Liberty Gold Corp. (TSX: LGD; OTCQX: LGDTF) (“Liberty Gold” or the
“Company”) is pleased to announce an update to the independent
Mineral Resource Estimate (the “Resource” or “MRE”) at its Black
Pine Oxide Gold Project (“Black Pine”) in southeastern Idaho.
- The Resource is
reported at a cut-off grade (“COG”) of 0.2 grams per tonne (“g/t”)
gold (“Au”) and consists of:
-
Indicated resources of 3,206,000 oz Au at an
average grade of 0.49 g/t Au and totalling 203.8 million tonnes
(“Mt”); and
- Inferred
resources of 325,000 oz Au at an average grade of 0.42 g/t
Au and totalling 24.1 Mt.
- A high-grade
subset of the Resource contained within the 0.2 g/t Au resource
pit, applying a COG of 0.5 g/t Au and consists of:
-
Indicated resources of 1,765,000 oz Au at an
average grade of 1.01 g/t Au and totalling 54.2 Mt; and
- Inferred
resources of 143,000 oz Au at an average grade of 0.91 g/t
Au and totalling 4.9 Mt.
The updated MRE represents an increase of
593,000 Indicated gold ounces from the 2023 estimate (see press
release dated February 7, 2023).
Jon Gilligan, President and COO of
Liberty Gold stated, “This updated Mineral Resource
Estimate represents an important milestone for the Black Pine
project, passing 3 million gold ounces in the Indicated class. The
new resource solidly underpins the Pre-Feasibility Study, which is
on track for completion in the third quarter 2024”.
For maps, cross sections and a sensitivity
analysis table of the Black Pine Mineral Resource block model,
please click
here:http://ml.globenewswire.com/Resource/Download/7d97ab11-3f2c-4192-80e7-089619ebf171
IMAGE 1: MAP OF THE BLACK PINE MINERAL
RESOURCE BLOCK MODEL
TABLE 1: BLACK PINE UPDATED MINERAL
RESOURCE ESTIMATE BY ZONE
Zone |
Classification |
(000)tonnes |
g/t Au |
(000) oz Au |
% TonnesInd & Inf |
% oz TotalResource |
Discovery Zone |
Indicated |
92,953 |
0.53 |
1,598 |
92 |
48 |
Inferred |
7,820 |
0.42 |
105 |
8 |
Rangefront Zone |
Indicated |
78,009 |
0.44 |
1,098 |
93 |
34 |
Inferred |
5,761 |
0.49 |
91 |
7 |
CDF Zone |
Indicated |
19,996 |
0.40 |
259 |
87 |
8 |
Inferred |
3,019 |
0.40 |
39 |
13 |
M Zone |
Indicated |
4,070 |
0.72 |
95 |
92 |
3 |
Inferred |
349 |
0.36 |
4 |
8 |
Back Range Zone |
Indicated |
4,693 |
0.62 |
94 |
90 |
3 |
Inferred |
547 |
0.56 |
10 |
10 |
E Zone |
Indicated |
2,604 |
0.46 |
39 |
44 |
2 |
Inferred |
3,334 |
0.33 |
35 |
56 |
J Zone |
Indicated |
1,447 |
0.50 |
23 |
31 |
2 |
Inferred |
3,256 |
0.39 |
41 |
69 |
Total Resource |
Indicated |
203,771 |
0.49 |
3,206 |
89 |
91 |
Inferred |
24,085 |
0.42 |
325 |
11 |
9 |
Notes:
- CIM (2014) definitions were
followed for Mineral Resources.
- Mineral Resources are reported
within conceptual open pits estimated at a gold cut-off grade of
0.20 g/t, using a long-term gold price of US$1,800 per ounce and a
variable gold leach recovery model derived from extensive
metallurgical studies.
- Bulk density is variable by rock
type.
- There are no Mineral Reserves.
- Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
- Rounding as required by reporting
guidelines may result in apparent discrepancies between tonnes,
grades, and contained gold content.
- The effective date of the Mineral
Resource estimate is February 15, 2024.
- The estimate of mineral resources
may be materially affected by geology, environment, permitting,
legal, title, taxation, sociopolitical, marketing, or other
relevant issues.
- The MRE was prepared by SLR
Consulting (Canada) Ltd., Toronto, Canada (“SLR”).
RESOURCE ESTIMATE – CUT-OFF GRADE
SENSITIVITYThe average grade of the deposit within the
limits of the 0.20 g/t Au resource pit shell reflects a wide range
of block grades. At successively higher cut-off grades, a sizeable
portion of the deposit remains (Table 2). At a block COG of 0.50
g/t Au, 1,765,000 Indicated ounces at an average grade of 1.01 g/t
Au and 143,000 Inferred ounces at an average grade of 0.91 g/t Au
remain. This higher-grade core of the mineralization continues to
grow with additional drilling.
