Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (66608)	8/30/2010 9:42:07 PM
From: LoneClone	Read Replies (1) \| Respond to of 194042

Luiri Gold Market Update Mon Aug 30, 8:22 AM ca.news.finance.yahoo.com TORONTO, CANADA--(Marketwire - Aug. 30, 2010) - Luiri Gold Limited (TSX VENTURE: LGL.V)(ASX: LGM.AX) provides the following market update on its actions to resolve the issues surrounding the cancellation of mining licence LML48 in Zambia. LML48 contains the Matala and Dunrobin gold deposits in the Luiri Hill Gold Project. On Friday 27 August 2010, Luiri Gold lodged an appeal against the cancellation of the licence with the High Court in Zambia, in accordance with the Mines and Minerals Development Act of 2008. This follows rejection of the Company's direct request to the Zambian Minister for Mines to uphold its ownership the tenements in question. In addition to the formal legal process, the Company continues to pursue all avenues for resolution of the issue. This includes further negotiations with senior members of the Zambian Government, and the provision of additional documentary information on the matter to the Minister of Mines in Zambia. Luiri Gold's legal advice clearly states it remains in full compliance with all provisions of its mining licence. The Board of Luiri Gold remains committed to pursuing all options to secure its tenure in Zambia. The Company also wishes to advise on the status of LPL209, the prospecting licence that surrounds LML48. The Company has submitted an application for a 12 month extension on the licence to enable it to carry out further feasibility studies. The prospecting licence was due for expiry at the end of July 2010. This extension application is in accordance with the Mining Act and is under consideration by the Mines Advisory Committee. Background At the end of May 2010, Luiri Gold was advised by the Director of Mines in Zambia that it was in default of its mining licence LML48. The default notice was lodged by the Director of Mines on the basis that Luiri Gold had failed to start mining operations as it was allegedly required to do under the terms of the mining licence. Luiri Gold disagrees with both the decision and the interpretation of the requirements of its mining licence. Luiri's position is supported by the Company's correspondence records with the Zambian Government, an independent legal audit of the licences completed in May and the recent advice of legal counsel in Zambia that the programme attached to the licence did not require Luiri Gold to begin mining by a fixed date. Instead, the programme attached to the licence requires mining to commence once a sufficient resource size has been delineated to underpin a positive feasibility study for the establishment of a mine. Since the granting of the mining licence, Luiri Gold has been working to delineate that resource and undertake feasibility work so that they can begin mining as quickly as possible. Solving this tenure issue has become the principal focus of the board and senior management since it was first advised of the issue. The Company has utilised both its internal relationships and knowledge in Zambia as well as providing direct representations from Company directors. As part of those representations, Luiri Gold has proposed possible resolutions that meet both parties' objectives. Both the Company's Chairman, Mick McMullen and Chief Executive Officer (CEO), Michael Sperinck have met with Zambia's Minister of Mines, the Director of Mines and the Permanent Secretary in an effort to resolve the issue at the highest levels. The Company provided the Zambian Department of Mines with documentation supporting its continued tenure. However this response was rejected. A subsequent appeal to the Minister of Mines was also rejected at the end of July. Next Steps Under the terms of the Mines and Minerals Development Act of 2008, Luiri Gold was required to lodge any appeal against the decision to revoke its mining licence to the High Court in Zambia by Friday 27 August 2010. In addition to the legal appeal, the Company is currently preparing additional information for the Department of Mines in support of its position and will also continue to seek further, direct talks with the Minister of Mines. On Friday September 3 2010, Luiri Gold CEO Mike Sperinck will be making a presentation at the Africa Downunder Conference in Perth. This presentation will be made available through both the ASX and our website. The Company will continue to provide updates to shareholders on any developments as it pursues all avenues to retain its tenure of LML48 and the Matala and Dunrobin gold deposits. ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED Michael Sperinck, President, Managing Director and CEO 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. NEITHER THE TSX VENTURE EXCHANGE NOR THE ASX HAS REVIEWED THIS RELEASE AND NEITHER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Contacts Michael Sperinck Luiri Gold Limited President +61-401-694-322 www.luirigold.com please contact: First Canadian Capital Corp. For Luiri Gold's North American Investor Relations, Daniel Boase 416-742-5600 or Toll Free: 1-866-580-8891 request@firstcanadiancapital.com