PRESS
RELEASE
Kinbauri
Gold
Corp.
110
Westhunt Drive
P.O.
Box
158
Carp,
Ontario K0A 1L0 CANADA
Stock
Symbol:
TSXV.KNB:
3KG.DE
Website:
www.kinbauri-gold.com
FOR IMMEDIATE RELEASE 2008-03
N.
I. 43-101 Technical Report on
Kinbauri?s El Valle, Spain
Significantly Increases
Resources at Area 107 and Black Skarn North
OTTAWA, ONTARIO, February 5th, 2008: Kinbauri Gold
Corp. (?Kinbauri?) (Toronto: TSXV.KNB; Frankfurt: 3KG.DE) is
pleased to report that it has filed a N.I. 43-101 compliant ?Technical Report
for the El Valle, Carl?s, La Brueva and God?n Gold Deposits, Rio Narcea Gold
Belt, Asturias, Spain?. This
report, dated January 17th, 2008 (the ?technical report?) was
authored by Alan C. Noble, P.E. of Ore Reserves Engineering, Lakewood, Colorado. It documents increased resources for two
zones, Area 107 and Black Skarn North, that are accessible from the present
workings and that will form the initial source of feed for the El Valle
mill. These resources were first
reported in Kinbauri?s press release of November 28th, 2007 and were
delineated, in part, from a 6,273m drill program completed during 2007 by
Kinbauri.
Increased Resources: Area
107 and Black Skarn North
The technical report states that ?Resources for Area 107 have been
increased from inferred resources of 913,000 tonnes with an average grade of
11.7 g Au/t to 518,000 tonnes of indicated resource with average grades of 9.2 g
Au/t and 0.89% Cu, plus 1,214,000 tonnes of inferred resource with grades of
10.5 g Au/t and 0.63% Cu. Black
Skarn North resources have been increased from inferred resources of 445,000
tonnes with grades of 5.3 g Au/t and 0.8% Cu to 1,194,000 tonnes of indicated
resource with grades of 3.74 g Au/t and 0.75% Cu plus 1,698000 tonnes of inferred resources with grades of 3.92 g Au/t and 0.50% Cu. Total resources for the Area 107 and
Black Skarn North are currently (as of December 2007) estimated at 1,713,000
tonnes of indicated resources with average grades of 5.4 g/t Au and 0.79% Cu,
plus 2,912,000 tonnes of inferred resources with grades of 6.68 g/t Au and 0.55%
Cu.? This equates to an estimated
297,000 ounces of gold and 29,700,000 pounds copper indicated plus 625,000
ounces of gold and 35,500,000 pounds copper inferred for Area 107 and BSN. The increase in indicated resources
vis-?-vis inferred resources between the technical report and the November
28th, 2007 press release is a result of a final comprehensive review
of data and modelling completed during final preparation of the report.
Resources for Rio Narcea Gold Belt.
Delineated resources for the Rio Narcea Gold Belt as at November,
2007 were:
- Total Measured + Indicated:
725,200 oz Au and 87,100,000 lbs. Cu (4,159,000 tonnes resource at 5.4
g Au/t and approximately 0.97% Cu(1)).
- Total Inferred:
1,042,000 oz Au and 50,000,000 lbs. Cu (5,357,000t at 6.1g Au/t and
approximately 0.56% Cu(2)).
(1) 0.97% Cu for 4,054,000 tonnes resource,
copper resource and grade is not estimated for 105,000 tonnes
resource.
(2) 0.56% Cu for 4,074,000 tonnes resource,
copper resource and grade is not estimated for 1,283,000 tonnes
resource.
Total resources are slightly lower than originally reported in
November, 2007 as resources from the El Valle Fault zone, which are now
amalgamated into Area 107, were inadvertently included in the total resource
calculation in November. However, a
portion of the El Valle Fault zone remains that could be included in a resource
estimate, subject to additional modeling.
Recommended 2008 Program:
30,500m Drilling and 470m Drifting - Cost 9.8 Million Dollars.
The technical report recommended the following:
1. Underground drilling
to further delineate resources in Area 107 and the Black Skarn North and to
upgrade inferred resources to measured and indicated resources; 23,000 meters
drilling.
