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

Lihir Gold Limited

February 28, 2008 17:02 ET

LGL (Lihir Gold) Reports Promising Drilling Results at Lihir Island

UPDATES RESERVES AND RESOURCES

BRISBANE, QUEENSLAND, AUSTRALIA--(Marketwire - Feb. 28, 2008) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") is pleased to report encouraging results from an ongoing drilling program at Lihir Island, which will lead to an increase in the current resource estimate.

Drilling results received from holes targeting an area east-northeast of planned mining development included the following intercepts:

- 86 metres at 3.96 grams per tonne

- 210 metres at 3.40 grams per tonne

- 101 metres at 2.99 grams per tonne

- 94 metres at 3.02 grams per tonne.

- 186 metres at 2.84 grams per tonne

- 138 metres at 2.60 grams per tonne

These intercepts were returned from drill holes located outside of the existing resource. A table setting out the full results is included at Appendix One. Additional drilling is to be carried out this year, with results received to date indicating the likelihood of significant resource increases in this area.

To view Map, please visit the following link: http://media3.marketwire.com/docs/lihirmap.pdf

The company has also restated reserves and resources at the Lihir Island operation to account for mining depletion over the past 12 months. At December 31, 2007, resources totalled 35.3 million ounces, including reserves of 22.9 million ounces but excluding inferred resources of 3.8 million ounces, making Lihir Island one of the largest gold deposits on earth.

These estimates are based on the same assumptions that were used to calculate the 2006 resource and reserve. In particular, the gold price and cut-off grade assumptions remain unchanged. The restatement does not take into account the planned process plant expansion at Lihir Island. The impact of this expansion will be announced later this year, following optimisation of the mine plan.



The following table sets out the reserves as at December 31, 2007.
---------------------------------------------------------------
Reserve Statement, Lihir Island
---------------------------------------------------------------
Average Contained
Reserve Tonnes grade ounces (3)
Ore Reserves(1)(5)(6) Category (millions) (Au g/t) (millions)
---------------------------------------------------------------
Reserves(2) Proved 0 0 0
---------------------------------------------------------------
Probable 200.4 2.87 18.5
---------------------------------------------------------------
Sub total 200.4 2.87 18.5
---------------------------------------------------------------
Stockpiles Ore(4) Proved 53.8 2.52 4.4
---------------------------------------------------------------
Total Reserves 254.2 2.80 22.9
---------------------------------------------------------------
---------------------------------------------------------------


(1) Reserve tonnages have been depleted during 2007 by mining activity. Reserves quoted are those remaining below the 31 December 2007 mining surface, within the December 2007 ultimate pit design, based on the December 2005 resource model.

(2) Cut-off grade for direct autoclave feed material is 1.38 g/t Au and for flotation feed 0.87 g/t Au

(3) The reserves reflect an assumed life-of-mine gold price of US$475 per ounce. The number of contained ounces does not indicate the ounces that will be ultimately recovered.

(4) Stockpile totals reflect ore above cut-off on stockpile at 31 December 2007

(5) Rounding, conforming to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), may cause some computational discrepancies.

(6) 2006 reserve was 258.5 Mt at 2.83 g/t for 23.6M oz Au (US$475 oz). The cut-off grades used for the 2006 reserve were 1.38 g/t for direct autoclave feed material and 0.87 g/t for flotation feed.

The following table provides the 2006 statement for comparison purposes.



Lihir Island Ore Reserve 2006
-------------------------------------------------------------------------
Reserve Tonnes Average Contained
Category (Millions) Grade Ounces
(Au g/t) (Millions)
-------------------------------------------------------------------------
Reserves at 31 December 2006 Probable 212.0 2.89 19.7
-------------------------------------------------------------------------
Stockpiled Ore Proved 46.5 2.57 3.8
-------------------------------------------------------------------------
Total Reserves 258.5 2.83 23.6
-------------------------------------------------------------------------


The comparison shows a reduction of 11.6Mt in the pit reserves during 2007
and a 7.3Mt increase in stockpile reserves, equating to an overall decrease
of 4.3Mt of ore and 700,000 ounces of contained gold.

