Kinbauri hits rich grades in Spain

Kinbauri Gold (KNB-V) received a healthy boost on the market after reporting more drill results from its El Valle in northwestern Spain.

Highlights from the ongoing program included:

• Hole DDH 58 — 27.9 metres grading 5.4 grams gold, 14.5 grams silver per tonne and 0.78% copper and 10.1 metres grading 11.0 grams gold, 2.5 grams silver per tonne and 0.54% copper
• Hole DDH 54 –1.5 metres grading 10.1 grams gold, 2 grams silver per tonne and 0.22% copper
• Hole DDH 60 — 26.7 metres grading 3 grams gold, 6.1 grams silver per tonne and 0.36% copper including 4.1 metres grading 8.2 grams gold, 7.5 grams silver per tonne and 0.27% copper including 2.2 metres grading 5.6 grams gold, 13.9 grams silver per tonne and1.26% copper

The results are from a 23,000 metre underground drill program and the company says best results are coming from where the epithermal structure intersects black skarn mineralization.

Vern Rampton, Kinbauri’s president and chief executive said in a statement that the results have given the company the “confidence to initiate engineering and mining studies leading to feasibility: mineralization in most infill holes being drilled was, and is, obvious to the eye.”

Kinbauri is aiming to start operations at El Valle in 2010.

An updated resource estimate released in November put measured and indicated resources at 4.1 million tonnes grading 4.5 grams gold for 727,618 oz. of gold and 84.8 million lbs of copper with inferred resources coming in at 4.8 million tonnes grading 7.1 grams gold for 1.1 million oz. of gold and 51.9 million lbs of copper.

In Toronto on March 18 the Ottawa-based company’s shares were up 12% or 10 to 91 on 594,000 shares. Over the last 52-weeks its shares have traded between $1 and 36 and with roughly 44 million shares outstanding.