LGM - Luiri Gold

[System]

Luiri Gold Limited (LGM) is a gold and copper-gold exploration company that holds prospecting and mining licenses which cover approximately 2,400km² in south-central Zambia.

http://www.luirigold.com

 

[springhill]

LGM, I've never heard of them to be honest.
They released their Condensed Interim Consolidated Financial Statements Six Month Ended
http://www.asx.com.au/asxpdf/20120622/pdf/42700pwk144nxf.pdf

197m shares on issue, approx $4.8m in the kitty. Very thinly traded.

Info taken from their last quarterly.
http://www.asx.com.au/asxpdf/20120531/pdf/426kxpv3qkvlyw.pdf

Luiri Hill Gold Project, Zambia
• A new Large Scale Mining License was issued, substantially increasing the Company’s total tenure from 32 to 277 square kilometres and giving renewable mining rights for a period of 25 years
• Geological exploration is in progress with two trenching teams currently active in the field
• A high resolution airborne magnetic and radiometric survey to commence in the July quarter once the necessary flying permit is issued
• RC drilling to establish the first measured resources at Dunrobin will commence upon receipt of the required environmental permit
• Drill collars locations recommended by Coffey Mining have been surveyed and prepared
• Scoping studies, including pit modelling at Dunrobin and underground mine planning at Matala, are progressing well
• Results of the scoping study, including a fast track project at Dunrobin, are expected in the coming quarter.

About Luiri Gold Ltd
Luiri Gold Limited is a gold exploration and development company that holds 2 mining licences in
Zambia that cover the historic Dunrobin and Matala gold deposits. Coffey Mining Pty Ltd of Perth
have estimated the current gold resource at the Matala and Dunrobin deposits to be a combined
(indicated plus inferred) resource of 10.591 million tonnes at 2.2 g/t Au, for 758,000 ounces of gold,
at a cut‐off of 1.0 g/t

Anyone have further information they would care to add?

 

[springhill]

I am going to put LGM on a temporary watchlist. I am not convinced on them but they have a big exploration program in progress and are with $5.5m available, have the coin to do it.
I have no interest if they get to production, any interest is purely based on SP increase through the speculative nature of funded drill results.
The antimony aspect of the Zopkhito project adds a curious nature to LGM.


UPCOMING PROGRAM
• Confirmation of the Exploration Target for the 2012 drill program to grow overall resource inventory to over one million ounces of gold;
• Phase One feasibility drilling consists of 3,000 metres of RC drilling to upgrade a portion of the existing Dunrobin resource to Measured Resource status;
• Phase Two resource drilling, of circa 5,000 metres, will focus on growing the overall resource inventory from near‐surface extensions to known resources and the establishment of new resources ;
• Phase Three discovery drilling aims to delineate new targets from anomalies highlighted by the aerial survey, geochemical soil sampling and trenching results;
• Fugro Airborne Surveys has commenced a low altitude airborne high resolution magnetic and radiometric survey across the entire exploration area;
• Phase One drilling underway and making excellent progress;
• Mains electrical power provided to the community clinic.

LUIRI HILL GOLD PROJECT
Exploration Target
Further to the announcement of 2nd February, Luiri Gold has confirmed an exploration target (for the 2012 drill program) of growing its overall resource inventory from the current JORC compliant estimate of 758,000 ounces to over one million ounces of gold. This exploration target should not be viewed as an estimate of Mineral Resources or Ore Reserves. However, it is based on experience with the exploration work for the current JORC compliant estimate of 758,000 ounces and knowledge being gained from the current exploration program.
Luiri Gold acknowledges that there has been insufficient exploration to define additional Mineral Resources, and that it is uncertain if further exploration will result in the determination of any additional Mineral Resource. The achievement of this new exploration target requires the identification of additional inventory of at least 242,000 ounces, e.g. between 3.2 million tons at a grade of 2.5 g/t or 4.2 million tons at a grade of 1.9 g/t gold.
These potential quantities and grades are conceptual in nature but are supported by consideration of the planned drilling program in the context of results obtained to date.


