Kinbauri Gold Corp.

Kinbauri Gold Corp.

December 18, 2006 09:53 ET

Kinbauri Announces More Positive Results From Picotos Vein Systems at Corcoesto

OTTAWA, ONTARIO--(CCNMatthews - Dec. 18, 2006) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to report the latest assay results received from drilling on the Picotos and northern Fonterremula vein systems at its Corcoesto gold project ("Corcoesto") in northwestern Spain. Intercepts reported below should be read in conjunction with previous results reported in Kinbauri's Press Release of October 19th, 2006. All holes were drilled at an inclination of 45 degrees; intercepts range from 80 to 95% true width. Drilling on the Picotos vein systems is being continued in view of favourable results received to date.

Picotos East: DDH06K22 on section 4050E was deepened to extend a zone marked by 5.04g Au/t over 4.65m in DDH06K23 on section 4000E. At depth, DDH06K22 intercepted 2.83g Au/t over 2.0m beginning at 91.2m and 2.89g Au/t over 5.6m beginning at 102.8m, including 5.91g Au/t over 1.0m and 5.83g Au/t over 1.4m.

Picotos West: Significant gold intercepts are listed below; system is open to west.

DDH Section From (m) To (m) Intercept (m) Au (g/t)
06K35 3600E 32.25 33.25 1.0 12.26
81.40 82.40 1.0 4.93
06K33 3650E 126.70 138.00 11.3 1.72
including 126.70 131.50 4.8 2.71
06K36 3700E 65.90 66.90 1.0 1.43
06K37 3750E 48.00 51.50 3.5 2.74
including 49.00 50.10 1.1 4.69
55.40 56.40 1.0 1.50
61.90 62.90 1.0 1.59
76.60 77.70 1.0 10.14
94.70 96.00 1.3 1.59
113.65 115.00 1.35 1.68
137.90 139.00 1.1 1.64
06K32 3800E 109.00 110.20 1.2 2.67
06K34 3850E 89.30 90.50 1.2 3.99

Fonterremula: Significant gold intercepts are listed below.

DDH Section From (m) To (m) Intercept (m) Au (g/t)
06K30 3825E 35.20 38.50 3.3 0.95
including 35.20 36.20 1.0 2.03
06K29 3895E 74.7 75.7 1.0 2.34
06K28 3925E 34.75 36.00 1.25 1.77
68.85 69.85 1.0 2.21

Results received from the shallow drilling at Picotos should allow a significant increase to the open pittable resources at Corcoesto.

As reported in the recent 43-101 compliant "Technical Report for the Corcoesto Gold Deposit, Galicia, Spain" by Alan C. Noble, a development decision could be met by increasing the current open-pittable resources at Corcoesto 25% to 35% (less than 100,000 ounces Au). The focus of the on-going drill program is to meet this objective by drilling prospective vein systems within the northern part of Corcoesto, namely Picotos, Montefurado and Fonterremula and extending the Peton de Lobo, Pozo del Ingles and Cova Crea vein systems within the southern part of Corcoesto. Preliminary indications are that the Peton de Lobo and Cova Crea extensions day-light on hill sides, which would facilitate mine access for these systems. Drilling at the east end of Peton de Lobo vein system has been initiated.

The program at Corcoesto is being supervised by Dr. C.F. Gleeson, Kinbauri's Vice-President of Exploration and a qualified person under N.I. 43-101. For details of Kinbauri's treatment of samples and quality control program, please refer to Kinbauri's press release of March 2nd, 2006.

For further details concerning defined resources and planned exploration refer to Kinbauri's press release of August 24th, 2006, the Resource Report and Kinbauri's 2006 Annual Report, all of which can be viewed on Kinbauri's web-site or alternatively on

El Valle/Carles: Regarding other corporate business concerning the proposed purchase of certain facilities and mineral assets in northern Spain from Rio Narcea Gold Mines Ltd. ("RNGM"), including the El Valle Plant, the El Valle Mine and the Carles Mine (see press release of October 30th, 2006): completion of the due diligence process has been extended until January 4th, 2007 to allow receipt and review of certain documents; all other requirements remain as stated with option exercise required by January 15th, 2007 and completion of purchase by March 31st, 2007.

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

Kinbauri is a junior gold exploration company with 11,429,189 common shares issued and outstanding and 13,524,689 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