UPDATE 1-Luiri Gold says Zambia court stays license cancellation

Tue Sep 14, 2010 8:12am EDT

* Stay of decision regarding mining license LML48

* Govt extends prospecting license LPL209 for one year

Sept 14 (Reuters) - Luiri Gold Ltd LGL.V said a Zambian high court stayed the government's decision to cancel Luiri's mining license, pending the hearing of the company's appeal.

In August, the company appealed against the cancellation of its license, LML48, at the Luiri Hill gold project in Zambia.

On June 14, the company said it had received a letter from the director of mines stating Luiri had defaulted on provisions of the mining license.

The company's mining license contains the Matala and Dunrobin gold deposits in the Luiri Hill gold project in Zambia.

The company said the government granted a one-year extension for LPL209, a prospecting license that surrounds LML48.

Luiri had applied for an extension on the license -- which expired in July -- to carry out further feasibility studies.

Luiri's shares closed at 7.5 Canadian cents on Sept. 8 on the Toronto Venture Exchange. The stock has lost 81 percent in value since it touched a 52-week high in December, when the company reported the first assay results from its drilling program at the Luiri Hill gold project. (Reporting by Isheeta Sanghi in Bangalore; Editing by Anne Pallivathuckal) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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