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