21   1.8   10.6   19.0    
MTLRC176                 Assays still outstanding
MTLRC177 No significant intersection        
MTLRC178 16   11.7   3.1   35.8    
  includes 19   0.9   20.8   18.7    
MTLRC179 20   1.8   5.5   10.0    
    and 26   10.8   3.5   37.3    
    and 45   0.9   1.2   1.1    
MTLRC180 14   0.9   2.5   2.2    
    and 23   1.8   6.1   11.0    
MTLRC181 13   2.7   5.1   13.6    
  includes 13   0.9   10.7   9.6    
MTLRC182 No significant intersection        
MTLRC183 27   0.9   3.2   2.9    
MTLRC184 13   2.7   11.7   31.5    
  includes 14   0.9   32.5   29.3    
MTLRC185 No significant intersection        
MTLRC186 9   0.9   56.9   51.2    
MTLRC187 No significant intersection        
MTLRC188 7   1.8   31.0   55.8    
MTLRC189 No significant intersection        
MTLRC190 No significant intersection        
MTLRC191 No significant intersection        
MTLRC192 No significant intersection        
MTLRC193 No significant intersection        
MTLRC194 No significant intersection        

Note: * The down hole lengths at the Matala deposit have been corrected to true widths 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 dispatched 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 protocol and lodged under the companies profile on the Sedar website.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/LGL505fig1.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 Limited
    Michael Sperinck
    President
    +61-401-694-322
    www.luirigold.com
    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