Kinbauri Gold Corp.

Kinbauri Gold Corp.

August 22, 2007 08:30 ET

Drilling at Kinbauri's El Valle Project Continues to Extend Gold/Copper Mineralization,

Intersects 8 Grams Gold per Tonne and 2% Copper Over 33.85 Meters

OTTAWA, ONTARIO--(Marketwire - Aug. 22, 2007) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to announce the second set of assay results from its on-going 7,000 m drill program at the El Valle project in northwestern Spain. Kinbauri is on track to meet its objective of defining sufficient resources to support six years of production, given reasonable conversion to reserves. Area 107 and Black Skarn North are being targeted for their continuity of gold and copper mineralization and proximity to the existing mining and milling infrastructure. Results from the second five holes are summarized in the table below.

HOLE(1) From To Interval(2) Au Ag Cu Zone(3)
(m) (m) (m) (g/t) (g/t) (%) Section
07KV1016 174.85 220.90 46.05 2.39 20.0 0.89 NBS &
including 196.55 204.65 8.10 5.68 56.5 2.24 1
including 208.60 213.70 5.10 6.38 17.4 1.24
07KV1014 106.25 110.30 4.05 7.97 2.3 0.18 A107W
Including 106.25 108.30 2.05 9.40 13.0 0.32 2
07KV1014 117.35 119.15 1.80 2.07 4.0 0.19
07KV1012 147.50 149.00 1.50 0.46 29.0 0.76 A107 W
/ 2
07KV1013 No Significant Results A107/12
07KV1011 64.80 67.25 2.45 7.10 47.1 1.29 NBS
07KV1011 242.40 243.80 1.40 1.49 8.0 0.54 NBS
07KV1011 253.85 257.25 3.40 1.36 4.2 0.32 12
07KV1011 261.30 264.65 3.35 4.50 8.0 0.21
07KV1009R 68.80 71.50 2.70 4.89 6.1 0.32 NBS &
07KV1009R 84.90 96.40 11.50 2.39 5.2 0.72 11
Including 84.90 91.50 6.60 2.96 6.7 0.92
07KV1009R 105.65 139.50 33.85 8.04 35.9 2.07
including 1 109.30 110.95 1.65 47.00 110.0 0.77
including 2 130.50 139.50 9.00 9.44 48.6 5.06
07KV1009R 178.20 183.50 5.30 2.69 11.2 1.08
including 178.20 180.40 2.20 5.52 20.3 1.91
(1) See Schedule A for relative location: (2) True thicknesses are
estimated to be 80% and 95% of interval for 1007KV1016 through
1007KV1014 and approximately 50% of interval for 1007KV1009R and
1007KV1016: (3) A107 - Area 107; NBS - Black Skarn North.

Schedule A:

Assays received to date from 07KV1009, 07KV1009R and 07KV1016 suggest that epithermal mineralization composing Area 107 has been superimposed on the Black Skarn, resulting in gold and copper enrichment of the skarn. Similarly, VAL 1038, which is on the same section as 07KV1014 (see Schedule A), includes a high grade interval of 17.4g Au/t and 2.46% Cu over 9.7m within skarn grading 8.09g Au/t and 1.67% Cu over 36.1m. Mineralized zones within 07KV1009R have separation of 25m from those in 07KV1009, confirming continuity of gold grades related to skarn and epithermal mineralization. Multiple enriched zones within the skarn may be due to splaying of Area 107 or to separate epithermally enriched structures.

These results also indicate that Area 107 mineralization extends westward beyond the previous known extent of Area 107. West of 07KV1016, Area 107 is expected to be off-set by a structure hosting the Charnela Zone (Indicated Resources of 45,000 ounces Au (82,000t at 17.0g Au/t) and Inferred Resources of 46,000 ounces Au (105,000t at 13.8g Au/t)); three holes previously drilled by Rio Narcea Gold Mines, S.L. ("RNGM") west of this structure are projected to be an extension of Area 107:

DDH Interval Assays Location
- VAL 1033 14.3m 11.0g Au/t and 0.90% Cu 30m west
Section1/Area 107
- VAL 1032 5.0m 10.0g Au/t and 0.05% Cu 90m west Section
1/Area 107
- VAL 2049 7.9m 13.4g Au/t and 3.40% Cu 160m west Section
1/Area 107

Development in the next quarter will provide an appropriate drilling platform for further definition of (i) mineralization in the sector containing the westward projection of Area 107 (open to the west and at depth) and (ii) the true extent of the Black Skarn.

Kinbauri has become aware that significant molybdenum values are present within selected lithologic units at El Valle and Carles; this is in addition to the known Mo mineralization at its Godan property where 0.15% Mo over 5.4m, including 0.45% over 28m, was reported (reference NI 43-101 Technical Report of March 21st, 2007; A complete review of RNGM's data base is in progress and critical exposed lithologic units are being sampled to determine the extent and significance of the molybdenum mineralization.

The underground drill program is on-going and should be completed in September, 2007. It is being supervised by Mr. Santiago Gonzalez, Kinbauri Espana's senior geologist with quality control being provided by Dr. C. F. Gleeson, P. Eng., Kinbauri's Vice-President of Exploration: both are qualified persons as defined by N.I. 43-101. Details of Kinbauri's Quality Assurance Program are reported in press release of July 19th, 2007. RNGM's Quality Assurance Program for its drill holes are reported in their press release of January 20th, 2006.

This press release was prepared by Dr. V. N. Rampton, P. Eng in his capacity as a qualified person. Dr. Rampton will record a "Beyond The Press Release" on the Company's official Investor Relations Site at, where these developments will be discussed in detail. The recording is expected to be available on or after August 27th, 2007.

About Kinbauri

Kinbauri is a TSXV - Tier 1 mineral exploration company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain with a view to re-starting operations at the mine and mill complex there, and to establish resources to support a mine and mill at Corcoesto in Galicia, Spain where it has an option to earn a 65 percent interest. It currently has 43,372,320 common shares issued and outstanding; 67,056,236, fully diluted.

About the Rio Narcea Gold Belt

This belt, which has been subject to multiple phases of mineralization common to most major mining camps, has present measured and indicated resources of 477,000 ounces gold and 26,000 tonnes copper (2,594,000 tonnes at 5.7g Au/t and 2,343,000 tonnes at 1.13% Cu) and inferred resources of 845,000 ounces gold and 11,600 tonnes copper (3,159,000 tonnes at 8.3g Au/t and 1,607,000 tonnes at 0.84% Cu), as estimated by Ore Reserves Engineering of Lakewood, Colorado in a NI43-101 technical report dated March 21st, 2007 and filed on Sedar on July 3rd, 2007. Kinbauri presently holds permits totaling 3,000 hc and investigation permits totaling 592 ha, covering the four main gold deposits at El Valle, Carles, La Brueva and Godan/Ortosa. All of the above-estimated resources are attributed to the El Valle and Carles deposits. With the exception of a surface drilling program targeting a near-surface extension of open-pittable resources at Carles and a Mo-Au target at Godan, Kinbauri's present plans are to concentrate drilling at El Valle in order to define resources and reserves towards mine production re-start. To find out more about the Rio Narcea Gold Belt and El Valle, please visit Kinbauri's web-site at


This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.


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