2. Exploration to extend
Area 107 and Black Skarn North; 5,150 meters drilling.
3. Development work on
access drifts to Area 107 and the Black Skarn North, including a test drift into
Area 107; 320 meters drifting.
4. Rehabilitation of the
El Valle decline to safely facilitate drifting and drilling.
5. Exploration of
targets outside Area 107 and Black Skarn North by drilling: targets include the gold/molybdenum zone
at La Ortosa-Godan and gold zones at Area 208, East Breccia, and El Valle Fault;
2,400 meters drilling.
6. Underground exploration at Carl?s to
extend the zones down dip.
7. Creation of new
resource models for those areas at El Valle that are currently being estimated
by the extensions of open pit resource models, such as the East Breccia, El
Valle Fault, West El Valle Skarn, High Angle 1, and High Angle 2 zones.
8. Feasibility studies
to determine the best mining method for each zone and to establish a portion of
the resources as reserves; as part of the feasibility studies, Kinbauri should
review the Monica Zone resource with regards to potential reserves in that area;
data should continually be gathered to support these studies and conceptual mine
design should be ongoing process.
Kinbauri is presently pursuing items 1 (in-fill drilling to upgrade
resources; 4 drills are presently working underground; an additional 2 drills
stated to begin work in the next 2 months to complete this by July, 2008), 3
(drifting and test mining); 4 (decline rehabilitation); 7 (resource modeling);
and 8 (feasibility study). Kinbauri
is targeting the addition of one million ounces of gold in inferred resources
with completion of item 2 (underground exploration of Area 107 and Black Skarn
North); 3 (access drifts for exploration drilling) and 5 (surface exploration
drilling) during the last half of 2008.
The
drill programs are being supervised by Mr. Santiago
Gonzalez-Nistral, Kinbauri Espana?s senior geologist, with
quality control being provided by Dr. C. F. Gleeson, P. Eng., Kinbauri?s
Vice-President of Exploration: both are qualified persons as defined by N.I.
43-101. Details of Kinbauri?s
Quality Assurance Program are reported in press release of July 19th,
2007. This press release was prepared by
Dr. V. N. Rampton, P. Eng in his capacity as a qualified person. Dr. Rampton recorded a ?Beyond The Press
Release? on February 1st, 2008 on the Company?s Investor Relations
Site at http://www.agoracom.com/ir/kinbauri, where
these developments were discussed.
Kinbauri is a TSXV ? Tier 1 Mineral Exploration Company focused on
the development of mineral properties, primarily precious metal prospects in
northwestern Spain, Nevada and Canada. Its immediate focus is to expand and
upgrade resources to reserves at the El Valle property in Asturias, Spain
in order to start operations at the mine and existing mill complex there in
early 2010. It currently has 43,372,320 common
shares issued and outstanding; 67,056,236, fully diluted.
THIS PRESS RELEASE WAS
PREPARED BY KINBAURI GOLD CORP. THE
TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY
OF THIS RELEASE.
This press release contains
certain forward-looking statements, which are based on the opinions and
estimates of management at the date the statements are made, and are subject to
a variety of risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected. Kinbauri undertakes no obligation to
update forward-looking statements if circumstances or management?s estimates or
opinions should change. The reader
is cautioned not to place undue reliance on forward-looking
statements.
FOR FURTHER INFORMATION
CONTACT:
Darrell
Munro, BB.A, LL.B, Manager
Corporate Communications
E-mail:
dmunro@kinbauri-gold.com
Dr. Vern
Rampton, P. Eng., President
vrampton@kinbauri-gold.com
E-mail: kinbauri@kinbauri-gold.com
Tel: (613)
836-2594 Fax: (613) 831-2730
Dr. C. F. Gleeson, P. Eng., Vice-President Exploration
E-mail c.gleeson@persona.ca
Tel: (613) 652-4594
OR
VISIT:
Kinbauri Gold?s Hub at http://www.agoracom.com/IR/kinbauri
where investors can post questions and receive answers or review questions
and answers already posted by other investors.
Kinbauri
Web-Site: WWW.KINBAURI-GOLD.COM