--------------------------------------------------------------------
Resource Statement, Lihir Island
--------------------------------------------------------------------
Identified Average Contained
Mineral Resource Tonnes grade ounces(3)
Resource(1)(2)(4) Category (millions) (Au g/t) (millions)
--------------------------------------------------------------------
Resources at
31st December
2007(1)(5) Measured 53.8 2.52 4.4
--------------------------------------------------------------------
Indicated 392.8 2.45 30.9
--------------------------------------------------------------------

--------------------------------------------------------------------
Total Resources 446.5 2.49 35.3
--------------------------------------------------------------------
--------------------------------------------------------------------


(1) Cut-off grade 0.87 g/t. Rounding, conforming to the JORC Code, may cause some computational discrepancies

(2) Resources for the period have been depleted by mining

(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 the degree to which, mineral resources are converted to ore reserves

(4) 2006 Resource was 520.8 Mt at 2.42 g/t for 40.5M oz Au

(5) Inferred Mineral Resources are 63.4 million tonnes with average grade of 1.88 Au g/t for 3.8 million contained ounces.

The following table sets out the 2006 Resource statement for comparison purposes. It shows that during 2007 there has been a reduction of 10.2 Mt of ore (excluding inferred resources) for 1.32 Mozs of contained gold.



Lihir Island Mineral Resources 2006

------------------------------------------------------------------------
Average Contained
Resource Tonnes grade ounces
Category (millions) (Au g/t) (millions)
------------------------------------------------------------------------
2006 Resource Measured 46.5 2.57 3.8
------------------------------------------------------------------------
Indicated 410.2 2.48 32.7
------------------------------------------------------------------------
Total Resources 456.7 2.53 36.5
------------------------------------------------------------------------

(i) Inferred Mineral Resources were 64.1 million tonnes with average grade
of 1.89 Au g/t for 3.9 million contained ounces.


For further information in relation to the calculation of reserves and resources, please refer to the Lihir Gold Limited (TSX:LGG) Technical Report (NI 43-101) dated 18 September 2007 available on SEDAR (http://www.sedar.com).

The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Roy Kidd who is a member of the Australian Institute of Geoscientists, and David Grigg who is a member of the Australian Institute of Mining and Metallurgy.

Roy Kidd 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. 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". Roy Kidd consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

David Grigg is a full time employee of 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 Exploration Results, 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.

