Liberty Gold Announces Preliminary Feasibility Study Results for the Black Pine Oxide Gold Project in Idaho, with a 17-year Mine Life and a 32% After-Tax Internal Rate of Return
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News Release 24-20 October 10, 2024
Liberty Gold Announces Preliminary Feasibility Study Results for the
Black Pine Oxide Gold Project in Idaho, with a
17-year Mine Life and a 32% After-Tax Internal Rate of Return
Open pit, run-of-mine (no crushing) heap leach operation with a one-year
construction period and initial capital expenditure of $327 million
Average annual production of 183 thousand ounces of gold in years 1 to 5
with Life-of-Mine average annual production of 135 thousand ounces of gold
All-In Sustaining Cost for years 1 to 5 of $1,205 per ounce of gold and LOM
AISC of $1,380 per ounce of gold
$552 million After-Tax Net Present Value (5%) with a 32% After-Tax Internal Rate
of Return and a 3.3 year payback at a base case gold price of $2,000 per ounce
VANCOUVER, B.C. – Liberty Gold Corp. ( TSX:LGD; OTCQX:LGDTF) ("Liberty Gold" or the
"Company") is pleased to announce the results of a Pre liminary Feasibility Study (“PFS” or the
“Study”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”) at its flagship Black Pine Oxide Gold Project (“Black Pine” or the
“Project”) in southern Idaho, USA . The Study supports a technically straight-forward, low capital
intensity, open-pit, run-of-mine (“ROM”) (no ore crushing, screening or agglomeration) heap-leach
operation processing oxide gold ore, with attractive economic returns.
This news release should be read in combination with the Study presentation slide deck available
at this link: https:/ /libertygold.ca/images/news/2024/October/BlackPineProjectPFSDeck.pdf
The Study assumes a base-case gold price of $2,000/ounce (“oz”) and all figures in this news release
are stated in United States dollars (“$” or “US$”) unless otherwise noted. Table 1 below presents a
summary of the key metrics for the Black Pine PFS.
Cal Everett, CEO and Director of Liberty Gold commented: “This PFS highlights the strong economic
potential at Black Pine , representing our vision for a low -risk, sustainable and long -lived gold mining
operation in Idaho. It demonstrates the Project’s ability to exploit higher grades early in the mine life,
allowing for solid cash flows over the first five years, with a production profile that reduces the payback
period and maximizes the initial return for our investors. The PFS mine plan produces more than 2 million
ounces of gold over a projected mine life of 17 years, creating a solid pathway towards mine permitting,
project advancement and a future construction decision.”
“We believe there is significant upside for project optimization and resource growth going into a full
feasibility study. Growth will be driven by new resource discovery from multiple target areas, upgrade of
inferred mineral resources into the measured and inferred mineral resource categories and assessment
of gold production potential from the reclaimed heap leach pad. Work in many of these areas is already
beginning to yield encouraging results. We look forward to keeping the market apprised of our progress.”
