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Zambia gold property nears

development decision

TSX-V listed junior, Luiri Gold appears that it may be near to making a go-ahead decision on the Luiri Hills project in Zambia where it is exploring ground close to the old Dunrobin and Matala gold mines.

Author: Ronald Mwila

NDOLA, ZAMBIA – 

Just about four years after registering an exploration company in Zambia, TSX Venture exchange-listed Luiri Gold Limited (LGL-V) appears to be inching closer to developing a gold mine in the country’s Central Province.

Luiri Gold’s Zambian operation, Luiri Gold Mines (Zambia) Limited, holds two prospecting licences – PLLS 173 and PLLS 209 – and a mining licence LML 48, all covering a 2,400 square kilometre tenement around the historically worked Dunrobin and Matala gold mines. The area, dubbed the Luiri Hill Project, lies about 120 km west-northwest of Zambia’s capital Lusaka in Mumbwa district.

The company has recently announced a number of positive intersections across its tenements, which have made local mining experts including professor Stephen Simukanga, a regionally respected environmental geology expert, to suggest that developing a mine seemes likely.

This view is supported by Snowden Consultants, who recently indicated a strong possibility of defining large deposits that can justify the establishment of a mine. The report notes in part: “the Luiri Hill Project appears to have both short term and longer term gold exploration potential. In the short tem, there is strong potential to expand the resources at Dunrobin, Matala and possibly Chosa…to attempt to define large, relatively low grade deposits that justify establishing a full mining operation.”

A local mining expert who has been close to the project said Luiri Gold’s recent capital raising drives seem to favour the possibility of developing a mine in the area.

In April this year, for instance, Luiri Gold engaged Strata Capital UK LLP to raise C$4 million via a private placement to further work at the Luiri Hill project.

But when contacted, Luiri Gold chief executive officer Mike Sperinck neither confirmed nor denied the possibility of developing a mine at the project, which currently  has an indicated  resource estimate of 108,000 ounces of gold in 1.62 million tonnes of ore grading 2.1g/t and an inferred resource of 173,000 ounces of gold in 1.3 million tonnes grading 4.1g/t. And results from reverse circulation and diamond drilling undertaken in March this year have returned intersctions of up to 12.7g/t, which should be a boost for Luiri Gold.

“We should be issuing a Press Release in the next two weeks which should answer some of your queries on the way forward at Luiri Hills.  As some of it could be deemed to be material, I would ask for your patience, and I will respond at that time,” Sperinck told Mineweb.

But he confirmed that RSG Global, the exploration manager at Luiri Hills, is currently preparing a new resource estimate for Dunrobin and Matala.

http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=23174&sn=Detail

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