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Luiri Gold Limited: Luiri Gold Commences Drilling at Luiri Hill Gold Project and Appoints New Directors

^{Published on 2009-09-17 09:25:48 - Market Wire}
 

TORONTO, CANADA--(Marketwire - Sept. 17, 2009) - Luiri Gold Limited ("Luiri Gold") (TSX VENTURE:LGL) is pleased to report progress towards its goal of developing a mine on its Luiri Hills advanced project where gold resources of 656,000 ounces of inferred plus 144,000 ounces of indicated, have been delineated to date. Since the successful completion of the placement of CDN $2.63 million with Lachlan Star announced in the Press Release on the 18 August 2009, Luiri Gold wishes to announce the following developments:

- The start of a 9,500m drilling programme aimed both at increasing and upgrading existing resources and testing the recently discovered drilling targets.

- The appointment to the Board of Mr. Mick McMullen, Chairman of Lachlan Star and Mr. Declan Franzmann, Managing Director of Lachlan Star.

Luiri Gold Limited is pleased to announce that it has commenced a 9,500m drilling programme which will include both infill drilling at Matala and Dunrobin deposits and follow up drilling at recently defined new targets. Firstly, the aim is to improve the classification categories of the current resources, and secondly, to increase the size of the current resource base. The targets are all in close proximity to the resources already defined at the Matala and Dunrobin deposits respectively. The results of this work should enable Luiri Gold to expand the scope of the prefeasibility study to design a mining operation significantly larger than that envisaged on the current resource base (see Press Release August 18, 2009).

The company is also planning to conduct more follow up exploration to define a pipeline of medium term drilling targets based on the regional soil geochemical sampling programme over the rest of the Matala Dome mineralized structure. These include a number of targets which are in similar structural positions to the Matala and Dunrobin deposits (see Press Release February 6, 2008). The company is also continuing with its assessment of the Nambala Iron project with a view to optimizing shareholder value from this asset.

Luiri Gold is very pleased to welcome onto the Board Mr. Mick McMullen and Mr. Declan Franzmann. Mr. McMullen will be taking on the Chairman role of Luiri Gold from Mr. Ted Grobicki who had earlier indicated his wish to retire at the completion of the successful Lachlan Star transaction.

Commenting on the retirement of Mr. Grobicki, Mike Sperinck, President and CEO said "The Board of Directors and I want to acknowledge and express our appreciation for Ted's many contributions during his tenure as Chairman of the Company's Board of Directors. Ted has led the Company through both some exciting exploration successes, and has also helped steer the company through the last 12 months which have been particularly difficult for junior explorers. Luiri Gold has emerged with a strong base with both a quality gold resource and funding to carry the strategy forward. We wish him well in the future."

Ted Grobicki said "it has been a great pleasure to watch the growth of the company's exciting assets in Zambia and to have been able to attract good funding for the evaluation and development of this new project. I am pleased to be leaving the company in a strong position with excellent assets to develop, the right level of funding and a very positive outlook for the gold price. I am very confident that Mike and his team, with the guidance and experience of Mick as the new Chairman, will make a great success of their future endeavors".

Mr. Mick McMullen has many years experience in exploration, financing, development and operation of mining projects. He has worked in Australia, Africa, Europe, Asia and South America. He was a founding shareholder and executive director of Tritton Resources Limited, a company that developed a copper mine in Australia prior to being acquired by Straits Resources. He was most recently the Managing Director of Northern Iron Limited, which under his direction and management recently successfully invested US $190 million to redevelop a 3Mtpa iron ore mine and attendant infrastructure in Norway. Mr. Mc Mullen is currently in a transition role to Non Executive Director of Northern Iron Limited and Chairman of Lachlan Star Limited.

Mr. Declan Franzmann is a mining engineer with more than 15 years experience in operational mine management and engineering roles in Australia. His previous experience includes general and mining management roles at a number of gold, copper and base metal mines in Australia, including the Tritton, CSA and Yilgarn Star Mines. He is currently a Director of Lachlan Star Limited and Every Day Mine Services.

Commenting on the election of Messrs McMullen and Franzmann to the Board, Mike Sperinck said, "We are very pleased to welcome both Mick and Declan to the Board. With the company's immediate focus moving to include project development, they bring many of the additional talents required for this transition. We look forward to working with them on the Board, and on Mick taking on the role as non-executive Chairman."

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 near term production to exploration properties in Africa. The current focus is at Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, which holds mineral tenements within southern-central Zambia covering approximately 1,200km2 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 current Mineral Resource at the Luiri Hill Project includes 656,000 ounces gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category (reported in Press Release April 15, 2008).

In addition to the substantial gold resources on the properties controlled by Luiri Gold, the properties also host the large, prominently outcropping hematitic Nambala iron deposit. A review by Coffey Mining indicated that on part of the mineralized body there exists the 'mineral potential' of between 100 and 300 million tonnes of iron at grades of 55-60% Fe. Interpretation of the regional geology indicates that the iron contained in this deposit could be several times larger than this figure. However, there are a number of logistical issues relating to the distance from the project to the coast. The potential quantity and grade is conceptual in nature, and there is insufficient exploration completed at the present time to define a mineral resource.

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

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.