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Table 1: Key Black Pine Project Metrics
Project Economics Base Case Spot Price
Gold Price $2,000/oz $2,600/oz
Pre-tax Net Present Value (“NPV”) (5%) $658 million $1,575 million
Pre-tax Internal Rate of Return (“IRR”) 35% 67%
Operating Pre-Tax Cash Flow $1,042 million $2,352 million
After-Tax NPV (5%) $552 million $1,296 million
After-Tax IRR 32% 62%
After-Tax Cash Flow $873 million $1,921 million
After-Tax Payback Period 3.3 years 1.5 years
Production Profile
Mine Life 17 years
Ore to Leach Pad 50,000 tonnes per day
Total Tonnes of Ore Mined and Processed 299 million tonnes
Head Grade (years 1-5) 0.45 grams per tonne ("g/t")
Head Grade (Life-of-Mine “LOM”) 0.32 g/t
Strip Ratio (Waste:Ore) 1.3:1
Average Gold Recovery 70.4%
Total Gold Ounces Recovered 2,191 koz1
Average Annual Gold Production (Yr 1-5) 183 koz
Peak Annual Gold Production 231 koz
Average Annual Gold Production (LOM) 135 koz
Unit Operating Costs
LOM Operating Cost $9.10/tonne processed
LOM Total Cash Cost 2 $1,249/oz
LOM AISC 2 $1,380/oz
Total Capital Costs
Initial Capital2 $327 million
LOM Sustaining Capital $219 million
LOM Total Capital $546 million
Closure Costs $54 million
1 “koz” refers to thousand ounces 2Refer to “Non-GAAP Measures and Other Financial
Information” below
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Conference Call and Webcast
Liberty Gold will be hosting a conference call and webcast to discuss the results of the PFS:
Webcast
Date: Thursday, October 10th
Time: 11:00 am Eastern Time (8:00 am Pacific Time)
Please register for the webcast here: https:/ /edge.media-server.com/mmc/p/ve6u4vr3
Conference Call
Tol l-free in U.S. and Canada: +1.888.596.4144
International callers: +1.646.968.2525
Conference ID: 5058354
The conference call will be archived for later playback until October 17, 2024, and can be accessed by dialing Toll -free in U.S. and
Canada: +1.800.770.2030 or To l l: +1.609.800.9909 using the Playback ID 5058354#.
Project Economics Sensitivity Analysis
A sensitivity analysis was carried out on the after-tax financial metrics from the PFS base case to
illustrate the Project’s sensitivity to commodity prices, initial capital and operating costs. Results
are illustrated in T ables 2 and 3 (all figures in US dollar millions unless otherwise indicated).
Table 2: After-tax NPV (5%), IRR and Payback Sensitivity to Gold Price
Gold Price ($/oz) $1,700 $1,850 $2,000 $2,150 $2,300 $2,450 $2,600
After-Tax NPV (5%) ($M) $174 $362 $552 $739 $924 $1,110 $1,296
After-Tax IRR (%) 15% 24% 32% 40% 47% 55% 62%
Payback (years) 4.3 3.8 3.3 2.4 1.8 1.7 1.5
Table 3: After-Tax NPV (5%) and IRR sensitivity to Changes in Project Parameters & Gold Price
Gold Price/oz
After-tax NPV (5%) in $M Change $1,850 $2,000 $2,300 $2,600
T otal Capital Costs
15% $323 $512 $884 $1,256
0% $362 $552 $924 $1,296
-15% $403 $593 $965 $1,336
Operating Costs
15% $131 $323 $701 $1,072
0% $362 $552 $924 $1,296
-15% $591 $776 $1,148 $1,516
Gold Price/oz
After-Tax IRR (%) Change $1,850 $2,000 $2,300 $2,600
Total Capital Costs
15% 20% 27% 41% 54%
0% 24% 32% 47% 62%
-15% 29% 38% 56% 73%
Operating Costs
15% 13% 22% 39% 54%
0% 24% 32% 47% 62%
-15% 33% 41% 56% 70%
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PFS Overview
The PFS incorporates geological, assay, hydrological, metallurgical, geotechnical, environmental
and cultural information collected by Liberty Gold and its consultants and contractors, as well as
extensive historic information captured from the previous mining operation on site.
Project Description
Black Pine hosts a large, Carlin -style, sedimentary-hosted oxide gold system, located in
southeastern Cassia County, southern Idaho, USA, a 2-hour drive north from Salt Lake City, Utah.
The currently identified surface footprint of the gold mineralization extends over an approximate
18 square kilometre (“km2”) target area contained within Liberty Gold’s 69.3 km2 project area of
which 40.6 km2 are permitted for exploration activities including drilling. (see press releases dated
June 11, 2024 and September 25, 2024).
Black Pine is a past-producing open-pit, ROM heap leach mine, active from 1991 to 1997 when
Pegasus Gold produced 435,000 oz of gold and 189,000 oz of silver from five open pits. Road
access to the site is well established with the I-84 highway running directly adjacent to the project
area and existing power at the mine gate . The location is sparsely populated, semi-arid, with no
surface water exposed in the project area and no threatened or endangered species.
