PERTH, AUSTRALIA — (Marketwire) — 10/17/11 — Emerging African gold developer Luiri Gold Limited (TSX VENTURE: LGL)(ASX: LGM) („Luiri“ or „Company“) announces that the Zambian Ministry of Mines and Mineral Development has reinstated the Company-s Large Scale Mining License LML 48 („LML 48“). LML 48 contains the Matala and Dunrobin gold deposits in the Company-s Luiri Hill Deposit. The Company is able to immediately recommence full-scale exploration and development activities in Zambia.
Under the terms of the settlement reached with the Government of Zambia and other agreements with relevant stakeholders:
The agreements are the result of extensive negotiations by the management team of Luiri with the relevant Zambian Government departments and stakeholders to resolve the various issues that had caused the Cancellation Notice. During the negotiations, Luiri demonstrated good faith by continuing to employ 29 full time workers and taking on additional personnel on short-term contracts to progress exploration trenching in preparation for a new drilling program.
Management changes
To reflect the Company-s renewed exploration activities, director Melissa Sturgess will move into the role of Non-executive Chairman, while current director Evan Kirby has been appointed as Luiri-s CEO and Managing Director and will also act as Chairman of Luiri-s Zambian operating company, Luiri Gold Mines Ltd. („Luiri Zambia“). Additionally, Clinton White has been appointed Chief Executive Officer, Country Manager, and General Manager for Luiri Zambia.
Exploration and Study Program
Luiri-s management believes that the area comprising LML 48 is under-explored and highly prospective for mineralization that could form the basis of commercially viable mining operations. The proposed work program negotiated in conjunction with the full reinstatement of LML 48 is a combination of exploration and project evaluation study work. Additional exploration drilling will be conducted with the express objectives of:
At the same time as the exploration drilling, study work will be progressed to develop potential plans for mining and processing, to accurately evaluate costs and revenue estimates and to assemble a project implementation plan and development schedule. During this period, all necessary permitting for project development will be sought. This work will support a definitive technical and financial evaluation that will be used as the basis for project financing.
Exploration work is expected to be comprised of the following elements:
Community Development Trust
In conjunction with the settlement agreement with the Zambian government, Luiri has made formal commitments to the local communities in the vicinity of LML 48 (the „Development Area“) in relation to community-development programs during the exploration phase of the project. These commitments of the Company include:
Successful establishment of mining operations is anticipated to provide additional long-term benefits to all stakeholders, including those in the Development Area.
Chairman of Luiri, Melissa Sturgess, commented, „We are of course very pleased with this outcome. Thanks are due to the efforts of Luiri-s new team and also to the Government of Zambia, and its stakeholders, who have all been integral in achieving an outcome which will see Luiri-s exploration and development efforts expand for the benefit of both the shareholders of Luiri and for the people of Zambia.“
On behalf of the Board of Directors of the Company,
Mike Langoulant, Director and Corporate Secretary
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this release, including statements regarding the exploration and study program in relation to the area comprising LML 48 and the Company-s plans and intentions with respect to the Company-s exploration activities and obligations pursuant to the settlement agreement with the Zambian government, constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company-s current beliefs as well as assumptions made by and information currently available to the Company, including that LML 48 remains in good standing, that the Company is able to obtain any other required government or other regulatory approvals and adequate financing to complete the planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis, and that actual results of exploration activities are consistent with management-s expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, actual results of the Company-s exploration activities being different than those expected by management, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, and general market conditions. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
ARBN 139 588 926
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Luiri Gold +61 8 6313 5155 +61 8 9324 2977 (FAX)
Media and Investor Inquiries: Purple Communications Karen Oswald +61 8 6314 6300
Purple Communications Greg Galton +61 8 6314 6300
Only registered users can comment.
