Lero Gold Corporation

Lero Gold Corporation

July 09, 2007 10:17 ET

Lero Gold Corp.: Data Re-interpretation Yields Significant Upside at Taldybulak-Talas Cu-Au Porphyry Deposit, Kyrgyzstan

LONDON, UNITED KINGDOM--(Marketwire - July 9, 2007) - Lero Gold Corp. ("Lero", or the "Company") (TSX VENTURE:LER) is pleased to announce an update of ongoing work at the Taldybulak-Talas Cu-Au Porphyry project, north west Kyrgyzstan.

During the second quarter of 2007, Lero and Gold Fields Exploration B.V. ("Gold Fields") completed a comprehensive re-interpretation of geophysical and geochemical data previously collected at the Taldybulak project, as well as detailed petrographic and mineralogical analysis.

An infrared spectrometry study on diamond drill core from the 2005 and 2006 drilling programmes was undertaken to better understand alteration mineralogy and geometry within the system. The IR spectrometry study has indicated correlation of chlorite-epidote alteration with higher grade mineralised parts within the Taldybulak deposit. Re-processing of the geophysical data has given a strong indication that the system remains open to the north west where there has been no previous exploration. The re-processed geophysical data also corroborates the results of a 2006 geochemical survey which indicates that a second mineralised porphyry centre may be located beneath a thick soil profile and quaternary sediments approximately 2km east of Taldybulak (Taldybulak East).

Currently 3 drill rigs have been mobilised at Taldybulak with drilling underway and results expected by the end of Q3 or early Q4 2007. The current programme, consisting of 5,000m, is primarily aimed at testing the recently developed targets, confirming and extending areas of high grade mineralisation and amplifying the overall tonnage potential of the Taldybulak system. This will be carried out by drilling along strike in previously untested zones and new prospects delineated by the current geochemical and geophysical surveys.

A campaign is underway at the Taldybulak East prospect to excavate in excess of 70 shallow pits in order to sample and map the underlying bedrock within an extensive Au-Cu-Mo anomaly delineated during a 2006 soil geochemical survey. Historically, Taldybulak East has been subjected to very limited exploration due to an almost total absence of outcrop, however the recent re-interpretation of data indicates that the prospect may host a fault offset of the Taldybulak porphyry or an entirely separate porphyry body. A review of re-processed historical aeromagnetic data has also highlighted the possibility of a third intrusive centre located further to the east at the Dzhangiturmish prospect.

Lero has also commenced an Induced Polarisation (IP) and ground magnetic geophysical surveys to infill and extend areas over which data was acquired during 2005. A total of 90 line kilometres of IP and 10km2 of ground magnetic data will be collected and interpreted over the coming months.

The apparent success of the 2006 soil geochemical survey has prompted Lero to extend the former surveys and to undertake additional and extensive surveys on all other tenements within the Talas project. Samples will be collected over the coming 2-3 months and results are expected by the start of Q4 2007.

Mineralisation at Taldybulak occurs within an irregular-shaped multiphase upper Ordovician quartz diorite-dacite porphyry stock with dimensions of 1,400m by 1,000m that intrudes lower Ordovician andesitic volcaniclastics. New data suggests this envelope could be extended to 3,000m by 1,000m while the structure has been tested to and is still open below depths of 500m from surface.

The mineralisation in the main Taldybulak zone occurs within a series of lenses up to 150m wide that collectively form an ellipse-shaped, east-west trending zone over an area of 1,100m by 600m centred on the intrusive stock. Copper-gold mineralisation is associated with sheeted quartz and quartz-stockwork veins containing pyrite, chalcopyrite, bornite, molybdenite and native gold that occur within both the intrusive and host sediments. The mineralisation occurs at above average gold grades for this type of deposit. Large areas of the system remain untested to date leading Lero and Gold Fields geologists to believe that Taldybulak has the potential to develop into a medium to high tonnage deposit.

The Taldybulak-Talas Cu-Au Porphyry Project is located within the prolific Tien-Shan Gold Belt which is host to some of the worlds largest gold deposits including Muruntau with 170Moz and Kumtor with 17Moz. Numerous other gold and base metals deposits have been discovered in the Tien-Shan Belt, many of which are either being mined or still under investigation.

President and CEO of Lero Gold, Mr. Nick Clarke commented:

"In light of the recently re-interpreted data and new model we now have a better understanding of the geology of the Taldybulak deposit which assists us in planning the future exploration focus. Lero needs to target its expenditure in a balanced manner that will unlock the size potential of the deposit while also adding value to the areas of currently known mineralisation."

Notes to Editors:
1. Lero Gold Corporation (TSX VENTURE:LER) is a base and precious metal
exploration company led by a senior management team with extensive
expertise in mineral exploration and advanced project management. In
July, 2006 Oriel Resources Plc completed its previously announced
transfer and sale of its gold related assets into Lero Gold Corporation
('Lero') (formerly ELE Capital Corporation - 'ELE'). Lero resumed
trading on TSX Venture Exchange (TSX-V) on Thursday July 27, 2006 under
the trading symbol "LER". Lero Gold is currently seeking and evaluating
advanced exploration stage gold and base metal projects in Kazakhstan,
Kyrgyzstan and Russia. The Company is currently exploring two advanced
staged gold deposits in the Tien Shan gold belt in the Kyrgyz Republic.
2. All work carried out on site was supervised by Doug Cook (Exploration
Manager and a Qualified Person under National Instrument 43-101).
Samples of -80 mesh (-180micron) material weighing 100g were exported to
Ultratrace Laboratories in Perth, Western Australia for a 40g Aqua Regia
digest with ICP-MS and OES finish. Lero Gold Corporation operates a
stringent QA/QC policy that includes external certified standard samples
and duplicates in each individual batch sent for analysis.
3. For avoidance of confusion;
a. The Taldybulak-Talas copper gold porphyry is a separate deposit from
the Taldybulak Levoberezhny gold deposit previously owned by Central
Asia Gold Limited, and
b. The Talas Copper Gold Limited Liability Company, the holder of the
Lero owned Taldybulak licence, is a separate company from Talas Gold
Mining Company which is the owner of the Jerooy Gold project.
4. Gold Fields Exploration B.V. is an indirect wholly owned subsidiary of
Gold Fields Limited.
5. The TSX Venture Exchange does not accept responsibility for adequacy or
accuracy of this release.

The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this release.

Contact Information

  • Lero Gold Corporation
    Nick Clarke
    President & CEO
    +44 (0) 20 7514 0590
    Lero Gold Corporation
    Darryl Yea
    Non-Executive Chairman
    (604) 699-2458
    Lero Gold Corporation
    Gavin Dallas
    Marketing and PR
    +44 (0) 20 7514 0590
    Lero Gold Corporation
    Patrick Elliott
    Manager IR
    (604) 643-1744
    Email: info@lerogold.com
    Website: www.lerogold.com