Kinbauri Gold Corp.

Kinbauri Gold Corp.

September 23, 2005 11:38 ET

Kinbauri Gold Expands to Nevada

CARP, ONTARIO--(CCNMatthews - Sept. 23, 2005) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to announce the optioning of two gold properties in Nevada from Anchor Mineral Inc. of Wichita, Kansas. The two properties consist of 59 unpatented claims totalling 477 hectares and are located in proximity to known prolific gold camps in southwest Nevada.

The first property, Aztec, lies four kilometres to the southwest of the Goldfield mining district in Esmeralda County. The Northumberland, Manhattan, Round Mountain, Gold Hill, Tonopah and Goldfield mining districts all lie along the Central Nevada Caldera Trend. It has recently been reported that they collectively have produced over 22.6 million ounces of gold since discovery with 4.2 million ounces at Goldfield alone. Despite the completion of a number of widely spaced, shallow reverse circulation drill holes (values of 8.7g Au/t over 1.5m in jasperoid reported from one hole) at Aztec, a large 500m x 100m geochemical (gold in soil) anomaly remains untested. Ore grade values have also been reported from isolated, highly silicified grab samples at Aztec.

The second property is located south of the McCoy/Cove mining complex in Lander County. The McCoy/Cove mining complex was reported in 1993 to have had production of 64.1 million ounces of silver and 2.23 million ounces of gold. Both McCoy/Cove and the property are believed to lie on or adjacent to a northwest-bearing fracture system similar to those controlling deposits of the Carlin and Battle Mountain gold trends. Kinbauri's property hosts volcanoclastics at surface which are highly silicified and commonly anomalous in gold: outcrops of jasperoid contain values of up to 0.8g Au/t. In combination with structures conductive to mineralization, this suggests that underlying Paleozoic strata could host ore grade mineralization.

Previous exploration on both properties has been oriented to the discovery of shallow, low grade deposits. Kinbauri will be targeting deeper, higher grade deposits. Dr. Vern Rampton, Kinbauri's President comments, "These two exciting properties are favourably located relative to trends and structures known to host prolific gold producers in Nevada. We believe that the presence of wide-spread surface and near-surface silicification with low, but persistent, gold values define halos to underlying higher grade gold deposits. Our exploration will be focused on their discovery and definition."

The terms of the option agreements provide for payment to Anchor Mineral of US$3,000 upon signing, and a further US$4,500 within sixty days. Annual payments are to increase gradually until the fourth anniversary of the Agreement, at which time they will total US$56,000. All payments are to be credited as advances on Production Royalties. Production Royalties on Aztec are set at 31/4% with 13/4% available for incremental purchase by Kinbauri at a rate of US$225,000 per quarter percent. Royalties on the second property are set at 3% with 11/2% purchasable for a total of US$600,000. An additional one percent is to be paid on sums received in excess of US$550/ounce on gold sales and two percent on sums in excess of US$700/ounce. The agreements are subject to regulatory approval.

Kinbauri is a precious metals exploration company with properties located in Ontario, Quebec, Nevada and northwestern Spain. Completion of its first drilling program on its Corcoesto gold property in Spain is near and results are to be announced shortly. The Company has 9,469,189 common shares issued and outstanding and 10,342,189 fully diluted.

Dr. Vern Rampton, P. Eng. is a qualified person as defined by NI43-101: he has reviewed and approved the contents of this release.

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.

9,469,189 common shares issued and outstanding


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