OTTAWA, ONTARIO--(Oct. 16, 2007) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri";) is pleased to announce that it has completed the exploratory phase of its underground drill program at El Valle, Asturias in northwestern Spain. The latest set of drill results have exceeded expectations with numerous high grade intersections, including:
- 39.1 g Au/t and 1.6% Cu over 4.45 metres
- 85 g Au/t and 8.2% Cu over 2.35 metres
The objective of this exploratory drilling program was to delineate enough resource within Area 107 and the Black Skarn zones at El Valle to support a minimal six-year mine life. Kinbauri's management is encouraged by results from the completed drill program and has commissioned an up-date of the NI 43-101 resource estimates for these two zones to determine whether the mine life threshold has indeed been exceeded.
A total of 6,273 metres were drilled during this resource expansion program. Results from the final five holes are summarized below:
Complete results from the underground exploration program are reported in Schedule B and posted on Kinbauri's web-site, www.kinbauri-gold.com/projects/el-valle/tabledrillholeassayselvalle.pdf . Area 107 and the Black Skarn Zone were targeted for this exploration drilling program because of the continuity of their gold and copper mineralization and proximity to existing mining and milling infrastructure. Kinbauri is now in the midst of completing 500 metres of drifting in order to access Area 107 and Black Skarn where 24,000 m of underground definition drilling is planned. Coincidental with the later part of this definition drilling program, engineering and mine development plans will be completed to allow development work to begin in 2009 and ultimately the recommencement of production at El Valle.
The drill programs are being supervised by Mr. Santiago Gonzalez-Nistral, Kinbauri Espana's senior geologist, with quality control being provided by Dr. C. F. Gleeson, P. Eng., Kinbauri's Vice-President of Exploration: both are qualified persons as defined by N.I. 43-101. Details of Kinbauri's Quality Assurance Program are reported in press release of July 19th, 2007.
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 October 18th, 2007.
Kinbauri is a TSX VENTURE - 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 with a view to re-starting operations at the mine and mill complex there. It currently has 43,372,320 common shares issued and outstanding; 67,056,236, fully diluted.
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.
The Schedule A is available at the following address:
http://www.ccnmatthews.com/docs/Schedule%20A.pdf
The Schedule B is available at the following address:
http://www.ccnmatthews.com/docs/Schedule%20B.pdf
For more information, please contact
Kinbauri Gold Corp.
Dr. Vern N. Rampton
President
613-836-2594
613-831-2730 (FAX)
vrampton@kinbauri-gold.com
or
Kinbauri Gold Corp.
Dr. Chris Gleeson,
Vice-President Exploration
613-652-4594
613-652-1223 (FAX)
cgleeson@kinbauri-gold.com
kinbauri@kinbauri-gold.com
