Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

July 17, 2007 09:37 ET

Luiri Gold Commences Major Drilling Programme in Zambia

Drilling has commenced as part of a program that will include up to 10,000 meters at the Luiri Hills Project with the main objective to expand the resources at the Matala and Dunrobin deposits. Furthermore, work has started on a number of technical scoping studies in preparation for a Preliminary Economic Assessment to be undertaken at the completion of this phase of drilling.

TORONTO, CANADA--(Marketwire - July 17, 2007) - Luiri Gold Limited (TSX VENTURE:LGL) is pleased to announce it has finalized a drilling contract with Boart Longyear Inc. to carry out an 8,000m drilling programme at the company's two most advanced deposits on the Luiri Hills Project in Zambia. A diamond drill rig is already on site and has successfully completed the first 330m drill hole at the Matala deposit. A further 2,000m will be drilled to test a number of advanced targets on the Matala Dome structure. Luiri Gold continues to use the services of RSG Global, an internationally recognized geological and mining consultancy as their exploration managers, assisted by the Luiri Gold team in Perth and Zambia.

The two deposits, Matala and Dunrobin, were the focus of a 4,159m drilling programme which was completed in May 2007. New resource estimates for both ore bodies are being calculated and should be available by the end of July.

"The start of this new exploration programme represents an exciting new phase in the growth and evaluation of these assets following the success of the previous drilling," commented Mike Sperinck, President and CEO of Luiri Gold. "We are now looking at a major programme to expand the resource at the two main deposits. Concurrent with the drilling, we have started a suite of technical scoping studies that will allow us to undertake a Preliminary Economic Assessment of the two deposits soon after the completion of the current drilling programme. Simultaneously we are also conducting follow up work, including some preliminary drilling, on several other nearby gold occurrences which Luiri has identified in its ongoing exploration programmes and also carrying on our regional exploration for IOCG mineralization on our 2,400 square kilometer concession".

Luiri Gold is intending to complete this phase of the drilling at the Matala and Dunrobin deposits by the end of the year. After the success of the previous drilling in confirming the mineralization models and the extensions at these two deposits, the major focus of the current drilling will be on increasing the resources, both at depth at Matala and Dunrobin, and on strike at Matala With the most recent drilling returning high grade results at depths of up to 200m at the Matala deposit, and therefore showing potential for underground exploitation of this orebody, a number of deep intersections over 300m below surface are being planned.

The drilling programme will also include about 2,000m of RC drilling to test the potential of a number of other nearby targets on the Matala Dome mineralized structure which were identified in the follow up trenching and soil sampling programmes completed earlier this year.

In line with the potential for Iron Oxide-Copper-Gold ("IOCG") style mineralization on the greater exploration license, regional exploration programmes will continue including a 0.5 km2 soil sampling grid over the total remaining 2,400 km2. Recent drilling on an adjoining exploration license held by AIM Resources, an ASX listed company, in joint venture with BHP Billiton, has resulted in a major copper intersection in one of its drill holes (ASX, Press Release - 22nd May 2007) yielding 655.4m at 0.46% Cu (including 18m at 0.20g/t Au) on their Mumbwa IOCG project.

In addition, Luiri Gold is carrying out a number of technical scoping studies so that the company will be in a position to carry out a Preliminary Economic Assessment of the main orebodies soon after the completion of the 8,000m drilling programme and resource update. A number of the studies have already started including metallurgical, geotechnical, and geohydrological.

About Luiri Gold

Luiri Gold is a gold focused African resource company with a strategy of creating shareholder value through growing its existing exciting gold assets whilst simultaneously expanding into a geographically diversified gold resource company with assets potentially ranging from producing mines and near term production to exploration properties in Africa.

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. Furthermore, independent research has drawn similarities between the Dunrobin gold deposit and the Kansanshi copper-gold project of First Quantum 350km to the north of Luiri Hills project area.

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.

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.

ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED

Michael Sperinck, President and CEO

Ted Grobicki, Chairman

This press release contains forward-looking information which involves risks and uncertainties. Forward looking information represents management's current views and these may change significantly as new information comes to hand.

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