TABLE 2: RESOURCE GRADE DISTRIBUTION AT
SUCCESSIVELY HIGHER CUT-OFF GRADES WITHIN THE 0.2 G/T AU REPORTING
PIT*
Block cut-off grade |
Classification |
(000) tonnes |
g/t Au |
(000) oz Au |
0.20 g/t |
Indicated |
203,771 |
0.49 |
3,206 |
Inferred |
24,085 |
0.42 |
325 |
0.22 g/t |
Indicated |
179,020 |
0.53 |
3,040 |
Inferred |
20,932 |
0.45 |
303 |
0.25 g/t |
Indicated |
150,029 |
0.58 |
2,821 |
Inferred |
16,725 |
0.51 |
271 |
0.30 g/t |
Indicated |
115,997 |
0.68 |
2,522 |
Inferred |
12,245 |
0.59 |
232 |
0.50 g/t |
Indicated |
54,249 |
1.01 |
1,765 |
Inferred |
4,922 |
0.91 |
143 |
*Please refer to the notes accompanying Table 1,
above, for additional information. The Black Pine updated MRE is
shown in bold and italic font.
TABLE 3: SENSITIVITY ANALYSIS USING
LOWER CUT-OFF GRADES*
Cut-off (g/t Au) |
Classification |
(000) tonnes |
g/t Au |
(000) oz Au |
waste : I+Itonnes ratio |
0.20 g/t |
Indicated |
203,771 |
0.49 |
3,206 |
2.98 |
Inferred |
24,085 |
0.42 |
325 |
0.17 g/t |
Indicated |
260,830 |
0.43 |
3,575 |
2.24 |
Inferred |
33,035 |
0.36 |
388 |
0.10 g/t |
Indicated |
439,524 |
0.31 |
4,406 |
1.03 |
Inferred |
67,942 |
0.26 |
576 |
*Please refer to notes accompanying Table 1,
above. The reporting MRE is shown in bold and
italic font. Tonnes, grade and ounces are expressed within
a series of nested pit shells generated at USD$1800/ounce gold
whereby only the material above each cut-off grade is
processed.
KEY POINTS
- The 2023 work
program resulted in a MRE increase of 593,000 Indicated gold ounces
from the 2023 mineral resource estimate. The updated Indicated
resource of 3,206,000 gold ounces will form the basis of the
on-going Pre-Feasibility Study (“PFS”) being conducted on Black
Pine. Work is progressing on track for a Q3, 2024 release.
- An analysis of
the mineralization at lower cut-off grades, suggests that
significant upside potential exists for recovery of additional
ounces in a future mine at Black Pine by applying operational
cut-off grades similar to run-of-mine oxide operations in the Great
Basin.
- This Mineral
Resource Update includes an additional 199 Reverse Circulation
(“RC”) totaling 39,426 metres (“m”) drilled by Liberty Gold in late
2022 and in 2023. Combining historic and Liberty Gold drilling
results in a total of 2,821 drill holes representing 422,142 m of
drilling contributing to the new resource.
- Based on
exploration drilling costs for 2023, additional ounces added in
this Mineral Resource update reflect a <$10/ounce discovery
cost.
- The updated MRE
is supported by extensive metallurgical testing on 124 variability
composites completed. (See press release dated March 22,
2023).
ESTIMATION METHODSThe resource
estimate was completed by Valerie Wilson, M.Sc., P.Geo., Principal
Resource Geologist at SLR. Ms. Wilson is an Independent Qualified
Person as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”). The resource
estimate was prepared in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral
Resources and Mineral Reserves, adopted by the CIM Council, as
amended. Estimation methods are summarized below:
- The gold mineral
resources at the Black Pine Project were modeled and estimated by:
- Developing a geological model, in
Leapfrog Geo reflecting low-angle fault control and stratigraphic
control of mineralization hosted in receptive carbonate host
rocks;
- Evaluating the drill data
statistically;
- Interpreting low (0.1 g/t Au) and
high-grade (0.3 g/t Au for Rangefront and 0.5 g/t Au for all other
areas) gold-domains using Leapfrog Geo;
- Compositing data to 3.048 metres
(10 feet) within the gold domains;
- Coding a unified block model
comprised of 10 x 10 x 5 (x, y, z) metre blocks from seven 2.5 x
2.5 x 1.25 sub-blocked models;
- Analyzing the modeled
mineralization geostatistically to aid in the establishment of
interpolation and classification parameters;
- Interpolating gold grades using
inverse distance cubed (ID3) and a three-pass interpolation
strategy into the model blocks in Leapfrog Edge using the mineral
domain coding to explicitly constrain the gold grade estimations;
and,
- Evaluating, statistically and
visually, the resulting model in detail prior to finalizing the
mineral resource estimation.
