Liberty Gold Announces Results of Drill Testing of Leach Pads, Backfill and Underlaying Bedrock, Goldstrike Oxide Gold Project, Great Basin, USA
Leach Pad: 0.57 g/t Au over 32.0 m; 0.62 g/t Au over 15.2 m;
Back Fill: 0.58 g/t Au over 16.7 m; 0.69 g/t Au over 6.1 m;
Bedrock: 1.42 g/t Au over 13.7 m; 0.85 g/t Au over 39.6 m
VANCOUVER, Aug. 16, 2018 - Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased to announce the results from initial reverse circulation (“RC”) drill testing of the historic heap leach pads and one area of historic mine waste backfill at the Goldstrike Project, the flagship of its three principal gold projects located in the prolific Great Basin of the United States.
Results confirm that the historical leach pads, the back fill below the pad linings and bedrock to depth contain areas of gold mineralization above the cut-off grade used in the Goldstrike Preliminary Economic Assessment (“PEA”)1.
On July 10, 2018, Liberty Gold released a PEA for Goldstrike, confirming a low capital intensity, low operating cost, open-pit, run-of-mine, heap-leach operation, with a 7.5 year mine life and highly attractive economics, including a post-tax Net Present Value (5% discount rate) of US$129.5 million, Internal Rate of Return of 29.4%, and Initial Capex of US$113.2 million.
To aid in further advancement and de-risking of the Goldstrike Property, drill testing of the historic heap leach pads, stockpiles, waste dumps and pit backfill is underway. Most of the areas currently being tested lie within the PEA pit and are classified as waste in the model. Conversion of any of these areas to mineralized leach material would potentially add low-cost ounces to the resource, consisting of gold in material previously drilled, blasted and placed on surface.
Goldstrike 2018 Surficial Targets Drill Results
| Hole ID (Az, Dip) (degrees) | From (m) | To (m) | Intercept (m) | Au (g/t) | Au Cut-Off | Hole Length (m) | Target | Comments | g/t x m |
| PGS508 (0, -90) | No Significant Results | 68.6 | Goldtown Back Fill | ||||||
| PGS509 (0, -90) | No Significant Results | 19.8 | Goldtown Back Fill | No Back Fill Encountered | |||||
| PGS510 (0, -90) | 24.4 | 35.1 | 10.7 | 0.72 | 0.2 | 105.2 | Goldtown Back Fill | Bedrock Below Backfill | 7.6 |
| PGS511 (0, -90) | 3.0 | 33.5 | 30.5 | 0.40 | 0.2 | 121.9 | Goldtown Back Fill | Back Fill and Bedrock | 12.3 |
| PGS512 (180, -55) | 13.7 | 30.5 | 16.8 | 0.43 | 0.2 | 121.9 | Goldtown Back Fill | Back Fill Material | 7.2 |
| PGS513 (0, -90) | 0.0 | 7.6 | 7.6 | 0.56 | 0.2 | 111.3 | Goldtown Back Fill | Back Fill Material | 15.5 |
| and | 15.2 | 30.5 | 15.2 | 0.73 | Bedrock | ||||
| PGS526 (0, -90) | 0.0 | 32.0 | 32.0 | 0.57 | 0.2 | 62.5 | Leach Pad 1 | Leach Pad Material | 22.1 |
| and | 35.1 | 47.2 | 12.2 | 0.32 | Back Fill Material | ||||
| PGS529 (0, -90) | 0.0 | 13.7 | 13.7 | 0.64 | 0.2 | 121.9 | Leach Pad 1 | Leach Pad Material | 30.6 |
| and | 15.2 | 19.8 | 4.6 | 0.20 | |||||
| and | 41.1 | 44.2 | 3.0 | 0.41 | Back Fill Material | ||||
| and | 53.3 | 59.4 | 6.1 | 0.31 | |||||
| and | 82.3 | 106.7 | 24.4 | 0.73 | Bedrock | ||||
| PGS531 (0, -90) | 0.0 | 30.5 | 30.5 | 0.27 | 0.2 | 118.9 | Leach Pad 1 | Leach Pad Material | 42.6 |
| and | 38.1 | 48.8 | 10.7 | 0.37 | Back Fill Material | ||||
