Luiri Gold Ltd. Increases Gold Resource in Zambia by 24hgold

Marketwire


Luiri Gold Limited
TSX VENTURE:	LGL

Other Recent News

April 15, 2008

Luiri Gold Increases Gold Resource in Zambia

- Inferred Resource increased to 656,000 ounces

- Indicated Resource increased to 144,000 ounces

TORONTO, CANADA--(Marketwire - April 15, 2008) - Luiri Gold Limited (TSX VENTURE:LGL) is pleased to announce that it has finalized its resource updates resulting from the 9,244m Diamond drilling programme recently completed at the Luiri Hills Project (Dunrobin and Matala deposits) in Zambia. The new mineral resource estimates show a significant increase in gold ounces with the total inferred mineral resource increasing from 378,000 ounces to 656,000 ounces (+74%) and the total indicated mineral resource increasing from 117,000 ounces to 144,000 ounces (+23%). These mineral resource ounces are contained in 7.1 million tonnes at 2.9 Au g/t for the inferred category and 2.2 million tonnes at 2.1 Au g/t for the indicated category.

"The results of the new resource estimates have again confirmed that the Luiri Hill Project has the potential to be a substantial gold project," commented Mike Sperinck, President and CEO of Luiri Gold. "Furthermore, the current resources at the project are from only the first two targets that we have drilled. We have just completed another plus 9,000m exploratory RC drilling programme on six other targets close to the Matala and Dunrobin deposits and are currently waiting on the assay results."

Once Luiri Gold has received the results of the latest RC drilling programme (expected later in April and May) and a metallurgical study on the Dunrobin and Matala deposits currently being finalized by Coffey Mining, the Company intends to assess the requirements of a new drilling programme and additional scoping level studies for input into a preliminary economic assessment.

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 . The Company will lodge an updated Technical Report according to the requirements of the National Instrument 43-101 by the end of May 2008.

Resources Update

An updated resource estimate has been prepared for both the Dunrobin and Matala deposits. Coffey Mining (previously known as RSG Global) as the exploration manager was responsible for all on site supervision, data compilation, quality assurance and quality control during the drilling programme.

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 main mineralization zone ranges from less than 1 metre to over 20 metres. In addition to the main zone the deposit contains a number of smaller footwall and hanging wall zones of mineralization. Previously, the resource had been estimated on only the main mineralization zone, however, with the additional drilling one of the immediate hanging wall mineralized zones has now also been modeled and included in the Matala resource estimate.

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.

The first approach, which was applied to the shallower (less than 250m below surface ("BS")) and wider portion of the orebody and which made up the majority of the resource, was a standard three dimensional method. In this case, a cut-off grade of 0.5 Au g/t was used to define the limits of the mineralized intersection widths within each drill hole that were then used to model the mineralization domains. Appropriate adjustments (cuts) were made to high grade (Au g/t) outliers to reduce their impact on the grade estimation. A three dimensional Ordinary Kriging ("OK") algorithm was used to estimate the gold grade (Au g/t) within a block model of 20mEast x 5mNorth x 20mRL. OK is considered a robust estimation methodology for gold deposits such as at the Matala deposit and taking into account the current drill hole spacing. Furthermore, due to the relatively wide spacing of the current data, no change of support has been made.

The second approach, using an 'accumulation' methodology was selected for the estimations of the resource in the thinner and deeper (greater than 250m BS) parts of the orebody where a significantly higher grade (3.0 Au g/t) cut-off was applied. This required that a single composite over the total selected mineralization width be calculated for each intersection. As was the case in the estimations carried out in the shallower portions of the orebody, appropriate adjustments were made to adjust (cut) high value outliers to reduce their impact on the grade estimation. Thereafter, a two dimensional model grid based on an east-west longitudinal section along the 10,000 north local grid line was created. The model was based on a 20mEast x 20mElevation grid and OK was used to estimate both the width (metres) and accumulation (metres multiplied by Au g/t). This method is considered a robust methodology for resource estimates for thinner gold deposits of this mineralization style at the current level of confidence. The estimate of gold grade (g/t) for the resource in this portion of the orebody is equal to the accumulation divided by the width. This approach is documented in the Technical Reports previously filed on Sedar.

The resulting report for the estimate, which is all classified in the inferred mineral resources category, is summarized in Table 1.


Table 1: Matala April 2008 Mineral Resource Estimate
---------------------------------------------------------------------------
                                          Inferred Mineral Resource
---------------------------------------------------------------------------
                                  Cutoff   Tonnes  Gold   Ounces  Width (1)
                                    (g/t)    (000) (g/t)    (000)    (m)
---------------------------------------------------------------------------
Main Domain
---------------------------------------------------------------------------
Wide above 250m BS                   1.0    4,084   3.0      394
---------------------------------------------------------------------------
Thin above 250m BS                   5.0      265   7.1       61    1.0
---------------------------------------------------------------------------
Thin below 250m BS                   5.0      226   9.6       70    1.2
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Hanging Wall Domain
---------------------------------------------------------------------------
Wide                                 1.0      980   2.3       72
---------------------------------------------------------------------------

---------------------------------------------------------------------------
TOTAL                                       5,555   3.3      597
---------------------------------------------------------------------------
Note: 1. Width is only reported for the two dimensional approach.

The gold content of the total resources at Matala has increased by over 70% from the previous estimate. Of this increase, approximately 80% is as a result of extensions to the main mineralization and the inclusion of the hanging wall mineralization based on the new drilling, whilst 20% is the result in the reduction of the cut-off to 1g/t for the shallower area which may be amenable to open pit mining.

Dunrobin deposit

The Dunrobin mineral resource estimate includes the Dunrobin deposit which is a shallow thick tabular plunging orebody dipping at approximately 30 degrees to the south-west on the contact between the Matala Dome (schists and quartzites) and the surrounding Lusaka Formation (carbonates).

The resource was estimated with respect to two mineralization domains - the Main domain and a smaller Hanging Wall domain. The domains were defined or modeled by applying a 0.3 g/t gold cut-off. Appropriate adjustments (cuts) were made to high grade outliers to reduce their impact on the grade estimation. Multiple Indicator Kriging ("MIK") was used in the grade estimation. MIK is considered a robust estimation methodology for gold deposits such as at the Dunrobin deposit when adequate consideration is given to restricting the influence of high-grade data. 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. This approach is also documented in the Technical Reports previously filed on Sedar.

The resulting grade tonnage report for the estimate and resulting classification is summarized in Table 2.


Table 2: Dunrobin April 2008 Mineral Resource Estimate
---------------------------------------------------------------------------
                                     Indicated              Inferred 
                     Cut-off     Mineral Resource       Mineral Resource
---------------------------------------------------------------------------
                        Gold  Tonnage  Gold  Ounces  Tonnage  Gold  Ounces
                        (g/t)    (000) (g/t)   (000)    (000) (g/t)   (000)
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Combined                 0.5    2,235   2.0     144    1,511   1.2      59
---------------------------------------------------------------------------

The indicated resource at Dunrobin has increased by 23% and the inferred resource by more than 100% over the previous estimate.

Note: Certain small inconsistencies may occur in the tables due to rounding issues.

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 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.

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

or

For Luiri's North American Investor Relations
First Canadian Capital Corp.
Daniel Boase
(416) 742-5600 or Toll Free: 1-866-580-8891
Email: request@firstcanadiancapital.com

INDUSTRY: Manufacturing and Production - Mining and Metals

Footer

Legends
	Production
	Mine development
	Discovery
	Exploration
	Past producer
On Google Earth, click on the button, to show property information, and access to project page or company page.