OPTION TO ACQUIRE GOLD & ANTIMONY PROJECT
● Option agreement to acquire Zopkhito gold and antimony project located in Georgia, central Europe ;
● Extensive historical exploration undertaken exposing significant gold and antimony mineralisation;
● Approx 27.3 km of tunnels have been developed within mineralised veins;
● Longitudinal continuity of veins has been proved over distances approaching one kilometre by adit development on vein;
● Large number of known mineralised veins not yet sampled.
Antimony Market Dynamics
Antimony is a rare metal used mainly in flame retardants and alloys for batteries. It has been rated by the British Geological Survey in 2011 as having the highest risk of supply of all elements and currently commands a price of approximately USD12,000 per tonne.
In 2011, global antimony ore reserves reached 1.80 million tons, while the static reserve production ratio is only 12.4 years thus it is expected that the supply of antimony ore raw material will be tight for the foreseeable future. China has the world’s most abundant ore reserves, but it still has a gap in the supply of antimony ore raw materials and has become increasingly dependent on international sources of antimony.

 

[springhill]

AERIAL SURVEY RESULTS RECEIVED

• Fugro Airborne Surveys has completed its low altitude airborne high resolution magnetic and radiometric survey across the Company’s entire Zambian tenement holding;
• This is the first time that the area has been subject to a high‐resolution survey using modern technology;
• Raw results of the Aerial Survey have already given valuable indications of the structural geology of the exploration area;
• Proposals for a detailed analysis of the survey data are being obtained from specialist consultants;
• Phase Three discovery drilling aims to delineate new targets from anomalies highlighted by the aerial survey, geochemical soil sampling and trenching results.

 

[springhill]

Corporate Structure
Shares on issue - 197.4m
Options - 21m
52 week high - 13.5c
52 week low - 3c
Cash (as at 31 October) - $2.4m

LGM have completed and reported to the ASX on the following.....

MATALA SCOPING STUDY COMPLETED
HIGHLIGHTS
● Matala scoping study indicates a technically feasible and economically robust project with an ungeared IRR of 30% and NPV (at 7.5% real discount rate) of US$34.6m
● Gold production forecast to be 176,000 ounces over an 9 year mine life with initial capex of US$48m and cash costs of US$844/oz
● Life of mine average head grade of 3.00g/t Au and recoveries of 90%
● Feasibility study being planned

Luiri Gold CEO Dr Evan Kirby said,
“The scoping study has shown Matala to be a very “do-able” project based on sub-level long-hole open stoping, a mining method which is in common usage in Zambia’s copper mines.
We are looking forward to taking the Matala project to feasibility study level over the next two years”

DUNROBIN FEASIBILITY STUDY COMPLETED
HIGHLIGHTS
● Feasibility studies confirm a technically feasible and economically robust project with an ungeared IRR of 37% and NPV (at 7.5% real discount rate) of US$24.9m
● Gold production forecast to be 85,000 ounces over an 8 year mine life with initial capex of US$20m and cash costs of US$790/oz
● Total revenues of US$137m and net pre-tax post-royalty cash flow of US$48m based on gold at US$1550/oz over the mine life
● Life of mine average head grade of 2.61% and recoveries of 90%
● Dunrobin is ready for development and negotiations with debt financiers are underway
● Corporate social responsibility activities well underway and aiming to meet World Bank standards and Equator Principles

Luiri Gold CEO Dr Evan Kirby said,
“The delivery of the Dunrobin feasibility study has been a key priority for Luiri over the past quarter. The results of the study are very pleasing and quite clearly justify the work undertaken and our faith in this project.
With a relatively low capex and robust economics we are confident of securing a large component of the capital required from debt sources, thereby reducing the stress on Luiri’s balance sheet.
We have updated the financial institutions that have expressed interest in providing debt funding to the Company on the results of these studies.
Discussions with financiers are continuing, with the key outcome being the provision of initial debt development funding for Dunrobin during Q1, 2013.”

 

[System]

On November 3rd, 2017, Luiri Gold Limited (LGM) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following shareholder approval to remove the Company from the Official List.