Luiri Gold completes Feasibility Study drilling at Dunrobin

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THE DRILL SERGEANT: Luiri Gold has completed Feasibility Study drilling to convert a portion of the Dunrobin mineral resource at the company’s Luri Hill gold project in Zambia to a JORC ‘measured’ category.

Most of the infill drilling was from inside the existing Dunrobin open pit and all in‐fill drilling gold assays have now been received.

 

Dunrobin infill drilling July 2012 (Yellow Markers) and previous holes (Blue Markers). Source: Company announcement

 

Luiri gold said the Dunrobin resource in‐fill drilling had provided a number of high‐grade intersections, of considerable width, and at shallow depth.

Highlights of the drilling included:

From Surface: 33 metres at 7.92 g rams per tonne gold;

From 2m: 17m at 3.77 g/t gold;

From 7m: 26m at 3.31 g/t gold;

From 18m: 16m at 4.64 g/t gold;

From 24m: 6m at 8.08 g/t gold;

From 56m: 41m at 3.65 g/t gold.

The company said preliminary studies it had carried out so far demonstrate the Dunrobin gold project to be a robust project with strong economics, however this is still to be confirmed by the Feasibility Study.

The Dunrobin Feasibility Study on track for completion by mid‐ November.

“We are pleased with the data from the Dunrobin infill drilling,” Luiri Gold chief executive officer Dr Evan Kirby said in the company’s announcement to the Australian Securities Exchange.

“The results confirm the existence of shallow, high‐grade mineralisation below the floor of the existing open pit and this bodes well for the success of a future mining operation.

“Good progress is also being made with the Dunrobin gold project Feasibility Study, which envisages a fast track development in 2013 including the establishment of an open pit mining operation and 10,000 tons per month processing plant.

“Financial modelling to date indicates that the project is financially viable and will deliver attractive returns. ”

Kirby indicated the Dunrobin deposit represents less than a third of Luiri’s current gold resource, claiming the area is still highly prospective for more gold mineralisation.

“Furthermore, all of Luiri’s current gold resources and existing exploration targets are covered by mining licence rather than exploration permits.

This places Luiri in an excellent position for fast track project development, with good potential for future blue sky production expansions.”