Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

March 22, 2007 10:02 ET

Luiri Completes Drilling Programme at the Luiri Hills Project, Zambia

Luiri Gold completes 4,159m drilling programme at the Matala and Dunrobin gold deposits at their Luiri Hills Project in Zambia.

TORONTO, ONTARIO--(CCNMatthews - March 22, 2007) - Luiri Gold Limited (TSX VENTURE:LGL) has completed a 4,159m combined RC and diamond core drilling programme at the Dunrobin and Matala gold deposits. The company has also received the results of the first four drill holes completed at the Dunrobin deposit.

Three of the four drill holes have returned very positive mineralized intersections including a 26m intersection of 2.1g/t from 97m downhole depth in DUN87 (including 2m at 12.6g/t), a 18m intersection of 2.2g/t from 121m downhole depth in DUN101 (including 5m at 5.0g/t) and a 17m intersection of 3.4g/t from 121m downhole depth in DUN102 (including 4m at 9.8g/t). These holes were all down dip of the current deposit limits.

Furthermore, all the deeper drill holes at the Matala Deposit have intersected the sulphide-breccia structure at depth with assay results still pending from Genalysis, the analytical laboratory in Perth.

The drilling programme was planned to incrementally expand the current resource estimates for both deposits, and to evaluate, over a 4km length, the Matala Extension immediately west of and on strike from the Matala Deposit.

The drilling was initially delayed due to the drilling contractor's inability to attain the depths required with the RC drilling rig. As a result, the majority of the drill holes had to be completed with a much slower diamond core drilling rig. Luiri Gold expects a stead flow of assaying results from the Genalysis laboratory until the end of April. Thereafter, the company will undertake a resource update at the Dunrobin and Matala Deposits.

Drilling Programme

The drilling programme was planned to include about 5,000m of combined RC and diamond core methods at Dunrobin and Matala. This was reduced to 4,159m as a result of the time delays and the cost increase of finishing the RC holes with diamond core. The drilling comprised 2,769m of RC drilling and 1,390m of diamond core drilling. The reduction in meters drilled is not expected to have a major impact on the results of the programme. The following table shows the results for the first four drilling holes to date.



Hole ID From(i) To(i) Interval(i) Gold

(m) (m) (m) g/t

DUN087 97 122 25 2.2

including 97 99 2 12.6

DUN095 150 152.4 2.4 0.9

DUN101 121 139 18 2.2

including 121 126 5 5.0

DUN102 121 138 17 3.4

including 125 129 4 9.8


Note: (i) Depths are down hole and the drill holes are inclined at 65 degrees approximately perpendicular to the dip of the Dunrobin deposit (30 degrees). Therefore the intersections widths should be within 5% of true width.

Qualified Person

The Luiri Gold exploration programs and resource calculations are carried out under the supervision of Mr. Michael Sperinck, AUSMIM. Mr. Sperinck is a qualified person, as defined by National Instrument 43-101, with more than 25 years of experience in the mining industry.

About Luiri Gold

Luiri Gold is an African-focused resource exploration company with a stated strategy of creating shareholder value through the discovery and exploitation of gold and copper-gold ore deposits in Zambia. Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, holds mineral tenements within southern-central Zambia covering approximately 2,400km2 of highly prospective exploration ground focused on the historic Dunrobin and Matala gold mines. The Luiri Hill Project is situated approximately 120km west-northwest of the Zambian capital of Lusaka in Zambia's Central Province. Access to the Project area is by a newly-upgraded paved road from Lusaka.

The Luiri Hills Project area is adjacent to ground held by BHP Billiton in Joint Venture with other parties. This consortium has been actively exploring for iron oxide gold-copper ("IOCG") mineral occurrences. The Kansanshi copper-gold project of First Quantum 350km north of Luiri Hills has been described as an IOCG deposit. Independent research has drawn similarities between the Dunrobin gold deposit and Kansanshi.

Luiri Gold has been active in Zambia since October 2003 and has conducted three years of exploration on its Zambian tenements, including drill programs that have resulted in an estimated resource of 108,000 ounces of gold in the indicated and 173,000 ounces in the inferred category according to JORC classification (1.6 million tonnes @ 2.1g/t and 1.3 million tonnes @ 4.1g/t respectively).

Luiri Gold's mineral tenements and the resource estimate are the subject matter of a Technical Report dated February 6, 2006 prepared pursuant to National Instrument 43-101 by Snowden Mining Industry Consultants Pty. Ltd. and entitled "Independent Technical Report on the Mineral Assets of Luiri Gold Mines Ltd.", available for review under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED

Michael Sperinck, President

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Luiri Gold Limited
    Michael Sperinck
    President
    +61-401-694-322
    Website: www.luirigold.com