Kinbauri Gold Corp.

Kinbauri Gold Corp.

January 11, 2006 09:17 ET

Kinbauri Announces First Half 2006 Exploration Program; Winter Drilling Planned at Corcoesto and Fiedmont

CARP, ONTARIO--(CCNMatthews - Jan. 11, 2006) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB) wishes to announce its exploration plans for early 2006 including drilling at its Corcoesto, Spain and Fiedmont, Quebec properties. Kinbauri has budgeted $565,000 for its early 2006 exploration campaign. It is well financed with over $1,450,000 in cash and liquid assets.

Kinbauri is planning to initiate a 2,100m plus drill program at Corcoesto in early February. Following an in-depth review of Corcoesto's geology and previous drilling results by Kinbauri's management and geological team in late December, it was determined to focus this winter's drilling program on the Pozo del Inglis ("Pozo") and Peton de Lobo ("Peton") vein systems. At Pozo, planned drill holes will target (i) high grade shoots where previous intercepts indicated values of 23.8g Au/t over 2m (05K2), 26.0g Au/t over 4m (COR-170) and 12.2g Au/t over 9m (COR-169), and (ii) a projected flexure to test for the presence of a widened and enhanced mineralized zone there. At Peton, where previous drill holes showed increasing grades at depth, e.g. 6.1g Au/t over 4m (DH5400), 7.8g Au/t over 3.8m (COR-202), 13.6g Au/t over 1m (COR-196), drilling will focus on extending high grade zones to depth. Shallow drilling is also planned for the Montefurado, Fonterremula, Picotos and Lampreira vein systems with drill targets to be confirmed following receipt of results from a systematic geochemical soil sampling program covering the northern part of Corcoesto and follow-up trenching; soil samples have been collected and forwarded to Activations Laboratories of Ancaster, Ontario for analysis.

A short drill program (210m ±) is planned for the Fiedmont PGE property near Val d'Or, Quebec in late January or February (timing subject to drill availability) to determine the extent and nature of the platinum group elements ("PGE") mineralization there. PGEs in grab samples have assayed up to 6.7 g/t and chip samples have assayed 1.9 g/t over 2m, 2.3 g/t over 4m and 5.7 g/t over 1m from three different showings on the property.

In Nevada, systematic geochemical soil sampling is planned over portions of the "Aztec" and "Kyla" properties to focus drilling later in 2006. Aztec is located along the Central Nevada Caldera Trend, about 6 km southwest of Goldfield. Kyla is located about 25 km south of the MCCoy Cove mine complex. Kinbauri has expanded its Kyla property to a total of 41 claims encompassing approximately 175 hectares. Over 140 claims have recently been staked by other parties contiguous to Kyla.

At Aztec, this winter's soil sampling program will cover an irregular-shaped area measuring about 1,600m by 750m. This will encompass a 1989 geochemical soil survey for gold of limited extent (650m by 200m), which defined a series of northeast- and north- trending gold anomalies (50-360 ppb). For the most part these anomalies have not been evaluated, but one drill hole (drilled in the early 1990s), some 180m southeast of one anomalous zone, intersected 8.7g Au/t over 1.5m beginning at a depth of 16.8m. Limited prospecting also uncovered gold mineralization (1.3 to 3.9g Au/t) in ryholitic crystal tuff. The mineralization was characterized by (i) pervasive drusy quartz fracture coatings and fillings with abundant fine veinlets of chalcedonic and crystalline quartz and (ii) anomalous values in Ag, As, Sb and Hg; all indicative of epithermal gold mineralization.

At Kyla, this winter's soil sampling program, which will cover an area measuring 850m by 250m, will focus on confirming the extent and trend of gold mineralization on the claims. A large number of rock samples taken from the claims are anomalous in gold (100 to 800 ppb). These samples were taken from a large (1,000m by 500m) quartz hot-spring system in Tertiary volcanoclastic rhylotic tuffs. These highly silicified rocks are also anomalous in As, Sb, Ag and Hg and occupy a NNE trending graben structure. The above geology indicates potential for a near surface epithermal deposit within the Tertiary strata or a higher grade gold deposit in the underlying Paleozic strata.

This press release was prepared by Dr. V.N. Rampton, P. Eng. in his capacity as a qualified person.

Kinbauri is a junior exploration company with 9,469,189 common shares issued and outstanding and 10,592,189 fully diluted.

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.


Contact Information