Lihir Gold Limited
ASX : LGL
NASDAQ : LIHR
TSX : LGG

Lihir Gold Limited

February 19, 2009 07:32 ET

LGL (Lihir Gold Limited): LGL Updates Reserves and Resources

PORT MORESBY, PAPUA NEW GUINEA--(Marketwire - Feb. 19, 2009) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") announces that the Company has increased its Measured and Indicated Resources in Cote d'Ivoire to approximately 1.4 million ounces following a successful exploration drilling campaign.

Indicated Resource at the Akissi So deposit, close to LGL's Bonikro mine and process plant, has been lifted from 123,000 oz of contained metal, to 352,000 oz, and Inferred Resource has increased from 8000 oz to 50,000 oz.

The drilling program has extended the identified mineralisation at Akissi So to an average depth of 120 metres, as well as including strike extensions to both the east and the west, taking the length of the strike to 1.1 kilometres. The ore body remains open at depth and along strike, and the average grade of the Indicated Resource is 3.37 g/t.

The expansion of the resource increases the potential for the deposit to be developed, with ore to be trucked to Bonikro for processing.

This may support an expansion of the capacity of the process plant, as well as extending the life of the operation. A summary of the Company's Mineral Resources in Cote d'Ivoire is set out below.



------------------------------------------------------------
In Situ Resources: Cote d'Ivoire
------------------------------------------------------------
Tonnes Average grade Contained ounces
(kt) (Au g/t) (kozs)
------------------------------------------------------------
Akissi-so
Indicated 3245 3.37 352
Inferred 512 3.06 50
------------------------------------------------------------
Assonji-so
Inferred 1044 2.9 98
------------------------------------------------------------
Dougbafla East
Inferred 2638 1.8 150
------------------------------------------------------------
Bonikro
Measured 7039 1.8 412
Indicated 11540 1.7 635
Inferred 6000 1.6 318
------------------------------------------------------------

1) Figures for Assonji-so, Dougbafla East and Bonikro are as previously
stated in public releases and have not been adjusted.
2) Bonikro resources have not been adjusted to account for depletion
during mining in 2008.
3) As at December 31, LGL's interest is 90% of Bonikro, and 98% of the
other exploration assets listed.
4) A cut-off grade of 0.7 g/t has been applied.
5) The number of contained ounces does not indicate the ounces that will
be ultimately recovered. The ounces ultimately recovered and available
for sale depends on whether, and to the degree which, mineral resources
are converted ore reserves.


LGL's current exploration holdings in Cote d'Ivoire consist of 9 granted exploration licences covering 4800 square kilometres and a further 20 licences under application covering 14,000 square kilometres. A number of these licences under application are expected to be granted in the current year which will increase the available area for exploration to 12,000 square kilometres.

Further exploration is being undertaken at a number of other locations in Cote d'Ivoire, with encouraging results being recorded at Didievi, and at Tehini West.

To view the figure included in this press release, please visit the following link: http://media3.marketwire.com/docs/LGL0219.pdf.

Didievi Permit

A first pass RC drill programme has been completed on the Blaffo Guetto gold in soil anomaly. A total of 10,000 metres (119 holes) was drilled, identifying mineralisation with a strike length of 1.8 kilometres. A number of significant intersections were produced, including 15 metres at 6.9 g/t, 40 metres at 2.35 g/t, and 31 metres at 1.82 g/t.

Detailed drilling results are included in Appendix One.

Tehini West Permit

Soil sampling, involving 11,000 samples, has identified two extensive anomalies, including one which has a strike length of 16 kilometres by 5.5 kilometres, and one with a strike length of 4 kilometres by 5.5 kilometres. In-fill soil sampling is under way to identify potential drill targets.

Lihir Island Update

At Lihir Island, further exploration work has been carried out in the area between the Lienetz and Kapit pits. Results continue to support a possible extension to resources in that area. Further exploration is scheduled over the coming period, with an additional 8000m of drilling planned. The results will be evaluated in the next resource estimation scheduled for release in 2010. A full list of drilling results is included in Appendix One.