- The Black Pine Deposit mineral
resource has been constrained by optimized pit shells created using
a gold price of USD$1,800/ounce and pit slopes ranging from 45 to
47 degrees. Additional inputs for the pit-optimizations include:
Mining - $2.35/tonne mined, heap leaching - $2.00/tonne processed;
and G&A cost of $0.80/tonne processed at an assumed 10 million
tonnes per year processing rate. Gold recoveries are based on
equations derived from metallurgical data and vary by grade and
rock unit. A 0.5% net smelter return royalty was also applied.
- The Company has concluded that a
Technical Report update is not required with this new Mineral
Resource and will include the resource estimate update into the
Pre-feasibility Technical Report expected to be completed in Q3
2024.
The technical information contained in this news
release has been reviewed and approved by Valerie Wilson, M.Sc.,
P.Geo, Principal Resource Geologist for SLR Consulting, an
Independent Qualified Person as defined by NI 43-101. Ms. Wilson
has verified the data disclosed including sampling, analytical, and
test data underlying the drill results, using a variety of
techniques including comparison against independently sourced assay
certificates, site visit investigations, and digital based
verification tests, and she consents to the inclusion in this
release of said data in the form and context in which it appears.
Ms. Wilson experienced no limitations with respect to data
verification activities related to the Black Pine project.
ABOUT BLACK PINEBlack 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 Nevada Gold Mine’s Long Canyon deposit, Black Pine
represents a growing number of Carlin-style gold systems located
off the main Carlin and Cortez trends in under-explored 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.
Gold mineralization at Black Pine is hosted in a
100 to 500 m-thick package of receptive, faulted carbonate rocks of
the Pennsylvanian Oquirrh Formation. The rocks show evidence of
extensive decalcification and clay alteration typical of
Carlin-style gold deposits and are strongly oxidized over the
entire extent of the 14 km2, exposed portion of the gold
system.
Metallurgical column test results received to
date indicate rapid gold recoveries, relatively insensitive to
crush size, which support a simple, low-cost process.
QUALIFIED PERSONPeter
Shabestari, P.Geo., Vice-President Exploration, 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.
ABOUT LIBERTY GOLDLiberty Gold
is focused on exploring for and developing open pit oxide deposits
in 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.
For more information, visit libertygold.ca or contact:
Susie Bell, Manager, Investor Relations Phone:
604-632-4677 or Toll Free 1-877-632-4677 info@libertygold.ca
QUALITY ASSURANCE – QUALITY
CONTROLDrill composites were calculated using a cut-off of
0.10 g/t Au. 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 50% to 90% 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 Au 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 0.10 parts per million 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 Atomic Absorption
Spectroscopy. 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 and Twin Falls prep lab
listed on the scope of accreditation.
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, the potential size of the
mineralized zone, the proposed timing of exploration and
development plans, proposed timing of a PFS, the expansion and
future resource growth expected at Black Pine, expected capital
costs at Black Pine, expected gold recoveries from the Black Pine
mineralized material, the potential upgrade of inferred mineral
resources to measured and indicated mineral resources, the
potential for future additions to the current mineral resource
estimate, the 2024 work program and the results thereof, the timing
and results of any resource updates and the planned development
work at Black Pine. 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, the
availability of 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; the timing of the publication of
any updated resources; 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, 2023
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.
Cautionary Note for United States Investors
The information in this news release, including
any information incorporated by reference, and disclosure documents
of Liberty Gold that are filed with Canadian securities regulatory
authorities concerning mineral properties have been prepared in
accordance with the requirements of securities laws in effect in
Canada, which differ from the requirements of United States
securities laws.
Without limiting the foregoing, these documents
use the terms “measured resources”, “indicated resources”,
“inferred resources” and “probable mineral reserves”. Shareholders
in the United States are advised that, while such terms are defined
in and required by Canadian securities laws, the United States
Securities and Exchange Commission (the “SEC”) does not recognize
them. Under United States standards, mineralization may not be
classified as a reserve unless the determination has been made that
the mineralization could be economically and legally produced or
extracted at the time the reserve determination is made. United
States investors are cautioned not to assume that all or any part
of measured or indicated resources will ever be converted into
reserves. Further, inferred resources have a great amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. It cannot be assumed that all or any
part of the inferred resources will ever be upgraded to a higher
resource category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility,
pre-feasibility or other technical reports or studies, except in
rare cases. Therefore, United States investors are also cautioned
not to assume that all or any part of the inferred resources exist,
or that they can be mined legally or economically. Disclosure of
contained ounces is permitted disclosure under Canadian
regulations; however, the SEC normally only permits issuers to
report resources as in place tonnage and grade without reference to
unit measures. Accordingly, information concerning descriptions of
mineralization and resources contained in these documents may not
be comparable to information made public by United States companies
subject to the reporting and disclosure requirements of the
SEC.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/219cb7cf-76b5-4544-897e-cd7a1cf166b9
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