November 5, 2008
New Resource Estimate at Kinbauri’s El Valle/Carles Gold/Copper Project in Spain Confirms Potential for Restarting Operations
Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE: KNB)(FRANKFURT: 3KG.DE) is pleased to announce that it has received a 43-101 compliant resource up-date from Ore Reserves Engineering of Lakewood, Colorado ("ORE") on the El Valle/Carles Project (the "Project") in northwestern Spain. Resources for the project now total:
- Measured and Indicated: 916,000 ounces gold plus 113 million pounds copper (6.2Mt at 4.6g Au/t and 0.85% Cu; cut-off grades vary from 1.5 to 3.5g Au Eq/t). - Inferred: 1,097,000 ounces gold plus 74 million pounds copper (6.6Mt at 5.2g Au/t and 0.55% Cu; cut-off grades vary from 1.5 to 3.5g Au Eq/t).
Marked Increase in Resources: This up-date (see Schedule A for zone details and cut-offs) shows an increase of 52 percent in ounces of gold and 125 percent in pounds of copper over the N.I. 43-101 compliant estimate prepared by ORE on March 21st, 2007 just prior to purchase of the Project. These increases result primarily from 29,060 m of underground drilling at El Valle and 1,250 m at Carles and consists of increases in the different resource categories as follows:
- 439,000 ounces of gold and 56M pounds of copper measured and indicated.
- 251,800 ounces of gold and 48M pounds of copper inferred.
Accessible Zones for Potential 10 Year Mine Life at El Valle: Kinbauri's work-to-date has identified the following resources in four zones (Area 107 ("A107"), Black Skarn North ("BSN"), Charnela South ("CS") and Monica), all easily accessible from the present mine workings (see Schedule B):
- 787,000 ounces of gold and 98 million lbs of copper (5.1Mt at 4.8g Au/t and 0.86% Cu:cut-off grades Monica and BSN - 2.6g Au Eq/t; CS and A107 - 3.5 Au Eq/t) measured and indicated.
- 485,000 ounces of gold and 36 million lbs of copper (2.6Mt of 5.9g Au/t and 0.64% Cu: cut-off grades Monica and BSN - 2.6g Au Eq/t; CS and A107 - 3.5 Au Eq/t) inferred.
Subject to their conversion to reserves at feasibility, these resources could easily support a 10 year mine life at projected annual rates of production.
Blue Sky: Kinbauri's drill programs have focused on defining resources that will allow a timely recommencement of production at El Valle. However, it has become apparent that significant additional resources can be defined:
(1) In those zones not drilled to date (e.g. El Valle Fault, East Breccia, West Skarn, High Angle 1 and 2 as well as repetitive skarns at depth).
(2) In open zones (e.g. southwest extension of the Black Skarn North, Area 107, San Martin Zone, etc).
Dr. Rampton, Kinbauri's President & CEO commented "We are pleased that the resources identified to date, specifically those measured and indicated, have matched our expectations and that we can now continue with planning and implementing recommencement of operations at El Valle and Carles. A Scoping Study is nearing completion. What is exciting is that Kinbauri has taken a project with a reported 1.3M ounces gold in 2007 and surpassed the 2M ounce mark while maintaining considerable upside potential. We were able to complete our work to date without exhausting our working capital, which allows us some time in weighing various financial alternatives to move forward."
The current resource up-date was prepared by Mr. A. C. Noble, P.E. of ORE, a qualified person as defined by N.I. 43-101. Inverse distance power was utilized for estimating resources within geologically defined wire-frame solids. It is anticipated that ORE will have the full technical report available for filing on Sedar within the next two weeks.
This press release was prepared by Dr. V. N. Rampton, P. Eng in his capacity as a qualified person. Dr. Rampton will record a "Beyond The Press Release" on the Company's official Investor Relations Site at http://www.agoracom.com/ir/kinbauri, where these developments will be discussed in detail. The recording is expected to be available on or after November 6th, 2008.
Figures are available at the following addresses:
Figure 1: http://media3.marketwire.com/docs/knb-A.pdf
Figure 2: http://media3.marketwire.com/docs/knb-B.pdf
Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain in order to start operations at the mine and existing mill complex there in 2010. It currently has 48,752,695 common shares issued and outstanding.
THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where investors can post questions and receive answers or review questions and answers already posted by other investors. Kinbauri Web-Site: www.kinbauri-gold.com.
Contacts: North America Kinbauri Gold Corp. Darrell Munro, BB.A, LL.B Manager Corporate Communications 613-836-0198 [email protected] Kinbauri Gold Corp. Dr. Vern Rampton, P. Eng. President 613-836-2594 613-831-2730 (FAX) [email protected][email protected] Europe INVESTEL Ruediger (Rudy) Hnyk, CEO Investor Relations & Telecommunications [email protected]
SOURCE: Kinbauri Gold Corp.