Lihir Island Resource and Reserve Update

Meanwhile, the resource and reserve have been restated to account for depletion since the 2007 statement, and following adjustments to gold price and cost assumptions.

Lihir Island Reserves

Total Reserves at Lihir Island, including stockpiled ore, stood at 21.8 million ounces at December 31, 2008, ranking Lihir Island as one of the largest gold reserves in the world.

The Reserve has reduced by 1.1 million ounces from 22.9 million ounces at December 2007. The movement in reserves was mainly due to mining depletion. Increases in reserves flowing from a rise in the gold price assumption to $675/oz were largely offset by rising cost inputs, revised cost allocations and adjustments to cut-off grades and pit shell designs.

To view the second figure included with this press release, please visit the following link: http://media3.marketwire.com/docs/significant%20intersections%20-%20Q4%202008.pdf.

The tables below set out the reserves as at December 31, 2008, and for comparison purposes, the prior reserve, as at December 31, 2007.



--------------------------------------------------------------------
Ore Reserves: Lihir Island, December 31, 2008
--------------------------------------------------------------------
Tonnes Average grade Contained ounces
(millions) (Au g/t) (mozs)
--------------------------------------------------------------------
Probable 180.3 2.94 17.0

Stockpiled ore (Proved) 59.4 2.48 4.7
--------------------------------------------------------------------
Total 239.6 2.83 21.8
--------------------------------------------------------------------


--------------------------------------------------------------------
Ore Reserves: Lihir Island, December 31, 2007
--------------------------------------------------------------------
Tonnes Average grade Contained ounces
(millions) (Au g/t) (mozs)
--------------------------------------------------------------------
Probable 200.4 2.87 18.5

Stockpiled ore (Proved) 53.8 2.52 4.4
--------------------------------------------------------------------
Total 254.2 2.80 22.9
--------------------------------------------------------------------

1) Reserves quoted for December 31, 2008 are those remaining below
the December 31, 2008 mining surface, with the December 2008 ultimate
pit design, based on the December 2007 Resource model.
2) Cut-off grades at December 31, 2008, for direct feed ore has been
reduced from 1.38 g/t to 1.30 g/t, and cut-off grade for flotation feed
ore has been increased from 0.87 g/t to 1.26 g/t. This follows
adjustments in cost allocations.
3) Stockpile totals reflect ore above cut-off on stockpile at 31 December,
2008.
4) Rounding, conforming to the JORC Code, may cause some computational
discrepancies.


Lihir Island Resources

The tables below set out Resources at Lihir Island at December 31, 2008, and at the prior Resource Statement as at December 31, 2007.

Resources in the 12 months to December 31 were lower than the prior period due mainly to mining depletion and increases in cut-off grades following changes to cost assumptions and allocations.



---------------------------------------------------------------------
Mineral Resources: Lihir Island, December 31, 2008
---------------------------------------------------------------------
Tonnes Average grade Contained ounces
(millions) (Au g/t) (mozs)
---------------------------------------------------------------------
Measured 59.4 2.48 4.7
Indicated 324.7 2.71 28.2
Total M&I 384.1 2.67 32.9
Inferred 46.4 2.30 3.4
---------------------------------------------------------------------


---------------------------------------------------------------------
Mineral Resources: Lihir Island, December 31, 2007
---------------------------------------------------------------------
Tonnes Average grade Contained ounces
(millions) (Au g/t) (mozs)
---------------------------------------------------------------------
Measured 53.8 2.52 4.4
Indicated 392.8 2.45 30.9
Total M&I 446.6 2.46 35.3
Inferred 63.4 1.88 3.8
---------------------------------------------------------------------

1) December 2008 cut-off grade of 1.20 g/t. December 2007 cut-off
grade of 0.87 g/t.
2) Rounding, conforming to the JORC Code, may cause some computational
discrepancies.
3) The number of contained ounces does not indicate the ounces that will
be ultimately recovered. The ounces ultimately recovered and available
for sale depends on whether, and to the degree which, mineral resources
are converted to ore reserves.


