Liberty Gold drills 36.9 m of 1.41 g/t Au at Goldstrike
LIBERTY GOLD ANNOUNCES ASSAY RESULTS FROM METALLURGICAL CORE DRILLING, GOLDSTRIKE OXIDE GOLD PROJECT, GREAT BASIN, USA
Liberty Gold Corp. has released the results from a large-diameter metallurgical core drilling program at the Goldstrike project, the flagship of its three principal gold projects located in the prolific Great basin of the United States. Located in southwestern Utah, Goldstrike is a past-producing oxide - heap leach gold mine that contains a large, shallow, district-scale, Carlin-style gold system.
Liberty Gold continues to meet its project enhancement goals in 2018, commencing with a maiden resource estimate released in February1. On July 10, 2018, Liberty Gold released a Preliminary Economic Assessment for Goldstrike ("PEA")2, 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 of the Goldstrike Property, a large diameter (PQ) core drilling project was undertaken in order to obtain the material needed to approximately double the number of metallurgical column tests in the resource area from a current 20 columns, primarily located in the Main Zone, to approximately 40, located throughout the resource area. Fifteen PQ diamond core holes, totaling 1,357 metres, were completed.
Drill Highlights include:
0.59 grams per tonne gold (g/t Au) over 8.7 metres (m) and 0.79 g/t Au over 69.6 m including 2.46 g/t Au over 7.6 m in PGS483C 1.41 g/t Au over 36.9 m in PGS486C 0.71 g/t Au over 45.6 m in PGS487C 0.70 g/t Au over 47.4 m in PGS484C 0.67 g/t Au over 33.5 m, including 1.45 g/t Au over 9.8 m in PGS478C 0.33 g/t Au over 36.7 m and 0.41 g/t Au over 18.3 m in PGS488CA
Liberty Gold continues to execute and deliver on its commitment to advance the Goldstrike Project through additional metallurgical drilling throughout the current resource area. The drill holes also infill targets in the Dip Slope and Western resource zones, and results are consistent with previous RC drilling from these areas. Composite selection for column tests is underway, with final results expected in the first half of 2019.
In addition to the core drilling program, a reverse circulation program is currently underway with two drills. To date, over 16,000 m have been drilled, with a low all-in cost for RC drilling of only US$55/m, well under the industry average. The program is focused on 1) infill and expansion of the resource; 2) testing of the historic heap-leach, stockpile and waste dump areas that are largely situated within the PEA pit and counted as waste in the model (see August 16, 2018 press release); and 3) testing of new targets property-wide. 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 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. 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.