Luiri Gold Limited

Luiri Gold Limited

January 19, 2007 08:59 ET

Luiri Gold: Results of the Pilot Geophysics Programme at The Luiri Hills Project, Zambia

A pilot geophysical IP programme over the western nose of the Matala Dome mineralized structure has resulted in the definition of two follow up targets within 2km of the Dunrobin Deposit.

TORONTO, ONTARIO--(CCNMatthews - Jan. 19, 2007) - Luiri Gold Limited (TSX VENTURE:LGL) announced the initial results of a geophysical induced polarization ("IP") pilot study programme that was undertaken over the western nose of the Matala Dome mineralized structure including the measured Dunrobin gold Deposit. The programme has resulted in the identification of two strong open-ended geophysical anomalies (see figure 1) that will be targeted for follow up work. The first, in the south-east, is the strongest and is associated with a known gold soil target, while the second, in the east, is on a geological trend that may be preferential for gold mineralization. A third strong anomaly in the west is believed to be associated with a known geological feature that is not expected to be mineralized.

"The results of this geophysical programme, together with the results of the soil geochemical sampling programme reported previously, continue to support our view that the Matala Dome mineralized structure and surrounding region has great potential to host additional gold or copper-gold deposits that the Company expects to identify using modern and systematic exploration techniques," commented Mike Sperinck, President and CEO of Luiri Gold. "Especially when one realizes that we have only covered less than one third of the Matala Dome structure with the current soil geochemical sampling programme."

These highly successful soil sampling programmes identified the two known gold deposits, sizeable extensions to these deposits, and two new large anomalies. Management reacted to this success by instigating an aggressive soil sampling programme over the whole of the Matala dome structure. This soil sampling programme should be completed by mid-year, but results from sub-areas will be released as they become available.

Geophysical Programme

An initial gradient array IP pilot study was undertaken over the nose of the Matala Dome mineralized structure including the Dunrobin gold Deposit. The programme was designed to test the use of the IP technique for targeting the potential presence of mineralized zones and/or changes in the geology. The pilot study area was therefore defined to include known mineralized gold zones identified from drilling including the Dunrobin gold Deposit, targets from soil geochemical sampling, and important geological contacts.

Three major anomalies were identified, of which two were prioritized for follow-up work. The first occurs in the south-east coincident with a known soil gold target. The second is a new target in the east, which occurs within a geological trend known to be associated with gold mineralization. Soil sampling over this second target was completed in December 2006 with results pending. These targets require follow up exploration including more detailed geophysics. The strong anomaly in the west, shown on Figure 1, is believed to be associated with a known geological feature and is probably not mineralized.

The reason for the weaker signature at the Dunrobin gold Deposit is possibly due to the gossanous nature of the orebody mineralization near surface with the primary disseminated sulphide mineralization only beginning at about 100m below surface. Further interpretation is being carried out on the data.

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 an African-focused resource exploration company with a stated strategy of creating shareholder value through the discovery and exploitation of gold and copper-gold ore deposits in Zambia. Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, holds mineral tenements within southern-central Zambia covering approximately 2,400km2 of highly prospective exploration ground focused on the historic Dunrobin and Matala gold mines. 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 bitumen 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. The Kansanshi copper-gold project of First Quantum 350km north of Luiri Hills has been described as an IOCG deposit. Independent research has drawn similarities between the Dunrobin gold deposit and Kansanshi.

Luiri Gold has been active in Zambia since October 2003 and has conducted two years of exploration on its Zambian tenements, including drill programs that have resulted in an estimated resource of 108,000 ounces of gold in the indicated and 173,000 ounces in the inferred category according to JORC classification (1.6 million tonnes @ 2.1g/t and 1.3 million tonnes @ 4.1g/t respectively).

Luiri Gold's mineral tenements and the resource estimate are the subject matter of a Technical Report dated February 6, 2006 prepared pursuant to National Instrument 43-101 by Snowden Mining Industry Consultants Pty. Ltd. and entitled "Independent Technical Report on the Mineral Assets of Luiri Gold Mines Ltd.", available for review under the Company's profile at .


Michael Sperinck, President

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