The production from the Project is subject to a 0.5% net smelter royalty (with a 50% buyback right
to the Company, which has been assumed to be exercised in the economic analysis).
For a 3D video of a run through of the site layout, click on this link: https:/ /youtu.be/ScIQ4cF_QwE
Mining
The PFS utilizes open pit mining with mine planning based on economic pit shells generated by
mine planning software. Ore feed to the leach pad is planned at 50,000 tonnes per day or 18.3
million tonnes per year for the estimated 17-year life of mine. There will be a 9 -month pre -
production period to provide access to higher grade ore horizons for early years processing. There
are significant opportunities to improve mid-life production through resource growth and
conversion ahead of the feasibility study. Lower-grade ores are stockpiled throughout the mine life
and re-handled on to the heap to optimize gold production.
T otal material movement averages 47 million tonnes per year over life of mine, with a peak at 55
million tonnes per year. Ore is sourced from two large multi-phase open pits, together with six
smaller ‘satellite’ open pits. The strip ratio is favourably low at 1.3:1 (waste:ore), resulting from the
extensive envelope of lower -grade oxide gold mineralization surrounding the higher -grade
horizons and permeating through the mass of carbonate host rock units.
The open pit mining at Black Pine is designed as a conventional, owner-operated surface mining
operation, where the owner is res ponsible for planning and executing direct mining and all mine
fleet maintenance, equipment mobilization, supervision, labor, geology and grade control. Blasting
would be performed as a contract service. The PFS mine plan proposes a blended mine fleet of
400 tonne -class hydraulic excavators, 100 tonne -class hydraulic excavators, 11.5 cubic metre
bucket front end loaders, 136 tonne off-highway haul trucks and 64 tonne off-highway haul trucks.
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Metallurgy
Six phases of metallurgical testing have been completed on Black Pine oxide ores, using bulk
samples and predominantly, large diameter PQ core. A total of six bulk samples and 174 variability
composites have been tested at Kappes, Cassiday & Associates in Reno, Nevada and included
extensive geo-metallurgical characterization, comminution testing, bottle roll and column lea ch
testing and environmental characterization of head samples and column residues. The oxide ores
respond very well to cyanide leaching with typically >80% of the leachable gold extracted in the
first 10 days of laboratory column leaching. Modeling of column test data support ROM leaching
as the preferred processing method, with a primary leach cycle of 90 days.
Commercial scale ROM gold and silver grade-recovery models have been developed for the geo-
metallurgical oxide ore types, defined by gold cyanide solubility, location and lithology. The limited
amount of mineralized carbonaceous material present at Black Pine has been extensively modelled
and has been treated as waste rock.
Processing
Gold will be recovered using run-of-mine (no crushing, screening or agglomeration) heap leaching
with material placed by mine haul truck stacking onto a single heap leach pad sited at the eastern
extent of the Project. The pad is designed in four phases to contain up to 315 million dry tonnes
of leachable material, with operational segregation of the oxide ore types in isolated cells on the
leach pad to prevent comingling.
ROM-sized ore will be stacked in 10 metre (“m”) vertical lifts to a maximum heap height of 100 m.
Lime will be added prior to truck dumping on the pad, ore will be ripped and subsequently leached
with dilute cyanide solution using conventional irrigation. L e a c h s o l u ti o n w i l l fl o w b y g r a v i t y
through the heap and be conveyed to the process solution tank. No surface ponds other than an
emergency event pond are included in the PFS design.
Leached gold will be recovered from solution using a 3-train, activated carbon adsorption circuit.
The gold (and any silver) will then be stripped from carbon using a desorption process followed by
electrowinning to produce a precipitate sludge, which is refined on site in a furnace to produce
final doré bars.
Process water is drawn from five existing, active water wells, located within 5 kilometres from the
processing facility. Power is grid supply over an existing 25 kV line to the mine gate.