Forward Looking Statements

This document may contain certain forward-looking statements, including but not limited to (i) estimated reserves, (ii) anticipated production profiles and characteristics, (iii) expected capital requirements, (iv) forecast cost profiles or (iv) plans, strategies and objectives of management. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Lihir Gold Limited ("LGL"), which may cause actual results to differ materially from those contained in this announcement. Important factors that could cause actual results to materially differ from the forward looking statements in this presentation include but are not limited to the market price of gold, anticipated ore grades, tonnage, recovery rates, production and equipment operating costs, the impact of foreign currency exchange rates on cost inputs and the activities of governmental authorities in Papua New Guinea and elsewhere, as set forth more fully under the caption "Risk Factors" in LGL's most recent Annual Report on Form 20-F, which has been filed with the US Securities and Exchange Commission ("SEC") and the Ontario Securities Commission. Forward looking statements are only given as of the date of this report and LG: disclaims any obligations to update or revise the forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Gold reserve and resource estimates are expressions of judgement based on knowledge, experience and industry practice, and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as gold prices, cut-off grades and operating costs, which may prove to be inaccurate. Accordingly, no assurance can be given that the indicated amount of gold will be recovered or at the rates estimated. LGL can therefore give no assurances that any of the estimates, production profiles, capital, cost profiles and plans will not materially differ from the statements contained in this release and their inclusion in this document should not be regarded as a representation by any person that they will be achieved.

The material contained in this document is general background information about LGL's activities as of the date of the document. It is information given in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

Competent Person

The information in this report that relates to Exploration Results and Mineral Resources at Lihir Island and at Akissi-So in Cote d'Ivoire is based on information compiled by Mr Roy Kidd.

Mr Roy Kidd is a member of the Australian Institute of Geoscientists and is a full time employee of Lihir Services Australia Pty Ltd (LSA) in the role of Principal Geologist. LSA provides services to LGL pursuant to a Managed Services Agreement. Mr Roy Kidd has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Roy Kidd consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Ore Reserves at Lihir Island is based on information compiled by Mr David Grigg. Mr David Grigg is employed by Lihir Gold Limited in the role of Superintendent Mine Planning for the company. David Grigg has sufficient experience, which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". David Grigg consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. Mr Grigg is the qualified person for purposes of Canadian NI43-101 with respect to Mineral Reserves at Lihir Island and has verified the data disclosed with respect thereto.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves for the Assonji So, Dougbafla East and Bonikro projects was compiled by Mr Morgan Hart. Mr Hart is a member of The Australian Institute of Mining and Metallurgy and was a full time employee of Equigold NL at the time Resource Estimates were made. Mr Hart has sufficient experience, which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Morgan Hart consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Hart is the Qualified Person for purposes of Canadian NI 43-101 with respect to Exploration Results, Mineral Resources or Mineral Reserves for Assonji So, Dougbafla East and Bonikro projects and has verified the data disclosed with respect to thereto.

This report is to be read in accordance with and subject to LGL's most recently filed updated reserves and resources statement available from LGL's website www.lglgold.com or on the company announcements page of the ASX www.asx.com.au.

Note to U.S. Investors

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a SEC company can economically and legally extract or produce. LGL uses certain terms in this document, such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.

U.S. Investors are urged to consider closely the disclosure in LGL's most recent Form 20-F, which may be secured from LGL, or from the SEC's website at www.sec.gov/edgar.shtml.

Note to Canadian Investors / NI 43 - 101 Statement

Canadian Investors - for further information in relation to the calculation of reserves and resources with respect to LGL's Lihir operation, please refer to the Lihir Gold Limited (TSX:LGG) Technical Report (NI 43-101) dated 18 September 2007 available on SEDAR (www.sedar.com).

Mineral Reserves and Mineral Resources included herein are presented in accordance with the JORC Code. If presented in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, the Mineral Reserve and Mineral Resource presentation would be materially same.

The Reserve has reduced by 1.1 million ounces from 22.9 million ounces at December 2007. The movement in reserves was mainly due to mining depletion.

