Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

October 17, 2006 08:30 ET

Luiri Gold Identifies Major New Gold Anomaly at the Luiri Hills Project in Zambia

Geochemical results confirm potential for additional large targets on the Luiri Hills Project including the new Marco anomaly, which is over 2km by 800m and still open in all directions

TORONTO, ONTARIO--(CCNMatthews - Oct. 17, 2006) - Luiri Gold Limited (TSX VENTURE:LGL) announced today that the first phase of soil geochemical sampling over the western portion of the Matala Dome mineralized structure has identified several new potential targets, including a large gold anomaly of over 2km by 800m which is still open, located 4km to the north of the Matala Deposit. The new anomaly, known as the "Marco" anomaly (See Figure 1), is the largest identified to date in the area. It is substantially larger than the anomalies found either at the Dunrobin or Matala Deposits, which currently have a combined resource of 108,000 ounces of gold in the indicated and 173,000 ounces in the inferred category.

The geochemical sampling program, which covered only one third of the Matala Dome mineralized structure, will be extended to cover the remaining dome structure. The Matala Dome structure is 25km long by 12km wide and falls totally within the Luiri Gold exploration licenses. Luiri's technical team is planning follow-up exploration programs to cover the new anomalies, including infill geochemical sampling, geological mapping, trenching and field work in these areas. Luiri intends to fast track the priority targets on the Matala Dome mineralized structure to advance some of the projects to resource definition stage within the next year.

"We are encouraged by these results as they confirm our initial belief that the region has the potential to produce significantly larger targets than have been identified previously. We are using modern and systematic exploration techniques that have not been employed in this area in the past," commented Mike Sperinck, President and CEO of Luiri Gold. "The largest anomaly, Marco, is not related to any previously known occurrence on the Matala Dome structure, but is still within a 10km radius of the Dunrobin and Matala deposits. These results have confirmed our strategy as we work to expand the short term resource potential at the Matala Dome structure, while also looking at the potential for large gold-copper and copper-gold targets within the greater exploration license area."

Regional Geochemical Sampling Program

The geochemical sampling results form part of the first phase of a regional geochemical soil sampling program covering the western part of the highly-prospective Matala Dome mineralized structure with its multiple gold targets. A total of 1,260 samples, including 59 for quality control, were sent to Genalysis in Perth, Australia for analysis.

The geochemical program also identified a major potential extension to the Matala structure in the west where a second anomaly has become much stronger and wider over a distance of 1.5km. Trenching across a weaker anomaly immediately to the east has already identified the Matala structure and is to be drilled in the current program.

The geochemical program also confirmed the presence of a number of previously identified historical occurrences, and the results will be used to prioritize these targets based on their size potential.

Included in the program was the sampling of four trenches along the previously identified 4km extensions of the Matala deposit. The trenches identified weathered mineralized horizons composed mainly of moderately to strongly silicified shears with weakly to moderately developed boxworks. The samples from the trenches have shown anomalous gold grades over a broad zone of mineralization. These zones will be targeted during the current drilling program underway at both the Matala and Dunrobin projects, and should intersect the primary mineralization below the surface soil and alluvium.

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 2,400 km2 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 bitumen 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 existence of this style of copper-gold deposits in Zambia has been confirmed by independent research, which highlighted similarities between the Dunrobin gold deposit and the Kansanshi copper-gold project of First Quantum

Luiri Gold has been active in Zambia since October 2003 and has conducted two 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 (1.6mt @ 2.1g Au/t and 1.3mt @ 4.1g Au/t).

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

To view a map related to this release, please click on the link below.

http://www.ccnmatthews.com/docs/lui1017.pdf

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

Contact Information

  • Luiri Gold
    Michael Sperinck
    President
    +61-401-694-322
    or
    Luiri Gold
    Naomi Nemeth
    Vice President Investor Relations
    (416) 368-3187, ext 26
    Website: www.luirigold.com