Liberty Gold Announces Assay Results from Metallurgical Core Drilling, Goldstrike Oxide Gold Project, Great Basin, USA 0.79 g/t Au over 69.6 m including 2.46 g/t Au over 7.6 m 1.41 g/t Au over 36.9 m
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NEWS RELEASE 18-16 August 28, 2018
Liberty Gold Announces Assay Results from Metallurgical Core Drilling, Goldstrike Oxide
Gold Project, Great Basin, USA
0.79 g/t Au over 69.6 m including 2.46 g/t Au over 7.6 m
1.41 g/t Au over 36.9 m
VANCOUVER, B.C. – Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased
to announce 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
1 See press release dated February 8, 2018
2 See the “Preliminary Economic Assessment and Independent Technical Report for the Goldstrike Project, Washington County, Utah USA”, e ffective February 8, 2018 and
signed July 16, 2018 authored by Independent Qualified Persons Bob McCarthy, P.Eng. Valerie Sawyer, SME , David Rowe, CPG and Neil Winkelmann, FAusIMM of SRK
Consulting (Canada) Inc.; Gary Simmons, MMSA of GL Simmons Consulting, LLC; James N. Gray, P.Geo. of Advantage Geoservices L td; George Lightwood, SME, Russell Browne,
P.E. and Michael Bidart, P.E. of Golder Associates Inc.; and Carl Defilippi, RM SME of Kappes Cassidy & Associates , and is in accordance with National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects. The report is available under the Company’s profile at sedar.com and is also available on the Company’s website at
www.libertygold.ca.
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KEY POINTS
• 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.
For a complete table of drill results from the current holes, please click
here: http://libertygold.ca/images/sites/default/files/GS_Intercepts08282018.pdf
For a map of drill collars and traces for the current release, please click
here: http://libertygold.ca/images/sites/default/files/Goldstrike_NR08282018.pdf
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
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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.
For more information, visit www.libertygold.ca or contact:
Susie Bell, Manager, Investor Relations
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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, expected capital costs at Goldstrike, expected gold and silver recoveries
from the Goldstrike mineralized material, potential additions to the resource through additional drill testing, potential upgrade of inferred mineral
resources to measured and indicated mineral resources, the potential for silver resources at Goldstrike and intentions to pursue a silver resource
study and beliefs regarding gold resources being contained within a larger property area. 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, accuracy of any mineral resources,
the availability of drill rigs, the accuracy of a preliminary economic assessment, 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 26, 2018 in the section entitled "Risk Factors", under Liberty Gold’s SEDAR profile
at www.sedar.com.
The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources."
While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities
and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as
to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7
compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted into reserves. Liberty Gold is not an SEC registered company.
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