Increases in reserves flowing from a rise in the gold price assumption to $675/oz were largely offset by rising cost inputs, revised cost allocations and adjustments to cut-off grades and pit shell designs.



Appendix One

Cote d'Ivoire drilling results - significant intersections.

This data is included for the purposes of full disclosure.
Int-
Fr- er Au
Project Prospect Hole ID N E om To val ppm

DIDIEVI Blaffo Guetto DRC017 749 630 279 902 16 27 11 1.88
DIDIEVI Blaffo Guetto DRC031 749 423 279 817 12 36 24 1.41
DIDIEVI Blaffo Guetto DRC032 749 456 279 791 18 42 24 1.71
DIDIEVI Blaffo Guetto DRC034 749 513 279 736 21 29 8 2.78
DIDIEVI Blaffo Guetto DRC042 749 245 279 722 74 77 3 5.43
DIDIEVI Blaffo Guetto DRC043 749 272 279 688 29 36 7 2.13
DIDIEVI Blaffo Guetto DRC045 749 328 279 632 41 51 10 1.25
DIDIEVI Blaffo Guetto DRC049 749 442 279 240 25 31 6 2.55
DIDIEVI Blaffo Guetto DRC059 748 783 279 599 17 20 3 3.42
DIDIEVI Blaffo Guetto DRC074 749013 279095 1 2 1 1.19
44 47 3 3.24
64 66 2 2.56
DIDIEVI Blaffo Guetto DRC079 748790 279040 26 27 1 1.06
33 37 4 1.34
DIDIEVI Blaffo Guetto DRC080 748816 279013 30 32 2 1.54
49 51 2 1.05
DIDIEVI Blaffo Guetto DRC081 748926 278904 5 6 1 3.59
47 52 5 2.17
DIDIEVI Blaffo Guetto DRC082 748901 278928 66 69 3 1.81
DIDIEVI Blaffo Guetto DRC085 748842 278983 4 42 38 1.01
46 61 15 6.9
DIDIEVI Blaffo Guetto DRC096 748207 279618 67 70 3 1.13
DIDIEVI Blaffo Guetto DRC107 749593 279931 62 69 7 1.92
DIDIEVI Blaffo Guetto DRC108 749486 279762 20 60 40 2.35
DIDIEVI Blaffo Guetto DRC109 749423 279812 14 22 8 1.96
34 51 17 2.14
63 72 9 1.49
DIDIEVI Blaffo Guetto DRC113 749295 279664 35 43 8 3.1
60 80 20 2.05
DIDIEVI Blaffo Guetto DRC114 749353 279603 33 36 3 4.74
45 54 9 1.35
DIDIEVI Blaffo Guetto DRC122 748815 279010 40 53 13 1.08
DIDIEVI Blaffo Guetto DRC124 749173 279169 19 50 31 1.82
DIDIEVI Blaffo Guetto DRC126 748418 279413 23 27 4 7.51


