Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

September 09, 2008 08:30 ET

Luiri Gold Drilling Results in Zambia-Excellent Gold Grades From Drilling at the Matala Deposit on the Luiri Hill Project

TORONTO, CANADA--(Marketwire - Sept. 9, 2008) - Luiri Gold Limited (TSX VENTURE:LGL) is pleased to announce the results of 15 diamond drill holes at the Matala deposit. These drill holes were planned to accomplish three main objectives: to increase the geological knowledge of the mineralization where previously only historical or RC drilling drill holes were available; to improve the understanding on the grade continuity of the mineralization; and to further test the western extension of the deposit.

Five drill holes have returned excellent gold mineralized intersections including:

- 3.8m intersection of 10.2g/t from 34m downhole depth in MTL82 (including 1m at 35.5g/t)

- 9.1m intersection of 3.0g/t from 212.4m downhole depth in MTL89 (including 3.0m at 6.0g/t)

- 33.5m intersection of 2.8g/t from 184m downhole depth in MTL92 (including 2m at 15.3g/t)

- 25.1m intersection of 2.3g/t from 146.9m downhole depth in MTL93 (including 1.8m at 11.5g/t)

- 10.1m intersection of 2.3g/t from 219m downhole depth in MTL97 (including 1.6m at 9.3g/t).

The position of these drill holes in relation to the previous drilling and resource models are shown in Figure 1 and the results of all 15 diamond drill holes is given in Table 1 at the end. Note that the lengths given above and in Table 1 are downhole. However, as the drill holes are inclined at between 40 degrees to 50 degrees and the average dip of the deposit is about 65 degrees, the reported intervals should be within 10% of true width.

The drill holes have confirmed the robust nature of the deposit and will increase the company's confidence and understanding of the continuity and orientation of the higher grade mineralization lodes for scoping studies and for planning a programme to drill the depth extension below drill hole MTL73 which intersected 5.5m at 5.9g/t from 488m downhole depth (including 2m at 13.6g/t).

The drilling in the west has indicated that there is a possible change in strike to the north which may have resulted in the lack of intersections with the main mineralized zones in drill holes MTL60 (previous drilling programme) and MTL87, and possibly MTL122. This will be tested in future programmes and could extend the potential for further resources in the west.

The drilling and sampling of these drill holes was carried out under the management of Coffey Mining. Sample preparation was carried out in the Genalysis laboratory in Johannesburg and sample pulps were sent to Genalysis Perth for gold analysis by Fire Assay technique, and silver, lead, zinc, copper and arsenic by Aqua Regia technique, followed by an atomic absorption spectrometer reading.

Luiri Gold is still to receive the results of the latest 9,600m RC drilling programme at the six new targets due to delays at the laboratories, and some potential mixing of samples identified by our quality control and assurance. These procedures are currently being resolved with the laboratories by Coffey Mining, Luiri's independent exploration managers.

Note: The Matala and Dunrobin deposits are both the subject of previous Technical Reports filed according to the National Instrument 43-101 under the Company profile at SEDAR and are available for review at www.sedar.com.

About Luiri Gold

Luiri Gold is a gold focused company with a strategy of creating shareholder value through 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 Dunrobin and Matala gold deposits. 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 current Mineral Resource at the Luiri Hill Project includes 656,000 ounces gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category.

In addition to the substantial gold resources that have been discovered and quantified to date on the properties controlled by Luiri, these properties also host a large, prominently outcropping hematitic iron ore deposit. Work by previous explorers and international aid agencies on this deposit has been reviewed on behalf of Luiri by Coffey Mining, whose preliminary conclusions indicate that on part of the ore body studied to date there exists the 'mineral potential' of between 100 and 300 million tonnes of iron ore at grades of 55-60% Fe. Interpretation of the regional geology indicates that the iron contained in this deposit could be several times larger than the figures suggested in the Coffey study. Luiri is currently researching a range of options of how best to maximize the potential of this deposit for the benefit of our stakeholders. Note that the potential quantity and grade is conceptual in nature, and there is insufficient exploration to define a mineral resource and therefore it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Luiri Gold exploration programs and resource calculations are carried out under the supervision of Mr. Michael Sperinck, Member of 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.

To view Figure 1: Longitudinal section of Matala deposit showing drill hole intersection points, please visit the following link: http://media3.marketwire.com/docs/LGLdrilling.pdf.



Table 1:Drill hole intercepts for the Matala deposit

Hole ID From To Interval Gold Comment
(m) (m) (m) g/t

MTL081 35.2 37.3 2.1 1.0 Main zone mined out

MTL082 34.0 37.8 3.8 10.2
including 1.0 35.5
and 27.7 29.0 1.32 3.2

MTL083 16.0 30.5 14.5 1.3
including 3.5 2.6

MTL086 No significant intersection Surface depleted zone

MTL087 No significant intersection Drill hole stopped short

MTL088 226.0 227.6 1.6 9.0

MTL089 212.4 221.5 9.1 3.0
including 3.0 6.0

MTL090 124.0 128.0 4.0 4.1
including 1.1 7.8

MTL092 184.0 217.5 33.5 2.8
including 1.0 9.5
3.1 7.6
2.0 15.3

MTL093 146.9 172.0 25.1 2.3
including 1.8 11.5

MTL094 320.5 325.0 4.5 5.0

MTL096 133.6 137.4 3.8 3.1
including 1.0 8.9
and 155.0 159.1 4.1 2.0

MTL097 219.0 229.1 10.1 2.3
including 1.6 9.3

MTL122 No significant intersection

MTL125 358.3 361 2.7 1.8


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Contact Information

  • Luiri Gold Limited
    Michael Sperinck
    President
    +61-401-694-322
    Website: www.luirigold.com
    or
    First Canadian Capital Corp.
    Daniel Boase
    Luiri's North American Investor Relations
    (416) 742-5600 or Toll Free: 1-866-580-8891
    Email: request@firstcanadiancapital.com