Appendix One

Significant intersections - January 2008



---------------------------------------------------------------
Hole ID Interval From To
(m) (m)
---------------------------------------------------------------
DDHL1496 16m @ 1.86g/t Au & 5.34% S 8 24
4m @ 2.58g/t Au & 7.77% S 80 84
8m @ 2.62g/t Au & 7.52% S 102 110
22m @ 5.56g/t Au & 10.69% S 144 166
36m @ 4.14g/t Au & 7.32% S 168 204
16m @ 2.19g/t Au & 4.09% S 214 230
18m @ 3.52g/t Au & 1.71% S 260 278
DDHL1497 4m @ 2.77g/t Au & 7.3% S 10 14
12m @ 3.85g/t Au & 14.37% S 26 38
18m @ 2.46g/t Au & 7.22% S 78 96
6m @ 5.77g/t Au & 7.35% S 104 110
26m @ 11.3g/t Au & 6.41% S 218 244
18m @ 4.06g/t Au & 3.23% S 248 266
DDHL1499 4m @ 15.64g/t Au & 10.13% S 12 16
8m @ 3.94g/t Au & 8.23% S 20 28
14m @ 7.58g/t Au & 6.87% S 40 54
14m @ 1.46g/t Au & 6.86% S 78 92
10m @ 1.35g/t Au & 2.93% S 104 114
8m @ 2.33g/t Au & 7.97% S 150 158
48m @ 6.19g/t Au & 6.9% S 182 230
DDHL1501 16m @ 1.62g/t Au & 3.82% S 72 88
22m @ 2.22g/t Au & 6.53% S 176 198
24m @ 1.44g/t Au & 2.76% S 226 250
14m @ 2.24g/t Au & 3.33% S 280 294
DDHL1502 10m @ 1.68g/t Au & 7.19% S 6 16
16m @ 6.38g/t Au & 7.77% S 24 40
10m @ 2.14g/t Au & 6.94% S 52 62
8m @ 2.92g/t Au & 12.95% S 94 102
52m @ 2.83g/t Au & 9.43% S 134 186
4m @ 2.62g/t Au & 8.83% S 194 198
24m @ 4.72g/t Au & 6.03% S 230 254
14m @ 4.15g/t Au & 3.49% S 330 344
DDHL1503 8m @ 4.06g/t Au & 8.33% S 30 38
20m @ 3.58g/t Au & 10.43% S 52 72
88m @ 4.22g/t Au & 8.21% S 80 168
36m @ 3.93g/t Au & 7.21% S 176 212
10m @ 7.25g/t Au & 4.12% S 222 232
DDHL1504 4m @ 1.81g/t Au & 5.4% S 82 86
6m @ 1.5g/t Au & 6.38% S 98 104
38m @ 2.78g/t Au & 5.06% S 116 154
94m @ 3.02g/t Au & 4.28% S 156 250
8m @ 1.45g/t Au & 1% S 262 270
18m @ 1.44g/t Au & 0.58% S 280 298
DDHL1505 25.8m @ 2.44g/t Au & 6.44% S 4.2 30
58m @ 1.99g/t Au & 5.76% S 54 112
10m @ 2.65g/t Au & 4.42% S 120 130
6m @ 1.81g/t Au & 1.76% S 144 150
8m @ 1.66g/t Au & 2.81% S 154 162
6m @ 1.62g/t Au & 1.87% S 194 200
4m @ 1.9g/t Au & 1.62% S 208 212
12m @ 2.43g/t Au & 2.16% S 228 240
48m @ 2.22g/t Au & 1.15% S 250 298
DDHL1506 6m @ 1.8g/t Au & 13% S 20 26
4m @ 2.38g/t Au & 7.27% S 96 100
18m @ 2.06g/t Au & 3.39% S 150 168
4m @ 2.38g/t Au & 3.89% S 176 180
8m @ 2.25g/t Au & 2.85% S 192 200
10m @ 1.71g/t Au & 1.95% S 218 228
8m @ 2.2g/t Au & 1.93% S 242 250
8m @ 1.51g/t Au & 0.62% S 264 272
4m @ 2.95g/t Au & 0.72% S 288 292
DDHL1507 6m @ 1.86g/t Au & 5.74% S 120 126
50m @ 2.72g/t Au & 3.88% S 138 188
101m @ 2.99g/t Au & 1.37% S 200 301
DDHL1508 138m @ 2.60g/t Au & 3.55% S 94 232
52m @ 2.64g/t Au & 1.98% S 248 300
DDHL1509 4m @ 1.89g/t Au & 1.96% S 12 16
210m @ 3.4g/t Au & 4.73% S 48 258
DDHL1510 10m @ 1.68g/t Au & 2.83% S 80 90
186m @ 2.84g/t Au & 4.05% S 114 300
DDHL1511 12m @ 3.22g/t Au & 7.71% S 6 18
6m @ 1.82g/t Au & 8.88% S 26 32
12m @ 2.25g/t Au & 3.71% S 218 230
6m @ 2.36g/t Au & 0.98% S 242 248
DDHL1512 6m @ 1.7g/t Au & 5.29% S 46 52
10m @ 2.1g/t Au & 6.44% S 60 70
8m @ 1.71g/t Au & 5.91% S 88 96
4m @ 2.29g/t Au & 6.82% S 98 102
86m @ 3.96g/t Au & 5.78% S 110 196
66m @ 4.18g/t Au & 4.89% S 208 274
6m @ 1.55g/t Au & 3.83% S 288 294
DDHL1514 6m @ 1.79g/t Au & 6.28% S 42 48
20m @ 2.13g/t Au & 6.93% S 60 80
6m @ 3.73g/t Au & 5.23% S 142 148
20m @ 2.87g/t Au & 7.15% S 156 176
6m @ 2.47g/t Au & 7.72% S 188 194
10m @ 3.71g/t Au & 11.27% S 208 218
18m @ 1.36g/t Au & 5.69% S 230 248
6m @ 1.91g/t Au & 4.96% S 312 318
18m @ 1.45g/t Au & 5.8% S 332 350
9.7m @ 3.52g/t Au & 3.3% S 360 369.7
DDHL1515 24m @ 2.58g/t Au & 4.07% S 116 140
28m @ 1.89g/t Au & 4.53% S 152 180
26m @ 2.13g/t Au & 3.14% S 188 214
14m @ 3.36g/t Au & 4.45% S 222 236
20m @ 1.64g/t Au & 3.49% S 250 270
12m @ 1.73g/t Au & 5.31% S 288 300
---------------------------------------------------------------

Contact Information

  • Lihir Gold Ltd (Brisbane)
    Joe Dowling
    GM Corporate Affairs
    Mobile: 0421 587 755
    or
    Lihir Gold Ltd (Toronto)
    Greg W Taylor
    Investor Relations & Corporate Communications
    (905) 337-7673
    Email: gtaylor@g-tinvestorrelations.com