Lihir Island - significant intersections, Q4 2008.
Au
Hole ID East North RL Azmiuth Dip TD From To g/t S% Interval
DDHL1539 9388 4927.97 1026 180 -65 450 46 52 3.41 7.87 6m @
3.41g/t Au
& 7.87% S
74 84 1.38 5.51 10m @
1.38g/t Au
& 5.51% S
110 122 2.93 2.52 12m @
2.93g/t Au
& 2.52% S
134 184 3.21 3.11 50m @
3.21g/t Au
& 3.11% S
206 210 1.95 0.87 4m @
1.95g/t Au
& 0.87% S
234 248 1.79 2.70 14m @
1.79g/t Au
& 2.7% S
266 274 2.66 2.68 8m @
2.66g/t Au
& 2.68% S
376 384 3.03 3.40 8m 3.03g/t
Au& 3.4% S
DDHL1540 9432.4 4918.3 1022 360 -70 210 7 12 1.81 10.30 4.8m @
1.81 g/t
Au& 10.3%S
72 194 3.38 4.63 122m @
3.38g/t Au
& 4.63% S
202 210 2.59 4.13 8m @
2.59g/t Au
& 4.13% S
DDHL1541 9354.2 4946.88 1031 180 -65 500 20 26 2.57 9.45 6m @
2.57g/t Au
& 9.45% S
100 188 3.25 3.20 88m @
3.25g/t Au
& 3.2% S
228 234 4.89 3.53 6m @
4.89g/t Au
& 3.53% S
346 372 1.74 2.55 26m @
1.74g/t Au
& 2.55% S
396 412 2.14 1.52 16m @
2.14g/t Au
& 1.52% S
424 430 1.43 2.42 6m @
1.43g/t Au
& 2.42% S
446 464 2.18 2.91 18m @
2.18g/t Au
& 2.91% S
DDHL1542 9492.6 4954.56 1005 360 -70 400 64 82 2.18 4.62 18m @
2.18g/t Au
& 4.62% S
96 104 2.84 9.66 8m @
2.84g/t Au
& 9.66% S
120 196 2.18 5.52 76m @
2.18g/t Au
& 5.52% S
220 238 1.38 3.50 18m @
1.38g/t Au
& 3.5% S
DDHL1543 9211.3 4884.3 1050 360 -85 300 132 172 3.17 6.38 40m @
3.17g/t Au
& 6.38% S
180 188 1.48 4.43 8m @
1.48g/t Au
& 4.43% S
220 228 4.95 4.83 8m @
4.95g/t Au
& 4.83% S
242 248 1.75 5.08 6m @
1.75g/t Au
& 5.08% S
262 266 1.84 5.63 4m @
1.84g/t Au
& 5.63% S
284 294 2.29 4.32 10m @
2.29g/t Au
& 4.32% S
DDHL1544 9176.9 4871.65 1051 360 -75 300 7 14 2.19 0.91 7m @
2.19g/t Au
& 0.91% S
78 86 1.67 4.41 8m @
1.67g/t Au
& 4.41% S
130 144 2.55 3.57 14m @
2.55g/t Au
& 3.57% S
190 244 2.50 4.09 54m @
2.5g/t Au
& 4.09% S
DDHL1546 9250.9 4894.07 1050 360 -85 283 36 54 1.38 5.66 18m @
1.38g/t Au
& 5.66% S
204 210 2.71 3.70 6m @
2.71g/t Au
& 3.7% S
228 238 2.51 5.28 10m @
2.51g/t Au
& 5.28% S
246 258 1.89 4.92 12m @
1.89g/t Au
& 4.92% S
DDHL1547 9455 4977 1005 360 -65 400 38 212 3.74 5.81 174m @
3.74g/t Au
& 5.81% S
230 236 2.92 2.69 6m @
2.92g/t Au
& 2.69% S
274 308 1.93 3.27 34m @
1.93g/t Au
& 3.27% S
DDHL1545 9148 4867.86 1052 180 -85 400 20 38 1.87 7.57 18m @
1.87g/t Au
& 7.57% S
94 102 1.84 5.52 8m @
1.84g/t Au
& 5.52% S
134 144 1.86 4.26 10m @
1.86g/t Au
& 4.26% S
152 206 4.38 4.00 54m @
4.38g/t Au
& 4% S
222 234 1.61 4.03 12m @
1.61g/t Au
& 4.03% S
246 254 1.92 4.29 8m @
1.92g/t Au
& 4.29% S
276 320 2.18 3.54 44m @
2.18g/t Au
& 3.54% S
360 380 2.05 2.41 20m @
2.05g/t Au
& 2.41% S
DDHL1548 9184.3 4708.34 1037 180 -75 280 152 68 2.23 4.57 16m @
2.23g/t Au
& 4.57% S
204 232 1.70 10.18 28m @
1.7g/t Au
& 10.18% S
DDHL1394 9120.2 4986.58 1010 310 -60 350 94 98 2.23 3.33 4m @
2.23g/t Au
& 3.33% S
114 118 9.15 3.05 4m @
9.15g/t Au
& 3.05% S
128 350 4.58 5.83 222.3m @
4.58g/t Au
& 5.83% S

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