Kinbauri Gold Corp.

Kinbauri Gold Corp.

July 13, 2007 09:35 ET

Kinbauri Receives TSXV Final Approval for Acquisition of Rio Narcea Gold-Copper Assets

OTTAWA, ONTARIO--(Marketwire - July 13, 2007) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to announce that further to its press release of July 4, 2007, it has received final approval from the TSX Venture Exchange for the acquisition of the El Valle Mill and Mine, Carles Mine, auxiliary facilities and La Brueva and Godan properties in the Rio Narcea Gold Belt of Asturias, northwestern Spain (the "Assets").

In connection with the approval process, Kinbauri has filed a NI 43-101 compliant Technical Report prepared by Alan Noble, P.E., of Ore Reserves Engineering ("ORE") with respect to the Assets, and a Filing Statement (TSXV Form 3D2), both of which are available at In addition, shareholder approval of the transaction has been obtained by way of written consent of at least 60% of its shareholders.

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 re-starting operations at the mine and mill complex, 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.

About the Rio Narcea Gold Belt: This belt, which has been subjected 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. Kinbauri presently holds permits totaling 3,000 hc and investigation permits totaling 592 hc, 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 allowing mine production to re-start.

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 Rio Narcea Gold Mines, Ltd., additional gold deposits were discovered, including Area 107, Black Skarn North, Sienna, Charnela, Charnela South and Caolinas, and Area 208. Discovery of these deposits clearly indicates that the El Valle-Boinás area still has great potential for discovery of additional gold mineralization. Some locations may have 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 has 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. The 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 will include following the high grade mineralization at depth and extending it to the north and south, whereas drilling at the Black Skarn North will 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; initial results will be available prior to the end of July. 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 in ores, 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. 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.

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


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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