| and | 48.8 | 89.9 | 41.1 | 0.55 | Bedrock | ||||
| and | 105.2 | 112.8 | 7.6 | 1.05 | |||||
| PGS533 (320, -85) | 0.0 | 10.7 | 10.7 | 0.55 | 0.2 | 178.3 | Leach Pad1 | Leach Pad Material | 43.5 |
| and | 13.7 | 29.0 | 15.2 | 0.27 | |||||
| and | 131.1 | 170.7 | 39.6 | 0.85 | Bedrock | ||||
| PGS535 (0, -90) | 0.0 | 22.9 | 22.9 | 0.22 | 0.2 | 29.0 | Leach Pad 1 | Leach Pad Material | 5.1 |
| PGS536 (0, -90) | 0.0 | 15.2 | 15.2 | 0.62 | 0.2 | 80.8 | Leach Pad 2 | Leach Pad Material | 15.1 |
| and | 15.2 | 50.3 | 35.1 | 0.16 | 0.15 | Back Fill Material | |||
| PGS538 | 0.0 | 16.8 | 16.8 | 0.23 | 0.2 | 41.1 | Leach Pad 2 | Leach Pad Material | 13.6 |
| 16.8 | 33.5 | 16.7 | 0.58 | Back Fill Material | |||||
| PGS539 (0, -90) | 0.0 | 22.9 | 22.9 | 0.20 | 0.2 | 29.0 | Leach Pad 2 | Leach Pad Material | 4.6 |
| PGS540 (0, -90) | 0.0 | 24.4 | 24.4 | 0.17 | 0.15 | 53.3 | Leach Pad 2 | Leach Pad Material | 9.4 |
| and | 24.4 | 48.8 | 24.4 | 0.21 | 0.2 | Back Fill Material | |||
| PGS541 (0, -90) | 0.0 | 33.5 | 33.5 | 0.32 | 0.2 | 93.0 | Leach Pad 2 | Leach Pad Material | 14.1 |
| and | 47.2 | 62.5 | 15.2 | 0.22 | Back Fill Material | ||||
| PGS542 (0, -90) | 0.0 | 35.1 | 35.1 | 0.52 | 0.2 | 56.4 | Leach Pad 2 | Leach Pad Material | 24.5 |
| and | 35.1 | 53.3 | 18.2 | 0.35 | Back Fill Material | ||||
| PGS543 (0, -90) | 0.0 | 15.2 | 15.2 | 0.32 | 0.2 | 53.3 | Leach Pad 2 | Leach Pad Material | 8.2 |
| and | 15.2 | 28.6 | 13.4 | 0.25 | 0.2 | Back Fill Material | |||
| PGS544 (0, -90) | 0.0 | 29.0 | 29.0 | 0.19 | 0.15 | 68.6 | Leach Pad 2 | Leach Pad Material | 8.3 |
| and | 29.0 | 36.6 | 7.6 | 0.36 | 0.2 | Back Fill Material | |||
| PGS546 (0, -90) | 0.0 | 41.1 | 41.1 | 0.23 | 0.2 | 44.2 | Leach Pad 2 | Leach Pad Material | 9.4 |
| PGS547 (0, -90) | 0.0 | 30.5 | 30.5 | 0.39 | 0.2 | 56.4 | Leach Pad 2 | Leach Pad Material | 12.0 |
| PGS548 (0, -90) | 0.0 | 21.3 | 21.3 | 0.31 | 0.2 | 80.8 | Leach Pad 2 | Leach Pad Material | 19.5 |
| and | 21.3 | 48.8 | 27.5 | 0.28 | Back Fill Material | ||||
| and | 48.8 | 61.0 | 12.2 | 0.42 | Bedrock | ||||
| PGS550 (0, -90) | 0.0 | 24.4 | 24.4 | 0.34 | 0.2 | 61.0 | Leach Pad 2 | Leach Pad Material | 10.2 |
| and | 44.2 | 50.3 | 6.1 | 0.32 | Back Fill Material | ||||
| PGS551 (0, -90) | 0.0 | 36.6 | 36.6 | 0.49 | 0.2 | 61.0 | Leach Pad 2 | Leach Pad Material | 22.1 |
| and | 47.2 | 53.3 | 6.1 | 0.69 | Back Fill Material | ||||
| PGS553 (0, -90) | 0.0 | 42.7 | 42.7 | 0.34 | 0.2 | 91.4 | Leach Pad 2 | Leach Pad Material | 17.5 |
| and | 42.7 | 51.8 | 9.1 | 0.36 | Back Fill Material | ||||
| PGS554 (0, -90) | 0.0 | 45.7 | 45.7 | 0.25 | 0.2 | 61.0 | Leach Pad 2 | Leach Pad Material | 11.4 |
| PGS556 (180, -60) | 0.0 | 25.9 | 25.9 | 0.21 | 0.15 | 99.1 | Leach Pad 2 | Leach Pad Material | 24.9 |
| and | 76.2 | 89.9 | 13.7 | 1.42 | 0.2 | Bedrock | |||
Defined terms: grams per tonne (“g/t”), gold (“Au”), Azimuth (“Az”), metres (“m”)
KEY POINTS
- The results to date support Liberty Gold’s thesis that considerable gold remains in surficial deposits created during the historic mining operation, which operated during a period of very low gold prices and much higher ore-to-waste cut-off grades. Heap leach technology has advanced considerably in the last 20 years, with recovery of gold possible from previously-leached material.
