Lero Gold Corporation

Lero Gold Corporation

February 26, 2007 08:24 ET

Lero Gold Intersects 1.29 g/t Au and 0.27% Cu Over 151 Metres Including 74 Metres of 1.95 g/t Au and 0.47% Cu at Its Taldybulak Porphyry Cu-Au Target

Lero Gold acquires the adjacent Barkol exploration licence

LONDON, UNITED KINGDOM--(CCNMatthews - Feb. 26, 2007) - Lero Gold Corp. ("Lero", or the "Company")(TSX VENTURE:LER) is pleased to announce drill results from the 100% owned Taldybulak porphyry copper-gold licence in Kyrgyzstan and the granting of the 232km2 Barkol exploration licence immediately to the west of Taldybulak.

Assay results have been received for the final hole (TBDD06-09) drilled at Taldybulak during November 2006. The hole intersected significant copper-gold mineralisation from 38m to a depth of 190 metres. The hole was collared in the central-western part of the orebody and drilled at -60 degrees on an azimuth of 100 degrees. The hole intersected significant high grade bornite-chalcopyrite mineralisation within a brecciated zone of the diorite stock that hosts the mineralisation.

Significant intersections Include;

Hole ID From (m) To (m) Interval (m) Au (g/t) Cu (%)
TBDD06-09 38 189.5 151.5 1.29 0.27
including 38 112.5 74.5 1.95 0.47
High gold grades have been cut to 10g/t.

The results to date confirm that the Taldybulak deposit contains broad and coherent copper-gold porphyry mineralisation at above-average gold grades for this type of deposit. Large areas of the system remain untested to date leading Lero and Gold Fields Exploration B.V. geologists to believe that Taldybulak has the potential to develop into a medium-to-high-tonnage deposit.

Mineralisation at Taldybulak occurs within an irregular-shaped multiphase upper Ordovician diorite-monzodiorite stock with dimensions of 1,400m by 1,000m that intrudes lower Ordovician andesitic volcaniclastics. The mineralisation occurs within a series of lenses up to 150m wide that collectively form an elliptical, east-west trending zone over an area of 1,100m by 600m centred on the intrusive stock. The mineralisation has been tested to, and remains open at depths of more than 500m from surface. 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.

Exploration work carried out by Lero during 2006 has identified an apparent and untested mineralised corridor extending four kilometres to the east where further porphyry-style mineralisation occurs. Lero plans to undertake an extensive drilling program commencing during spring 2007 to test the deposit at depth and to define the extents of the mineralised system, much of which remains untested to date. In addition, the eastern strike extension will be tested for repetitions of the mineralisation.

The Taldybulak Cu-Au Porphyry Project and the adjacent Barkol licence is located within the prolific Tien-Shan Gold Belt which is host to some of the world largest gold deposits including Muruntau with 170Moz, Kumtor with 17Moz and the giant Kalmakyr-Dalnee Cu-Au porphyry system. 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.

During February 2007, the Kyrgyz State Agency for Mineral Resources granted the 232km2 Barkol exploration licence to Talas Copper Gold, a 100% subsidiary of Lero Gold Corporation. The exploration licence is, located immediately to the west of Taldybulak and was acquired at no cost to the company. The license encompasses a further 22 strike kilometres of the Talas-Chemin volcanic arc, thus doubling the company's exposure to this highly prospective mineral trend. The Barkol licence contains numerous occurrences of known mineralisation, with one copper-gold molybdenum deposit occurring within a 2km2 excision from the license. The geology of the Barkol licence area is very similar to Taldybulak, being a continuation of lower Palaeozoic volcanics and sediments, however the eastern half of the tenement is partially overlain by a veneer of post mineralisation Devonian aged volcanics. The Company believes that the eastern part of the tenement has had little exploration for porphyry-style mineralisation due to the overlying volcanics. The Company plans to conduct detailed exploration over areas of known mineralisation on the tenement and apply geophysics to test for porphyry systems that may be concealed by the Devonian volcanics.

Lero has undertaken an estimated annual expenditure commitment on the Barkol licence of US$200,000.00, with exploratory work due to commence spring 2007.

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

"The strategic alliance, formed with Gold Fields Exploration B.V. in 2006, this re-confirmation of the potential of the Taldybulak project and the granting of the adjacent Barkol licence puts Lero in the position to continue to unlock and expand the resource through an intensive exploration programme planned to commence in early 2007."

Notes to Editors:

1. All work carried out on site was supervised by Doug Cook (Exploration Manager and a Qualified Person under National Instrument 43-101). All samples were analysed at Alex Stewart Assayers (ASA) in Kara Balta, Kyrgyzstan. ASA is certified to ISO 9001 2000 by Bureau Veritas Quality International. Gold analyses are by 30g fire assay with AAS finish and copper by aqua regia digestion with atomic emission spectrometry finish. Lero Gold operates a stringent QA/QC policy that includes external standard and blank samples included in each individual batch sent for analysis.

2. Gold Fields Exploration B.V. is an indirect wholly owned subsidiary of Gold Fields Limited.

3. Lero Gold Corporation (TSX VENTURE:LER) is a new 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.

For avoidance of confusion;

- The Taldybulak-Talas copper gold porphyry is a separate deposit from the Taldybulak Levoberezhny gold deposit previously owned by Central Asia Gold Limited, and

- 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

The Company is aggressively adding high quality properties to its portfolios in Kyrgyzstan, Kazakhstan and Russia. The Company is well-funded and strategically positioned to fully participate in the current favourable investment climate through solid technical advances, unique in-country expertise, and timely business initiatives. With senior management and excellent technical expertise, Lero Gold intends to aggressively explore and develop a portfolio of new projects and targets.

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

Contact Information

  • Lero Gold Corp., London, United Kingdom
    Nick Clarke
    President & CEO
    +44 (0)20 7518 3999
    Lero Gold Corp., London, United Kingdom
    Gavin Dallas
    Marketing and PR
    +44 (0)20 7518 3999
    Lero Gold Corp., Vancouver, Canada
    Patrick Elliott
    (604) 643-1744
    Email: info@lerogold.com
    Website: www.lerogold.com