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Liberty Gold Corp
Symbol LGD
Shares Issued 236,660,092
Close 2019-10-11 C$ 0.88
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Liberty Gold drills 44.2 m of 3.14 g/t Au at Black Pine

2019-10-15 06:45 ET - News Release

Dr. Moira Smith reports


Liberty Gold Corp. has provided an update on field activities at its three flagship Carlin-style gold properties in the eastern Great basin: Black Pine in southern Idaho, Goldstrike in southwestern Utah and Kinsley in eastern Nevada. All properties are past-producing mines that successfully produced gold in simple, run-of-mine oxide heap leach operation in the 1990s.

Black Pine drilling

Reverse circulation (RC) drilling at Black Pine continues to return thick, high-grade intervals of Carlin-style oxide gold mineralization. New results from the Discovery 2 zone expand the footprint of mineralization to a width of 175 metres, remaining open for extension in all directions.

                             DISCOVERY 2 ZONE DRILL HIGHLIGHTS*

Hole ID                 From       To    Intercept          Au      Au cut-off     Hole length
                         (m)      (m)          (m)       (g/t)           (g/t)             (m)

LBP058                  89.9    111.3         21.3        0.46             0.2           324.6
and                    120.4    131.1         10.7        0.48
and                    224.0    239.3         15.2        0.62
and                    251.5    291.1         39.6        1.18
including              283.5    288.0          4.6        3.00               1
LBP059                   0.0     16.8         16.8        0.34             0.2           236.2
and                     25.9     35.1          9.1        0.44
and                    147.8    160.0         12.2        0.41
and                    170.7    202.7         32.0        0.38
and                    208.8    233.2         24.4        1.53
including              210.3    219.5          9.1        3.28               1
LBP060                 103.6    115.8         12.2        0.37             0.2           318.6
and                    216.4    248.4         32.0        0.54
LBP062                 109.7    118.9          9.1        1.12             0.2           221.0
and                    129.5    173.7         44.2        3.14
including              135.6    152.4         16.8        6.53               1
and including          140.2   147.83          7.6        11.3               5
LBP063                  82.3    125.0         42.7        0.39             0.2           233.2
and                    213.4    222.5          9.1        4.56
including              214.9    219.5          4.6        7.32               5

* A number of mineralized intervals were omitted from this table for brevity. Please refer to 
the full table at the company's website for complete results. 

The Discovery 2 zone continues to deliver high grades along a north-striking feeder fault corridor, as well as long intervals of gold mineralization in the footwall area to the east. Liberty Gold believes that the area tested to date represents a small portion of the total strike length of the Discovery 2 zone. The Discovery 1 and Discovery 2 zones are projected to converge near the northern margin of and below the historic B pit, approximately 400 m to the south, with an average historical mined grade of 1.38 grams per tonne gold.

Key points:

  • The Discovery 2 zone remains open in all directions and continues to deliver thick, high-grade oxide gold intercepts in drill holes.
  • All highlight intercepts to date are oxide. Weighted average cyanide solubility for the primary high-grade interval in LBP062 is 92 per cent, for LBP063, 92 per cent, and for LBP058, 88 per cent.
  • Drill hole LBP062 is located northeast of drill hole LBP051, which returned 2.52 g/t Au over 41.1 m in the target stratigraphic interval.
  • The high-grade target stratigraphic horizon in the initial one-square-kilometre focus area is still largely untested. The horizon extends throughout most areas of the 12-square-kilometre gold system, which also awaits drill testing.

With the new drilling in the Discovery 2 zone, seven of the top 10 unmined intercepts on the Black Pine property have been drilled by Liberty Gold, including the top five (there are 1,398 historic holes with greater than one gram-metre unmined gold intercepts on the property, compared with 61 holes with reportable intercepts drilled to date by Liberty Gold).

Core drilling at Black Pine commenced on Sept. 24. The large-diameter core program will obtain material to fulfill several goals, including: phase 1 metallurgical column testing; specific gravity measurements; gold deportment studies; validation of RC data; and collection of structural, stratigraphic and alteration information.

RC drilling continues with two RC drill rigs in a one-square-kilometre area between the historic A pit, B pit and A basin target.

Goldstrike drilling

Liberty Gold is pleased to announce results from phase 1 2019 drilling from its Goldstrike oxide gold project in southwestern Utah. The drilling program focused on extensions to gold mineralization in three portions of the resource area, namely the Western zone, Main zone and Dip Slope zone, for the purpose of further resource delineation. Mineral resources at Goldstrike currently stand at 57.8 million tonnes grading 0.50 g/t Au for 925,000 indicated ounces and 19.6 million tonnes grading 0.47 g/t Au for 296,000 inferred ounces.

