Luiri Gold updates resources in Zambia

As Luiri Gold (LGL-T, LGM-A) awaits clarity on the future of the mining licence it holds for its Luiri Hill gold project in Zambia, the company has in the meantime successfully converted more inferred resources into the indicated category at the gold project, 120 km northwest of the Zambian capital of Lusaka.

At a 0.5 gram gold per tonne cutoff, indicated resources at the Matala and Dunrobin deposits combined, now tally 5.4 million tonnes grading 2.4 grams gold per tonne for contained gold of 422,000 oz., and 5.01 million tonnes grading 2.4 grams gold for 386,000 oz. gold in the inferred category.

The Matala deposit was mined from 1928 to 1941 with an estimated 6,751 ounces of gold recovered over that period from 12,421 tonnes with an average grade of 16.9 grams gold per tonne from underground operations. The deposit lies within a tabular, south-dipping zone extending over a strike length of 1,000 metres. The average dip of the mineralization zone is estimated to be 65 degrees to the south and the width of the mineralization ranges from a few metres to over 40 metres.

Dunrobin was initially mined from 1928 to 1941 with an estimated 31,593 oz. gold recovered from 91,173 tonnes grading an average of 10.8 grams gold per tonne from a small open pit and underground operations. (There was no change in the Dunrobin resource estimate in the updated figures the company released today.)

The Dunrobin deposit is a shallow thick tabular plunging ore body dipping at about 30 degrees to the southwest on the contact between the Matala Dome (schists and quartzites) and the surrounding Lusaka Formation carbonates.

Over the last three years exploration has increased the project’s resource base at a discovery cost of less than US$10 per oz., the company states on its website. Initial metallurgical work suggests the gold is recoverable through conventional gravity and CIL methods.

On June 14, Luiri Gold received a letter from Zambia’s Director of Mines alleging that it was in default of provisions made in the granting of mining license (LM48), which covers about 28 sq km and includes the historic Dunrobin and Matala mines.

Luiri Gold says according to its records and legal counsel, the company is in compliance with all of the provisions of its mining licence. It has 60 days to show that it is not in default.

In addition to its gold assets in the country, Luiri Gold owns 100% of the Nambala iron project, 20 km west of the Luiri Hill project. Nambala contains hematite iron with grades of up to 70%. Nambala lies within a belt including several iron-rich hills that together form the Nambala Range, which is about 25 km in length and rises to more than 260 metres above the surrounding plains.

The company has offices in Lusaka, Zambia and Perth, Australia.

In Toronto Luiri Gold closed up 4¢ or 25% at 20¢ per share. Over the last year the company has traded in a range of 7¢-40¢ and has 105.2 million shares outstanding.