Luiri Gold Limited
TSX VENTURE : LGL
ASX : LGM

Luiri Gold Limited

July 07, 2010 09:00 ET

Luiri Gold Releases Gold Resource Update in Zambia

- Indicated Mineral Resource Increased by 193% to 422,000 Ounces

TORONTO, CANADA--(Marketwire - July 7, 2010) - Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM) is pleased to announce that it has finalized its resource update at the Matala deposit resulting from the recent infill drilling programme completed at the Matala deposit on the Luiri Hill Project in Zambia. 

Based on this new resource estimate, the total ounces in the indicated mineral resource category for the Luiri Hill Project have increased significantly as can be seen from the table below.

Category Previous Estimates Current Estimates % Change
Indicated - ounces 144,000 422,000 + 193%
Indicated – Gold (g/t) 2.1 2.4 + 14%
Inferred - ounces 656,000 386,000 - 41%
Inferred – Gold (g/t) 2.7 2.4 - 11%

The conversion of a significant proportion of the previously inferred category resource inventory to the indicated category has been achieved without the loss of any gold resources.

These mineral resource ounces are contained in 5.4 million tonnes at 2.4 Au g/t for the indicated category and 5.1 million tonnes at 2.4 Au g/t for the inferred category. 

Matala and Dunrobin Mineral Resource Estimate as at June 2010
Deposit Cut-off Indicated Inferred
  Au
(g/t)
Tonnes
(000)
Au
(g/t)
Ounces
(000)
Tonnes
(000)
Au
(g/t)
Ounces
(000)
Dunrobin1 0.5 2,235 2.1 144 1,510 1.2 59
Matala (shallow)2 1 3,204 2.7 278 3,208 2.1 217
Matala (deep)3 5       359 9.5 110
Total   5,439 2.4 422 5,077 2.4 386

Note:

  1. Based on previous Coffey Mining estimate.
  2. Based on new Coffey Mining Estimate (reported to 250m below surface - 850mRL), depleted for underground workings.
  3. Based on previous Luiri Gold estimate (reported below 250m below surface).

The new mineral resource estimate for the shallow Matala deposit was undertaken by Coffey Mining using a Multiple Indicator Kriging ("MIK") approach. The constraints of the model included a significantly higher proportion of low grade material than the previous estimate which has resulted in a significant increase in the tonnage, and reduction in gold grade. The model is nominally depleted for known underground workings. The new model is viewed as a fully diluted model and will not require mining dilution in the conversion to reserves, compared to the previous model where 10% dilution at zero grade was added when mining studies carried out. The attached Figure 1 shows the areas defined as indicated and inferred mineral resource categories. 

Resources Update

An updated resource estimate has been prepared for the Matala deposits by Coffey Mining which has been reported for the plus 250m below surface portion of the Matala mineralization.

Matala deposit

The Matala resource model incorporates the Matala deposit within a tabular, south-dipping zone extending over 1,000 metre of strike. The average dip of the mineralization zone is estimated to be 65 degrees to the south although locally the dip ranges between 45 degrees to 85 degrees. The width of the mineralization ranges from a few meters to over 40 metres. Within the mineralization zone there is a fairly consistent main zone and a number of smaller footwall and hanging wall zones of mineralization. Coffey Mining has included all these zones into a single wireframe model except for a small hangingwall zone in the far east.

Previously, two different methods of estimation were used for the calculation of the Matala mineral resource depending on the potential of the mineralization to sustain open pit or underground mining operations respectively. The main criteria for the choice of estimation used were orebody width and the depth below surface. 

A single three dimensional estimation method was adopted by Coffey Mining for the whole of the Matala deposit, but was only reported to 250m below surface. This shallow part of the deposit makes up the majority of the Matala resource. The mineralization domain was defined or modeled by applying a 0.5 g/t gold cut-off. Multiple Indicator Kriging ("MIK") was used in the grade estimation. MIK is considered a robust estimation methodology for gold deposits such as at the Matala deposit when adequate consideration is given to restricting the influence of high-grade data and the possible mixture of grade populations. The MIK grade estimate, with change of support reflecting a Selective Mining Unit ("SMU") adjustment, has been applied to produce estimates targeting an SMU of 10mEast x 5mNorth x 5mRL.

A table of the grade and tonnages at different cut-offs is included at the end of the News Release.

Dunrobin deposit

The Dunrobin mineral resource estimate included the Dunrobin deposit which is a shallow thick tabular plunging orebody dipping at approximately 30° to the south-west on the contact between the Matala Dome (schists and quartzites) and the surrounding Lusaka Formation (carbonates). There has been no change to the Dunrobin resource estimate and the estimation method and results are documented in the Technical Reports previously filed on Sedar.

Note: Certain small inconsistencies may occur in the tables due to rounding issues. 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. The Company will lodge an updated Technical Report for Matala according to the requirements of the National Instrument 43-101 no later than 45 days after this News Release.

Qualified Person

The Luiri Gold exploration programs have been carried out under the supervision of Mr. Michael Sperinck, MAusIMM. The resource estimates for Dunrobin and Matala shallow were carried out by Mr. David Slater, MAusIMM and Mr. Brian Wolfe, MAusIMM from Coffey Mining, respectively. The resource estimate for Matala deep was carried out by Mr. Sperinck. They are all qualified persons, as defined by National Instrument 43-101, and Competent Persons, as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). Mr Sperinck is a Director and full-time employee of the Company. Messrs. Sperinck, Slater and Wolfe consent to the inclusion in this report of the matters based on their respective information in the form and context in which it appears. They have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration with each having more than 15 to 25 years of experience in the mining industry.

Luiri Gold's mineral tenements and the resource estimate are the subject matter of two Technical Reports which are available for review under the Company's profile on SEDAR.

ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED

Michael Sperinck, President, Managing Director and CEO

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.

Table: Matala Deposit Grade Tonnage Estimates – Shallow region, June 2010

Indicated Category
Cut-off Tonnes Gold (g/t) Ounces
(000) (000)
0.3 4,289 2.2 301
0.5 4,015 2.3 298
1 3,204 2.7 278
Inferred Category
Cut-off Tonnes Gold (g/t) Ounces
0 0
0.3 4,807 1.6 252
0.5 4,453 1.7 248
1 3,208 2.1 217

To view Figure 1: Matala deposit – Longitudinal Section Mineral Resource Categories for the shallow resource, please visit the following link: http://media3.marketwire.com/docs/LGL_Figure_1.pdf

THE TSX VENTURE EXCHANGE NOR THE ASX 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
    www.luirigold.com
    or
    For Luiri Gold's North American Investor Relations,
    please contact: First Canadian Capital Corp.
    Daniel Boase
    416-742-5600 or Toll Free: 1-866-580-8891
    request@firstcanadiancapital.com