Liberty Star Updates the Hay Mountain Project, Southeast Arizona
May 20 2014 - 9:45AM
Business Wire
Liberty Star Uranium & Metals Corp. (“Liberty Star” or the
“Company”)(OTCQB: LBSR) is pleased to update its shareholders and
interested parties on the completion of the compilation and
interpretation of the Hay Mountain porphyry copper geophysical data
along with geochemistry and design of a Phase 1 drill program.
During the last 6 months significant additional details on the
subsurface of the Hay Mountain porphyry copper geochemical anomaly
have come to light. These are enumerated in approximate
chronological order:
- Detailed interpretation of the
ZTEM geophysical survey revealed that the anomaly is much larger
than previously realized. Based on the analysis of all the data, it
is now realized that it could contain the footprint of any of the
largest porphyry copper deposits known in North America. Additional
geophysical interpretive work on the abundant geophysical data was
clearly warranted.
- The electromagnetic component of the
ZTEM system shows conductors going to a depth of at least
1,520m (approx. 5,000 feet), which would be commensurate with the
base of the Paleozoic sediments and their depositional contact with
the Precambrian basement rocks. This is similar to the
mineralization at Bisbee, Christmas, Twin Buttes, Rosemont and
Morenci, Arizona and Cananea, Mexico, all within about 161 km (100
miles) of Hay Mountain, and all are sediment (skarn) hosted
porphyry copper mines.
- The detailed magnetic component of
the ZTEM survey allows the three dimensional analysis of
the very large magnetic feature which is coincident with the
geochemical porphyry copper signature and low resistivity
signatures from the electromagnetic (EM) component. This magnetic
resonance imaging (MRI – just like physicians use – except in our
case it is helicopter borne, not stationary in an office – and of
course the scale is different), reveals important details of what
is comparable to known mineral bearing skarn in other districts in
North and South America, and throughout the world. Skarn (altered
limestone – see Liberty Star’s glossary on web site) frequently
contains high grade copper, gold, molybdenum, tungsten and other
metals. This is a common host for the nearby Bisbee mines where
early day production ranged from 7% to 30% copper. Other deposits
within about 241 km (150 miles) at Morenci, Silver Bell, Mission,
Twin Buttes, Rosemont, Globe and Christmas, Arizona, Chino, New
Mexico and Cananea, Mexico and others as well as mines in other
parts of the world have similar grades in skarn bodies.
- The 3D magnetic data suggest the
upper part of the skarn bodies lie 30 to 90 meters (approx. 100 to
300 feet) below dirt cover. Their magnetic signature suggests the
upper 30 to 90 meters or more is oxidized and copper would be in
oxide form that would allow shallow open pit mining, heap leaching
solvent extraction and electrowinning (OPHLSXEW) to produce 99.99%
wire grade copper as seen at the new Safford, Arizona mine and
others. It might also be like the nearby Bisbee deposit which
produced an astounding number of museum quality green copper oxide
and other mineral specimens of great value.
- Analysis of the data generated in
the studies identified above has made it possible to lay out a
targeted drill program. Recent consultation with directional
drilling contractors suggests that a significant reduction of the
number of drill sites can be made. This will minimize surface
disruption and allow the drilling of one mother hole and up to 8
daughter holes from one drill site. This should significantly
reduce the cost of drilling, as the directional daughter holes will
save penetrating repeatedly to the daughter hole kick off depth.
This directional drilling is similar to oil field standard
procedure.
- The availability of new
equipment. Largely dependent on new high speed microcomputers,
combined with the Internet suggest a more efficient approach to the
rapid drilling this project will require.
- Development time and financing
availabilityBriscoe has been told by well-capitalized investors
during his world travels over the last 11 months that no more than
seven years is an acceptable time for exploration and start of
production. In response, the Company has designed a drilling
exploration program to operate 24/7/365 for four years assuming ore
grade material is intercepted. A mine would go into production in
the seventh year. If a near surface oxide copper ore body is
present (like the nearby Johnson Camp Mine and I-10
Porphyry-Excelsior proposed mines), as suggested by the geophysics,
such production on a moderate scale from a shallow pit could be
feasible, thus greatly simplify this very tight schedule. Continued
enlargement of facilities could consist of a build out of a large
deep high grade underground mine or a much larger open pit mine or
both; or perhaps a block cave operation.
Required capital funding for the Hay Mountain Project would be
Phase 1 drilling at US $5 million to be expended in the first year
to confirm presence of ore grade mineralization. Post phase 1
drilling activities in the amount of US $60 million are to be
expended over the next three years. Assuming success in defining
a mineral resource, permitting, metallurgical studies,
and mine planning and plant design would quickly follow as would a
Bankable Feasibility Study, which would be completed at the end of
year five. Production would follow and is projected to be attained
in the seventh year.
“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ
CACEO/Chief GeologistLiberty Star Uranium & Metals Corp.
Forward-Looking
Statements
Statements in this news release that are not historical are
forward-looking statements. Forward-looking statements in this news
release include: that a porphyry copper system is indicated; that
Phase 1 drilling will cost US $5 million to be expended in the
first year. Post phase 1 drilling activities in the amount of US
$60 million are to be expended over the next three years. That
assuming success in defining a mineral resource, permitting,
metallurgical studies, and mine planning and plant design would
quickly follow as would a Bankable Feasibility Study, which would
be completed at the end of year five. Production would follow and
is projected to be attained in the seventh year.
Factors which may delay or prevent these forward-looking
statements from being realized include misinterpretation of data;
we may not be able to get equipment or labor as we need it; we may
not be able to raise sufficient funds to complete our intended
exploration or carry on operations; that weather, logistical
problems or hazards may prevent us from exploration; that equipment
may not work as well as expected; that analysis of data may not be
possible accurately and at depth; and that despite encouraging data
there may be no commercially exploitable mineralization on our
properties. Readers should refer to the risk disclosures outlined
in the Company’s recent S-1, its 10-K and the Company’s other
periodic reports filed from time to time with the Securities and
Exchange Commission.
Agoracom Investor
Relationslbsr@agoracom.comhttp://agoracom.com/ir/libertystarorLiberty
Star Uranium & Metals Corp.Tracy Myers, 520-425-1433Investor
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