Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

December 12, 2006 09:33 ET

Luiri Gold Limited: Drilling and Geochemistry Programme at the Luiri Hills Project, Zambia

The 5,000m drilling programme at Dunrobin and Matala is in progress and the follow up soil geochemical sampling program has started at the new Marco gold anomaly.

TORONTO, ONTARIO--(CCNMatthews - Dec. 12, 2006) - Luiri Gold Limited (TSX VENTURE:LGL) announced today that the 5,000m combined RC and Diamond core drilling programme at Dunrobin and Matala is now in progress with almost 1,000m having been completed. Drilling has been planned to expand the current resource estimates at both deposits, and to evaluate, over a distance of 4km, the New Matala Extension immediately west of and on strike with the Matala Deposit (see Figure 1). Luiri Gold have also commenced the follow up soil geochemical sampling programme over the new Marco anomaly located 4km to the north of the Matala Deposit. The 2,000m by 800m Marco anomaly is open to the north. The company is looking to fast track the exploration programme in this area so that soil sample results will be available early next year.

Drilling Programme

The current drilling programme, which includes about 5,000m of combined RC and Diamond core methods, at Dunrobin and Matala is now in progress with almost 1,000m having been completed. Initial results are expected in January 2007.

Dunrobin Deposit

At Dunrobin, the resource or mineralization is open at depth, and to the south-east. The deepest borehole previously drilled, RC062, intersected the orebody at 80m below surface and returned gold grades of 28m at 3.4g/t, which included 5m at 9.2g/t (see Figure 2). While the mineralized structure has thinned in the south-east, a hangwall intersection returned grades of greater than 100g/t over a 1m intersection. The current drilling programme will test the extension at depth, the potential of the structure improving in the south-east, and the nature of the hanging wall mineralization. Dunrobin is a shallow thick tabular plunging mineralized structure dipping at approximately 30 degrees to the south-west on the contact between the Matala Dome and the surrounding Muva Formation carbonates. The current resource estimate is within 100m of surface. Approximately 2,000m of drilling has been planned, with the majority of the meters being drilled using RC techniques. However, two diamond drill holes will also be drilled to assist with further geological interpretation of the controls of the mineralization.

Matala Deposit and Extensions

At the Matala deposit, which is a thin tabular sub-vertical high grade mineralized structure associated with a brecciated shear zone within the Matala Dome, a total of approximately 1,000m of drilling will test the immediate extensions of the mineralized zone at depth and immediately to the west (see Figure 3). Luiri Gold has estimated the Matala Inferred Resource in terms of two options, a lower grade (full intersection) option at a cut-off grade of 3.0g/t gold and a high grade option at a cut-off grade of 5.0g/t gold. The high grade option resulted in an estimate of 387,000 tonnes at 12.5g/t (156,000 ounces of gold). The orebody is open at depth below 150m, and along strike, especially to the west. All intersections will be drilled with diamond core, while the deeper holes will be pre-collared with RC first. Two twin diamond drill holes will be carried out to test both a high and low grade RC intersection from the previous drilling programmes.

Further drilling will take place immediately west, where recent geochemistry programmes and trenching have confirmed the continuation of the Matala deposit structure over a 5km strike length. A total of about 2,000m of RC drilling using heel to toe pattern is planned to coincide with the trenches. The drilling will evaluate grades and widths of the mineralized structure beneath the weathered regolith to a depth of about 50m below surface.

Follow up Geochemical Sampling Program

Over 750 in-fill soil samples are being collected on a 200m by 50m grid over the Marco anomaly to better define this anomaly. The Marco anomaly 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 results of this sampling will then be used to design targeted exploration of the anomaly, which could include trenching, mapping, drilling and geophysics.

Additional soil samples will be collected west of the Matala Extension to complete the coverage of the western third of the Matala Dome Mineralized structure. The highly encouraging soil geochemical results over this western third of the Matala Dome Mineralized structure make completion of soil sampling over the whole 25km by 12km structure a high priority for locating additional drill targets. This sampling program has begun and will be completed by March 31, 2007.

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 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 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 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 (1.6 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


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Contact Information

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