Kinbauri Gold Corp.

Kinbauri Gold Corp.

September 04, 2007 11:50 ET

Kinbauri Bolsters El Valle Mine Development Team in Spain Anticipating Eventual Re-Start of Operations

OTTAWA, ONTARIO--(Marketwire - Sept. 4, 2007) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to announce that it has engaged Mr. Francisco Ruiz as Senior Environmental Officer of its wholly-owned subsidiary, Kinbauri Espana S.L. ("Espana"). Formerly employed by Rio Narcea Gold Mines, Ltd. ("RNGM") since 1997 as environmental and assay laboratory superintendent and metallurgist, Mr. Ruiz, will be in charge of environmental affairs, including standards for mine water discharge at Kinbauri's El Valle and Carles mining complexes in Asturias, NW Spain. While these facilities have been placed on care and maintenance, they presently are being utilized by Kinbauri for drilling and geotechnical assessment in preparation for the recommencement of production. In addition to his present responsibilities, Mr. Ruiz will manage the on-site preparation assay laboratories at El Valle and assist in directing the metallurgical processing at the El Valle mill when operations eventually recommence there.

Management Team at El Valle

Mr. Ruiz received an honours degree in chemistry from the University of Oveido in 1996. He has widespread experience in industrial pilot studies, plant testing, quality controls, waste water treatment, metallurgy and land reclamation. Subject to the eventual engagement of a senior mining engineer, Mr. Ruiz will provide the critical expertise to complete the management and technical team to recommence production at El Valle and Carles. He joins a senior team of professionals comprised of Mr. Jean Bailly, Espana's Vice-President, COO & Development/Mine Manager, with 30 years experience in mine development and management including the Cayeli Bakir in Turkey, Mobrun and the Chadbourne Mining Division of Noranda in Quebec; and Mr. Santiago Gonzalez, Espana's Chief Geologist and formerly Project Geologist, Project Manager and Chief Mine Geologist at El Valle and Carles since 1993 with RNGM. Mr. Gonzalez, a member of the European Federation of Geologists, is a qualified person under NI 4-101.

In addition, Kinbauri is pleased to announce the addition to its corporate head office of Mr. John H. Adams, P. Geo., a qualified person under NI 43-101, who received his B. Sc. (Honours) at Carleton University in 1971. He has extensive experience in planning, implementing and managing exploration programs, including the preparation of proposals, technical/qualification reports as well as having worked in the past as a consultant and manager for various projects in Canada, USA, Indonesia, China, Iran, Jamaica and Central America.


Kinbauri has approved the issuance of 145,000 stock options in total under its current Stock Option Plan to Ruiz and Adams at an exercise price of $0.75 expiring on July 3rd, 2010. These securities are subject to a four month hold period.

Program Funding/Financial Position

Kinbauri is completely funded to complete its $5.4M on-going program of exploration and development in the Rio Narcea Gold Belt, primarily at El Valle. Presently, the majority of its funds ($5,530,000) are held in high quality interest-bearing accounts with Canadian banks. As of the end of August, 503,365 euro were also on hand in Espana's accounts to service on-going costs.

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 a, where these developments will be discussed in detail. The recording is expected to be available on or after September 5th, 2007.

About Kinbauri: Kinbauri is a 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 recommencing operations at the mine and mill complex there. Kinbauri currently has 43,372,320 common shares issued and outstanding; 67,056,236 fully diluted.

About El Valle: The El Valle project was first identified in 1992 when several areas having significant gold mineralization were discovered. After the 1996 Feasibility Study by RNGM, additional gold deposits were discovered, including Area 107, Black Skarn North, Sienna, Charnela, Charnela South and Caolinas, and Area 208; these discoveries clearly indicate that the El Valle-Boinás area still has great potential for discovery of additional gold mineralization. El Valle-Boinas also has the potential to combine the mining of large tonnage, low grade deposits concurrently with lower tonnage, high grade deposits.

Kinbauri is targeting two highly mineralized zones, Area 107 and Black Skarn North, in its on-going exploration program as these zones have the potential for rapid identification of reserves to support a mining operation, due to their proximity to existing mine workings and apparent continuity of mineralization. As of March 21, 2007, Ore Reserves Engineering in a N.I. 43-101 compliant report estimated indicated resources of 12,000 ounces gold (38,000 tonnes at 9.8g Au/t) and inferred resources of 342,000 ounces gold (913,000 tonnes at 11.6g Au/t) for Area 107; it is open at depth and along strike. Black Skarn North has estimated inferred resources of 73,000 ounces gold and 5,000 tonnes copper (445,000 tonnes at 5.1g Au/t and 1% Cu) and is open to the east and west. Drilling priorities at Area 107 include extending the high grade mineralization at depth and extending it to the north and south, whereas drilling at the Black Skarn North focus on extending the continuity of the mineralization to the east and west. A 21-hole underground drill program totalling 7,000m is to be completed by the end of September 2007. The 2007 planned program also includes drifting at Area 107, including 150 meter access and 20 meters of drilling bays with a 15 meter testing drift, to be followed by definition drilling of 1,500 meters with one rig in November. As well, drifting will be undertaken concurrently in the Black Skarn area in the fall with a 300 meter decline and 50 meters of drilling bays to accommodate definition drilling of 3,000 metres, with two rigs slated to begin in November. A successful program will result in defined resources to support six years of production. To date, drill results as reported in Kinbauri releases of July 9th, 2007 and August 22nd, 2007 suggest that these objectives will be met. Kinbauri then plans to complete engineering studies to determine the mine development required to convert resources to reserves sufficient for three years production at El Valle mill's optimal production rates. Thereafter, the plans are to continue exploration in order to delineate resources and reserves at El Valle/Carles to allow a mining life beyond six years. Production is conditional on reserves being established and a feasibility study being completed. To find out more about 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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