Cost Estimates
Capital and operating costs were estimated by M3 Engineering for the processing and general and
ad mi n i s t r a tio n c o mpo n e n t s o f t h e P F S c o s t s es ti ma t e; all mi ning costs were estimated by AGP
Mining.
The capital costs estimate presented in Table 4, is considered to have overall accuracy of -20% /
+25%.
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Table 4: Black Pine PFS Capital Cost Breakdown
Capital Costs
Initial Sustaining Total
US$ Million US$ Million US$ Million
Pre-stripping and Stockpile (1) $89.3 $0.0 $89.3
Mine (2) $31.4 $55.9 $87.3
Process $161.4 $121.3 $282.6
Contingency $35.3 $31.4 $66.7
Owners Cost $9.2 $10.6 $19.8
Total Capital Costs(3) $326.6 $219.2 $545.8
1. 13 million tonnes of ore stockpiled during pre-stripping
2. Includes down payment for lease financing of mine equipment
3. Excludes reclamation and closure costs estimated at $54 million
A summary of the operating costs estimate for Black Pine is presented in Table 5. Operating costs
are based on ownership and owner’s direction of all mine and processing equipment and facilities.
Reclamation and closure costs estimated from first principles at $54 million and validated with a
Nevada Standardized Reclamation Cost Estimator model, are additional to sustaining capital costs
illustrated in Table 4 and are included in the Project economic evaluation.
The mining costs are based on quotes for mining equipment and estimated owners’ costs. The PFS
base case assumes the mine fleet is leased with the mine operating cost carrying the annual lease
payment. Processing costs were estimated by M 3 Engineering and New Fields, based on first
principles, assuming the owner employs and directs all operations and maintenance for all site
facilities. Labor costs were estimated using Idaho labor rates and specific staffing requirements.
Unit consumption of materials, consumables, power and water were estimated from first principles.
Table 5: Black Pine Operating Cost Estimate
Operating Costs
LOM Unit Costs
US$ Million US$/tonne ore
Mining(1) $1,943 $6.49
Process Plant $538 $1.80
G&A $220 $0.73
Refining $22 $0.07
Total Operating Cost $2,724 $9.10
1. Assumes lease financing of mine equipment
Operating costs have an effective date of June 1, 2024, and are present ed with no added
contingency.
Sustainability
At Liberty Gold, sustainability is integral to our operations and decision-making, ensuring long-term
value for stakeholders. Since 2021, we have published annual sustainability reports, reinforcing our
commitment to transparency and accountability. At Black Pine, we engage regularly with
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stakeholders through updates, tours, and local events. We are deeply committed to preserving
biodiversity, supporting sage grouse habitat restoration and funding a four -year mule deer
migration study with Idaho Fish and Game. Sustainability initiatives included in the Black Pine PFS
include renewable energy supply through local utility , no net increase in water draw, habitat
mitigation, and waste rock backfill. We propose to explore mine fleet electrification and other key
sustainable initiatives during feasibility to minimize our carbon and project footprint.
Further Opportunities
Optimization of the Black Pine Project will be evaluated ahead of and during feasibility. Th is
includes:
• Potential to significantly increase the size and confidence of the reso urce at Black Pine.
Approximately 60% of the project area has not yet been drill-tested:
o The infill drilling and step- out drilling at Rangefront, M -Zone and Discovery, if
successful, could expand the mineral resource and conve rt inferred mineral
resource into the measured and indicated mineral resource categories.
o Evaluation of the historic heap to determine the nature and extent of residual gold
in the heap and its amenability to further processing.
o New discovery from a currently on-going drill exploration program on seven high-
priority targets across the project area.
o The resulting feasibility mine plan would likely change based on continued
exploration success and resource expansion.
• Mine planning and design focusing on cut-off grade optimization, stockpiling strategy, bulk-
m a t e r i a l m o v e m e n t o p ti o n s ( e . g . c o n v e y o r s ) f o r o r e t o t h e h e a p, haul road layout
optimization and the potential to expand leaching capacity to 24 million tonnes per year.
• Use of electric and potentially autonomous mining equipment in the open pits (shovels,
drills & haul trucks).