- The heap leach pads are underlain by considerable thicknesses of mineralized backfill material.
- Drill holes encountered areas of unmined mineralization in the pit floors and walls under backfilled areas.
- Cyanide solubility tests carried out in conjunction with fire assaying of the drill samples from the heap leaches show moderate cyanide solubility. Additional testing will be carried out to determine potential recovery and the best methods to achieve it.
- Cyanide solubility of backfill material averages 86%.
- Additional drilling in these areas is warranted, as well as testing of other areas designated as historic stockpiles, waste dumps and pit backfill.
- Drone lidar surveying is being utilized to accurately estimate the volume of material stacked on the heap leach pads, currently estimated at approximately 8 million tons1.
- Results will be included in the next resource estimate.
For a map of drill collars and traces and a cross section for the current release, please click here: http://libertygold.ca/images/sites/default/files/Goldstrike_NR082018.pdf
An RC drill program is currently underway with two drills, with over 16,000 metres drilled to date. In addition to testing of the historic heap-leach, stockpile and waste dump areas, infill and step out drilling around the existing resource and testing of new targets property-wide is also underway. An amendment to the current Plan of Operations to grant access to an additional >878 acres in and adjacent to the resource area is expected in in the final quarter of 2018.
Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend. Like Kinsley Mountain and Newmont’s Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-style gold systems located off the main Carlin and Cortez trends in underexplored parts of the Great Basin. The historic Goldstrike Mine operated from 1988 to 1994, with 209,000 ounces of gold produced from 12 shallow pits, at an average grade of 1.2 g/t Au and an average recovery of approximately 75%.
Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, Liberty Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the information contained in the release is accurate. Holes were drilled using a casing-advance system with a centre-return hammer in order to insure sample integrity and minimize the likelihood of cross contamination between samples. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals vary between 30 and 100% of the reported lengths due to varying drill hole orientations, but are typically in the range of 60 to 80% of true width. Drill samples were assayed by ALS Limited in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an additional cyanide leach analysis is done where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS. ALS Geochemistry-Reno is ISO 17025:2005 Accredited, with the Elko prep lab listed on the scope of accreditation.
ABOUT LIBERTY GOLD
Liberty Gold is focused on exploring the Great Basin of the United States, home to large-scale gold projects that are ideal for open-pit mining. This region is one of the most prolific gold-producing regions in the world and stretches across Nevada and into Idaho and Utah. We know the Great Basin and are driven to discover and advance big gold deposits that can be mined profitably in open-pit scenarios. Our flagship projects are Goldstrike, Black Pine and Kinsley Mountain, all of which are past producing open-pit mines, where previous operators only scratched the surface.
For more information, visit www.libertygold.ca or contact:
Susie Bell, Manager, Investor Relations
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@libertygold.ca
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Liberty Gold within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, expected capital costs at Goldstrike, expected gold and silver recoveries from the Goldstrike mineralized material, potential additions to the resource through additional drill testing, potential upgrade of inferred mineral resources to measured and indicated mineral resources, the potential for silver resources at Goldstrike and intentions to pursue a silver resource study and beliefs regarding gold resources being contained within a larger property area. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licenses and permits and obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, the availability of drill rigs, the accuracy of a preliminary economic assessment, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Liberty Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results and/or the reliance on technical information provided by third parties as related to the Company’s mineral property interests; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 26, 2018 in the section entitled "Risk Factors", under Liberty Gold’s SEDAR profile at www.sedar.com.
The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources." While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Liberty Gold is not an SEC registered company.
Although Liberty Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Liberty Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
1 See the “Preliminary Economic Assessment and Independent Technical Report for the Goldstrike Project, Washington County, Utah USA”, effective February 8, 2018 and signed July 16, 2018 authored by Independent Qualified Persons Bob McCarthy, P.Eng. Valerie Sawyer, SME , David Rowe, CPG and Neil Winkelmann, FAusIMM of SRK Consulting (Canada) Inc.; Gary Simmons, MMSA of GL Simmons Consulting, LLC; James N. Gray, P.Geo. of Advantage Geoservices Ltd; George Lightwood, SME, Russell Browne, P.E. and Michael Bidart, P.E. of Golder Associates Inc.; and Carl Defilippi, RM SME of Kappes Cassidy & Associates, and is in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The report is available under the Company’s profile at sedar.com and is also available on the Company’s website at www.libertygold.ca.
