Luiri Gold Limited
TSX VENTURE : LGL
ASX : LGM

Luiri Gold Limited

December 17, 2009 11:14 ET

Luiri Gold Releases Further Assay Results of the 2009 Drilling Programme at the Luiri Hill Project

TORONTO, CANADA--(Marketwire - Dec. 17, 2009) - Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM) has released the assay results from a further 23 drill holes of its plus 9,000m RC drilling programme (61 drill holes) at the Luiri Hill Gold Project (News Release December 2, 2009).

The results continue to confirm that the Matala deposit is consistently mineralized over significant widths and strike length and show that the wider mineralization zone is possibly more continuous especially at shallower depths in the central zone (Figure 1). Drilling is in progress to better delineate this central thicker zone.

Highlights from the recently received results are included in the table below.

Hole ID FROM (m) Corrected* Width (m) Gold (g/t)
MTLRC114 56 5.6 21.1
including 56 2.8 41.0
MTLRC116 64 13.3 4.7
including 72 3.8 14.0
MTLRC134 59 4.9 8.1
including 60 2.4 15.2
MTLRC139 63 12.6 5.0
including 71 2.9 17.9
MTLRC157 143 19.6 2.7
including 157 1.8 9.9
* Estimated true widths 

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.

Drilling Results
The results of the current drilling show that there is the potential for the wider mineralization to extend further in the central area. Previous interpretations modeled two wider mineralized zones, the western and eastern, separated by the thinner mineralized zone (Figure 1). However, this was based on a single drill hole (MTL001) from previous explorers and only the gold grade information was available. There was also a significant length of the drill hole where the gold grades were either missing or not sampled. Drill hole MTLRC116 from the current programme has intersected the mineralized zone within 15 meters of drill hole MTL001 and, as reported in this new release, has returned an estimated true width of 14 meters at 4.7 g/t Au. This intersection is also well supported by MTLRC139 with similar widths and grades.

A drilling programme has started with the purpose to confirm the extent of the wider mineralized zone.

A number of the drill holes, especially in the west, which ended in mineralization have been deepened during the December drilling programme. However most have been delayed so that the drilling of the wider central zone can take priority. The deepening drill programme will be continued in January.

A total of 6,077m of RC drilling (61 drill holes) of the 9,500m drill programme was completed during October and December 2009 at the Matala deposit by Boart Longyear using two RC drilling rigs. Only those sections of the drillholes which were identified as covering the mineralized Matala zone were submitted for analysis.

The drilling programme has been focused on the shallower portion of the deposit where initial pit optimization studies have identified the most likely areas that could fall into economic pit studies.

Figure 1 shows the projected intersections of mineralization in drill holes on a longitudinal section of the Matala deposit for the previous drilling programme and the current infill drilling programme reported to date. It also shows the extent of the previous estimate of the wide mineralized resource model.

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 infill drilling programme at the Matala gold deposit

Hole ID FROM (m) TO (m) Corrected* Width (m) Au (g/t) Au accumulation (mg/t) Comment
MTLRC105 94 98 3.1 3.3 10  
including 96 97 0.8 10.4 8  
MTLRC110 34 35 0.9 23.6 20  
MTLRC113 52 55 2.7 4.8 13  
MTLRC114 56 62 5.6 21.1 119  
including 56 59 2.8 41.0 116  
MTLRC115 51 59 7.7 4.3 33  
including 55 56 1.0 15.1 15  
MTLRC116 64 78 13.3 4.7 62  
including 72 76 3.8 14.0 53  
MTLRC118 26 30 3.7 1.9 7  Hangingwall of Stope
MTLRC118 30 35 4.7     Old Stope
MTLRC119 15 29 12.0 1.3 16  Hangingwall of Stope
MTLRC119 29 31 1.7     Old Stope
MTLRC119 31 34 2.6 2.2 6  Footwall of Stope
MTLRC120 37 44 5.9     Old Stope
MTLRC120 44 48 3.4 3.2 11  Footwall of Stope
MTLRC129 17 20 2.6 3.0 8  
MTLRC129 32 39 6.0 1.9 11 Ended in mineralization
MTLRC130           Ended in mineralization
MTLRC131 24 29 3.9 1.2 5  
MTLRC133 66 73 6.0 2.5 15 Ended in mineralization
MTLRC134 59 65 4.9 8.1 39  
including 60 63 2.4 15.2 37  
MTLRC137 95 102 6.4 3.9 25  
including 96 97 0.9 15.6 14  
MTLRC137 110 111 0.9 10.4 9  
MTLRC139 63 76 12.6 5.0 63  
including 71 74 2.9 17.9 52  
MTLRC140 59 71 11.2 1.9 21  
including 66 67 0.9 15.4 14  
MTLRC141 80 83 2.8 2.3 6  
MTLRC141 88 90 1.8 1.1 2 Ended in Mineralization
MTLRC142 82 86 3.7 2.4 9 Ended in Mineralization
MTLRC143 84 90 5.6 1.2 7 Ended in Mineralization
MTLRC157 143 165 19.6 2.7 53  
including 157 159 1.8 9.9 18  

Note: * The Matala deposit down hole lengths 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 has been used to define the boundary of the mineralized intersection. 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.

An independent review of the sampling programme was undertaken and found that the RC sampling and quality control procedures are appropriate and conform to industry standard procedures.

To view the Figure 1: Matala deposit, please visit the following link: http://media3.marketwire.com/docs/LGLMAP1217.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
    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