• Further define the options for renewable energy, such as solar, to supply site requirements,
particularly important for future electrification options.
Next Steps
• A Mine Plan of Operations is currently being drafted and is planned for submission to US
federal and cooperating agencies in the fourth quarter of 2024 to commence formal mine
permitting under the National Environmental Policy Act (“NEPA”).
• Advance all baseline studies required to support the mine permit applications.
• Technical work to further advance and de -risk the project towards feasibility level will
continue into 2025 and the Company intends to conduct a feasibility study to provide the
basis for a construction decision. Key areas of work include:
o Resource upgrade and growth,
o Evaluate historic heap potential as a future ore supply,
o Refine geo-metallurgical models and complete metallurgical testing required,
o Completion of additional studies on groundwater sources & quality, geotechnical
data collection and design for the heap, pit slopes and rock waste facilities, and
o Feasibility level rock geochemical characterisation for environmental studies.
• An NI 43-101 compliant technical report on the Black Pine PFS will be available on SEDAR
within 45 days of this release (the “T echnical Report”), including a ll qualifications,
assumptions and exclusions that relate to this PFS. The Technical Report is intended to be
read as a whole and sections should not be read or relied upon out of context.
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Black Pine Mineral Reserve Estimate
Mineral Reserves have been estimated for a conventional, multiple pit, open pit mining operation
utilizing surface waste rock storage facilities, pits backfill, extensive ore stockpiling and direct haul
to a single ROM heap leach facility. Pit slope angles were defined by geotechnical evaluation
supported by hydrological analysis.
Table 6: Black Pine Mineral Reserve Estimate
Reserve Class Million tonnes g/t Au (000) oz Au
Probable 299.4 0.32 3,110
Total 299.4 0.32 3,110
Notes:
• The Mineral Reserve estimate was prepared by AGP Mining Consultants Inc., Toronto, Canada (“AGP”) and has an
effective date of June 1, 2024. The Qualified Person responsible as defined under NI 43-101 for the Mineral Reserve
estimate is Todd Carstensen RM-SME, Principal Mine Engineer and independent of Liberty Gold.
• Mineral Reserves reported are consistent with the CIM Definition Standards for Mineral Resources and Mineral
Reserves (2014).
• Mineral Reserves are converted from Mineral Resources through the process of pit optimization, pit design, production
scheduling, stockpiling and cut-off grade optimization.
• Mineral Reserves are reported to a cut-off grade of 0.10 g/t gold and are based on a gold price of US$1,650/oz.
• Metallurgical recovery of gold is based on a variable gold leach recovery model derived from extensive metallurgical
studies. All mineralized carbonaceous materials have been treated as waste.
• Mine dilution was estimated based on a 1.0 m skin applied to ore to waste contacts.
• Units are metric tonnes, metric grams & troy ounces; “Au” = gold.
• The estimate of mineral reserves may be materially affected by geology, environment, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues.
Black Pine Mineral Resource Estimate
The Study has updated the Black Pine Mineral Resource estimate. Key changes relative to the
previous Mineral Resource estimate (see press release dated February 15, 2024) are:
• Updated metallurgical recovery model for gold,
• Change in resource cut-off grade,
• Increase in constraining pit shell value ($2,000/oz gold price), and
• Revision to low-grade (<0.2 g/t) block resource classification.
Table 7: Black Pine Mineral Resource Estimate
Resource Class Million tonnes g/t Au (000) oz Au
Indicated 402.6 0.32 4,163
Inferred 97.7 0.23 712
Notes:
• The Mineral Resource estimate was prepared by SLR Consulting (Canada) Ltd., Toronto, Canada (“SLR”) and has an
effective date of June 1, 2024. The Qualified Person responsible as defined under NI 43-101 for the Mineral Resource
is Valerie Wilson, M.Sc., P.Geo., Principal Resource Geologist, a fulltime employee of SLR and independent of Liberty
Gold.
• Mineral Resources reported are consistent with the CIM Definition Standards for Mineral Resources and Mineral
Reserves (2014).