VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 13, 2017) – Liberty Gold Inc. (TSX:LGD) (“Liberty Gold” or the “Company”) is pleased to announce results from 4 reverse circulation (RC) holes drilled at the Western Flank East Extension Target at the Kinsley Mountain Project in eastern Nevada. The drill program is part of an ongoing effort to test new targets and expand sparsely-drilled targets at Kinsley.
Highlights from the Western Flank East Extension Target include:
- From the Secret Canyon Shale Zone (lower host):
- 5.30 grams per tonne gold (g/t Au) over 29.0 metres (m) including 7.84 g/t Au over 16.8 m in PK221
- 3.68 g/t Au over 3.0 m in PK224
- From the Dunderberg Shale Zone (upper host):
- 12.4 g/t Au over 4.6 m including 35.1 g/t Au over 1.5 m in PK221
- 6.84 g/t Au over 7.6 m including 12.8 g/t Au over 3.0 m in PK224
The Western Flank East Extension Target is located immediately east of the Western Flank deposit.
The sulphide resource at the Western Flank, hosted in the Secret Canyon Shale, is currently estimated at 284,000 Indicated ounces of gold grading 6.04 g/t, and 39,000 Inferred ounces grading 2.41 g/t gold. (See December 17, 2015 press release, and the Kinsley Technical Report available on the Company’s website at www.libertygold.ca or under Liberty Gold’s SEDAR profile at www.sedar.com.)
The Western Flank East Extension Target is located immediately east of the resource area, and had yielded several high-grade intercepts in previous drilling, including:
- 6.15 g/t Au over 7.6 m (Secret Canyon Shale host) in PK200
- 2.34 g/t Au over 9.1 m (Dunderberg Shale host) in PK208 and
- 3.46 g/t Au over 18.3 m including 13.7 g/t Au over 3.0 m (Secret Canyon Shale host) in PK208
- 2.95 g/t Au over 13.7 m (Secret Canyon Shale host) in PK210
The new drill holes link gold mineralization in the Western Flank deposit to drill holes PK208 and PK210, 150 m to the east, and provide impetus for further drilling in this sparsely tested area, which remains open to infill and extension in all directions for both stratigraphic horizons.
Three additional holes were drilled in the current program. One drill hole tested the Dunderberg Shale and returned 1.37 g/t Au over 3.0 metres, but was lost above the Secret Canyon Shale target. Another hole tested stratigraphy to the southeast of the historic mine. It did not return a mineralized intercept, but it did confirm the presence of the prospective Secret Canyon Shale at shallow depth.
For a complete table of drill results for the current holes, please click here: http://libertygold.ca/images/sites/default/files/KinsleyIntercepts17-13.pdf
For a map of drill collars and traces for the current release, please click here: http://libertygold.ca/images/sites/default/files/KinsleyNR17-13.jpg
Western Flank Target Area
The Western Flank deposit was discovered in late 2013 in the Secret Canyon Shale Formation, which lies below the Dunderberg Shale, host to shallow oxide resources and past-production at Kinsley, and was previously unrecognized as a potential host to mineralization (November 18, 2013 press release). In late 2015, Liberty Gold released a resource estimate for the Kinsley deposit, including a separate estimation for the Western Flank Zone (November 5, 2015 press release). Metallurgical testing of sulphide material from the Western Flank Zone returned excellent recoveries and concentrate grades, suggesting that the gold may be amenable to extraction using low capital cost, conventional flotation methods (January 19, 2015 press release).
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. Metallic screen techniques may be employed where the presence of coarse free gold is suspected. Approximately 1000 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. 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.
Further information on Kinsley is available in the technical report entitled “Updated Technical Report and Estimated Mineral Resources for the Kinsley Project, Elko and White Pine Counties, Nevada, U.S.A.”, effective October 15, 2015, dated December 16, 2015 and prepared by Michael M. Gustin, CPG, Moira Smith, Ph.D., P.Geo. and Gary Simmons, B.Sc. MMSA (the “Kinsley Technical Report”), available on the Company’s website at www.libertygold.ca or under Liberty Gold’s SEDAR profile at www.sedar.com.
Kinsley Mountain hosts near-surface oxide mineralization similar to other Carlin-style, sediment-hosted gold systems, as well as high-grade sulphide mineralization that was only recently itentified. The property consists of 513 unpatented lode claims on U.S. Bureau of Land Management land plus 6 leased patents totaling 4213 hectares, and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.
The Company holds approximately 79.1% of Kinsley. Intor Resources Corporation, a subsidiary of Nevada Sunrise Gold Corp., is the Company’s joint venture partner at Kinsley.
ABOUT LIBERTY GOLD
Liberty Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our flagship property is the Goldstrike Oxide Gold Project in Utah. Liberty also has a pipeline of projects, including Black Pine in Idaho and Kinsley Mountain in Nevada, providing a solid platform for future growth. Over the past 5 years, there have been 8 new open-pit, heap leach gold mines built around the world and the management team and/or directors of Liberty Gold are responsible for discovering, developing and/or building two of them. Long Canyon in Nevada (Fronteer Gold) and Karma in Burkina Faso (True Gold) both reached commercial production in 2016.
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. 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 licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, timing and likelihood of deployment of additional drill rigs, 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 28, 2017 in the section entitled “Risk Factors”, under Liberty Gold’s SEDAR profile at www.sedar.com.
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.