A preliminary economic assessment (PEA) with a mine scoped as a simple, low-cost oxide heap-leach operation using $1,300 (U.S.)/ounce gold price will return an after-tax net present value at a 5-per-cent discount rate (NPV5) of $129.5-million (U.S.), and an after-tax internal rate of return (IRR) of 29.4 per cent. At the current gold price of $1,500 (U.S.)/ounce, a sensitivity analysis shows an after-tax NPV5 of $210.6-million (U.S.) and an IRR of 41.5 per cent.

                             GOLDSTRIKE DRILL HIGHLIGHTS*
Hole ID            From       To    Intercept          Au   Au cut-off   Hole length
                    (m)      (m)          (m)       (g/t)        (g/t)           (m)

PGS696              0.0      7.6          7.6        1.00          0.2         121.9
and                22.9     32.0          9.1        0.55
PGS697              1.5     22.9         21.4        0.80          0.2          91.4
PGS703             18.3     67.1         48.8        0.39          0.2          86.9
PGS708              0.0     33.5         33.5        0.32          0.2         102.1
PGS713             93.0    112.8         19.8        1.40          0.2         121.9
incl.             100.6    109.7          9.1        2.79            1
PGS714             89.9    108.2         18.3        0.71          0.2         140.2
PGS726             59.4     80.8         21.3        0.75          0.2          91.4
PGS727              3.0     12.2          9.1        0.30          0.2          48.8
and                27.4     36.6          9.1        0.59
PGS728             24.4     32.0          7.6        0.56          0.2          64.0
and                36.6     61.0         24.4        0.60          0.2
PGS733              7.6     35.1         27.4        1.15          0.2          61.0
incl.              24.4     30.5          6.1        3.39            1
PGS736             68.6    123.4         54.9        0.50          0.2         146.3
PGS737             62.5     82.3         19.8        0.45          0.2         121.9

* A number of mineralized intervals were omitted from this table for brevity. 
Please refer to the full table at the company's website for complete results.  

Key points:

  • Drilling in all three areas identified new gold mineralization, with further drilling warranted.
  • At the Dip Slope zone, gold mineralization was encountered in holes PGS713 and PGS714, 300 m to the west of any previous drilling in the Dip Slope area.
  • Also in the Dip Slope zone, hole PGS733 tested a northwest-trending mineralized structure. Additional drilling is warranted along a 150 m long gap along the structure.
  • Hole PGS736 tested a large gap in the geologic and resource model in the middle of the Main zone.
  • Drilling in each of these areas demonstrates that mineralization in the resource model is open to extension.

Kinsley drilling

A 1,600-metre RC drill program will commence at Kinsley on Oct. 20. Drill holes will target the eastward extension of the Western Flank high-grade sulphide resource that includes 284,000 indicated ounces at an average grade of 6.04 g/t Au. A new target in the central portion of the Kinsley gold trend will also be tested.

About Goldstrike

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.

A virtual site tour and 3-D model of Goldstrike are available on the company's website.

About Black Pine

Black Pine is located in the northern Great basin, immediately adjacent to the Utah/Idaho border. It is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada's Carlin trend. Like Newmont's Long Canyon deposit, Black Pine represents 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 Black Pine mine operated from 1992 to 1997, during a period of historically low gold prices, with 435,000 ounces of gold produced from five composite shallow pits, at an average grade of 0.63 g/t Au and average recovery of approximately 66 per cent.

A virtual site tour and 3-D model of Black Pine property, including details about the geology and mineralization, are available on the company's website. A technical report also available on the company website.

Dr. Moira Smith, PhD, PGeo, vice-president of 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 and has reviewed and validated that the information contained in the release is accurate. 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 per cent of the reported lengths due to varying drill hole orientations, but are typically in the range of 60 to 100 per cent of true width. Drill samples were assayed by ALS Ltd. in Reno, Nev., for gold by fire assay of a 30-gram (one assay ton) charge with an AA finish, or if over 5.0 g/t were reassayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.20 part per million an additional cyanide leach analysis is done where the sample is treated with a 0.25 per cent sodium cyanide solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by atomic absorption spectroscopy. Quality assurance/quality control 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-multielement geochemical suite by ICP-MS (inductively coupled plasma mass spectrometry). ALS Geochemistry-Reno is ISO 17025:2005 accredited, with the Elko prep lab listed on the scope of accreditation.

About Liberty Gold Corp.

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. The company knows the Great basin and is driven to discover and advance big gold deposits that can be mined profitably in open-pit scenarios. Its 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.

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