OTTAWA, ONTARIO- Jan. 29, 2008 - Kinbauri Gold Corp. ("Kinbauri";) (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) is pleased to announce the latest results from its underground in-fill drilling program on Area 107 at El Valle and its underground exploratory program at Carles 15 kms to the north.
Highlights of the in-fill drilling program at Area 107 include:
- 17.25m grading 10.6g Au/t and 0.34% Cu in 07KV1033 including 7.4m grading 22.4g Au/t and 0.58% Cu.
Assays have been received from 4 in-fill drill holes and results are summarized as follows:
The high grade, wide intercepts encountered in DDH 07KV1033 exceed results received from adjacent holes in Area 107. The other aforenoted drill holes are located at the northwestern up-dip edge of Area 107 West and suggests that mineralization pinches out in this direction (see Schedule A).
Results have also been received for three exploratory holes at the Carles mine 15 km north of El Valle. These holes continue to extend the down-dip limits of the Carles north zone (see Schedule B). Results are summarized as follows:
DDH 07KC1005 is located approximately 25m from CN1041, which intersected 3.8g Au/t and 0.9% Cu over 3.4m, and 25m from CN1052, which intersected 6.4g Au/t and 0.8% Cu over 11m. DDH 07KC1003 and 07KC1004 lie on the western and down-dip margins of Carles North.
Kinbauri has commenced a 23,000m underground in-fill drill program to convert existing resources into reserves for Area 107 and the Black Skarn zone in order to complete a scoping study by May, 2008 and feasibility study by November, 2008. Prior to the end of 2008 Kinbauri expects to complete an additional 7,500m of underground and surface drilling in order to further expand gold resources; a further one million ounces has been targeted.
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 Drs. C. F. Gleeson and V. N. Rampton, P. Eng in their capacity as qualified persons. 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 January 30th, 2008.
About El Valle/Carles deposits and development
Kinbauri acquired the El Valle and Carles gold-copper deposits and mine infrastructures in northwestern Spain in 2007 after they were put on care and maintenance by Rio Narcea Gold Mines, Ltd ("RNGM") in December 2006 (over a period of eight years RNGM exploited approximately 1 million ounces of Au and 47 million pounds of Cu). The purchase included the mining rights to the El Valle and Carles Au-Cu deposits as well as the La Brueva (Au) and Godá;n-La Ortosa (Au, Mo) mining properties along the Rio Narcea Gold Belt. A fully operational 2000 tpd mill, office, assay and sample preparation facilities as well as a 4.7 million cu. metre tailings disposal site and mining infrastructure were included in the package.
Kinbauri is presently expanding and upgrading resources at El Valle and Carles. Exploratory drilling completed during 2007 achieved Kinbauri's objective of delineating enough resources in the two most accessible zones, Area 107 and Black Skarn North, to support in excess of a six year mine life, notably Indicated Resources - 250,000 oz Au and 27.6 million lbs. Cu (1,577,159t at 4.9g Au/t and 0.8% Cu) and Inferred Resources - 670,962oz Au and 37.4 million lbs. Cu (3,046,119t at 6.9g Au/t). See release of November 28th, 2007 for more details. Kinbauri has increased total resources at El Valle and Carles to 1,828,580 ounces of gold and 136.7 million pounds of copper, consisting of measured and indicated - 727,618 oz Au (4,171,159t at 5.4g Au/t) plus 84.8 million lbs. Cu (3,930,159t at 1.0% Cu) and inferred - 1,100,962oz Au (4,847,119t at 7.1g Au/t) plus 51.9 million lbs. Cu (4,208,119t at 0.6% Cu).
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 in order to start operations at the mine and existing mill complex there in early 2010. It currently has 43,372,320 common shares issued and outstanding; 67,056,236, fully diluted.
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.
VISIT:
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.
Schedule A is available at the following address: http://www.ccnmatthews.com/docs/KINB_Schedule_A.pdf
Schedule B is available at the following address: http://www.ccnmatthews.com/docs/KINB_Schedule_B.pdf
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.
CONTACT INFORMATION:
Kinbauri Gold Corp.
Darrell Munro, BB.A, LL.B
Manager Corporate Communications
dmunro@kinbauri-gold.com
or
Kinbauri Gold Corp.
Dr. Vern Rampton, P. Eng.
President
613-836-2594
Fax: 613-831-2730
vrampton@kinbauri-gold.com
or
Kinbauri Gold Corp.
Dr. C. F. Gleeson, P. Eng.
Vice-President Exploration
613-652-4594
c.gleeson@persona.ca
www.kinbauri-gold.com
