Luiri Gold Receives Positive Metallurgical Results
Luiri Gold Limited (TSX VENTURE: LGL) is pleased to announce the results of the scoping metallurgical study undertaken on the Matala and Dunrobin deposits. The work was supervised by Coffey Mining using the Ammtec analytical facilities in Perth, Australia. The highlights from the base case option using a semi-autogenous grinding (“SAG”) mill and a conventional carbon in leach (“CIL”) circuit were as follows:
– Average recoveries of 95%+ at Matala (13 samples tested) and 87%+ at Dunrobin (6 samples tested) for both oxide and sulphide material.
– Gold appears to be free milling and amenable to SAG milling.
– High levels of gravity concentrate gold (average for Matala 65% and Dunrobin 57%).
– No deleterious elements.
“The results of the metallurgical study are very encouraging for the project,” commented Mike Sperinck, President and CEO of Luiri Gold. “Having rapidly expanded our gold mineral resource base at the Luiri Hill Project, the metallurgical study was the next critical step on the programme of scoping studies on the Project.”
A total of 19 samples were taken, 13 from Matala and 6 from Dunrobin including both oxide and sulphide samples at various grades. Elemental analysis did not indicate any problematic elements, although the silver grade was elevated at plus 5g/t. Comminution test work indicated that the mineralized material is amenable to SAG milling, the gold is free milling and all samples leached well in cyanide with over 90% extraction after 24 hours for all but two of the samples (one sample each at Matala and Dunrobin with recoveries of 84% and 45% respectively). However, due to elevated copper grades, the cyanide consumptions were high (0.6-12 kg/t). A design consumption of 4 kg/t has been assumed for the base case.
Both the Matala and Dunrobin mineralized material have a high level of gravity gold content with average recoveries of 65% and 57% for Matala and Dunrobin respectively. Therefore a gravity circuit is recommended.
The process design was conducted assuming a throughput of 1 million tons per annum, a head grade of 2.5g/t, and a copper content of 0.2%.
Due to the elevated copper content, a second treatment option was investigated which included a milling, gravity and flotation stage followed by cyanide leaching of the concentrates and a SART (Sulphidisation/ Acidification/Re-cycle/Thickening) plant. This alternative was investigated as the approach would increase the revenue by recovering the copper and reducing the cyanide consumption. Only samples with a sulphide sulphur grade of greater than 3% were selected for this test work (5 from Matala and 2 from Dunrobin). All these samples floated well with a simple reagent regime and 15 minutes laboratory float time. Gold and copper recoveries were greater than 95% for most of the samples. However, this method has higher capital costs.
Coffey Mining has concluded that the base case which assumes a convention CIL circuit appears to be the most appropriate process route at present. However, they have also recommended that future test work also be focussed on optimizing the cyanide consumption for Option 2 including flotation techniques to try and separate (or reduce) the copper from the gold in concentrate. It was also recommended that the two samples that had lower recoveries be investigated to determine the reasons for this behaviour.
Note: The Matala and Dunrobin deposits are both the subject of previous Technical Reports filed according to the National Instrument 43-101 under the Company profile at SEDAR and are available for review at www.sedar.com.
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 producing mines and near term production to exploration properties in Africa. Luiri Gold’s wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, holds mineral tenements within southern-central Zambia covering approximately 2,400km2 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.
In addition to the substantial gold resources that have been discovered and quantified to date on the properties controlled by Luiri, these properties also host a large, prominently outcropping hematitic iron deposit. Work by previous explorers and international aid agencies on this deposit has been reviewed on behalf of Luiri by Coffey Mining, whose preliminary conclusions indicate that on part of the deposit studied to date there exists the ‘mineral potential’ of between 100 and 300 million tonnes 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 the figures suggested in the Coffey study. Luiri is currently researching a range of options of how best to maximize the potential of this deposit for the benefit of our shareholders. Note that the potential quantity and grade is conceptual in nature, and there is insufficient exploration to define a mineral resource and therefore it is uncertain if further exploration will result in the target being delineated as 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
Ted Grobicki, Chairman
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.
Contacts: Luiri Gold Limited Michael Sperinck President +61-401-694-322 Luiri’s North American Investor Relations First Canadian Capital Corp. Daniel Boase (416) 742-5600 or Toll Free: 1-866-580-8891 Email: request@firstcanadiancapital.com Website: www.luirigold.com
SOURCE: Luiri Gold Limited