Liberty Gold Announces Updated Resource Estimate for the Black Pine Oxide Gold Deposit, Idaho 2,61 3,000 Indicated and 483,000 Inferred Oxide Gold Ounces 52% Increase in Indicated and 31% Increase in Inferred Ounces
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News Release 23-02 February 7, 2023
Liberty Gold Announces Updated Resource Estimate for the Black
Pine Oxide Gold Deposit, Idaho
2,61 3,000 Indicated and 483,000 Inferred Oxide Gold Ounces
52% Increase in Indicated and 31% Increase in Inferred Ounces
VANCOUVER, B.C. – 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
updated Resource builds on the maiden resource released on July 13, 2021 1, and includes an
additional 528 Reverse Circulation (“RC”) and core holes (126,726 metres) drilled by Liberty Gold
between April 2021 and October 2022.
The MRE has an effective date of January 21, 2023, is reported using a constraining resource pit
at a cut-off grade (“COG”) of 0.20 grams per tonne (“g/t”) gold (“Au”) and consists of:
• An indicated resource of 2,613,000 ounces of oxide gold at an average grade of 0.52 g/t
Au and totalling 157,267,000 tonnes (“t”); and
• An inferred resource of 483,000 ounces of oxide gold at an average grade of 0.43 g/t Au
and totalling 35,150,000 t.
• A high-grade subset of the MRE within the 0.20 g/t Au resource pit using a COG of
0.50 g/t Au consists of:
o An indicated 1,548,000 ounces of gold at an average grade of 1.02 g/t Au and
totalling 47,391,000 t; and
o An inferred 219,000 ounces of gold at an average grade of 0.93 g/t Au and totalling
7,315,000 t.
In total, using the same COG as the previous resource estimate , the updated MRE represents a
52% increase in indicated ounces and a 31% increase in inferred ounces over the maiden resource
released just 18 months ago ( see press release dated July 13, 2021). Within the higher -grade
subset (0.50 g/t Au COG within the 0.20 g/t Au resource pit), 528,000 indicated ounces were
added relative to the 2021 maiden resource estimate, a 52% increase. The significant increase in
ounces can be attributed to:
1 Included in the Updated Technical Report and Resource Estimate for the Black Pine Gold Project, Cassia County, Idaho, USA dated
August 18, 2021 with an effective date of June 20, 2021.
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• The discovery ( see press release dated September 1, 2021 ) and subsequent intensive
drilling of 154 holes included in the resource in the Rangefront Zone beginning in July 2021
over a 15 month period.
• Expansion and/or amalgamation of several existing zones, including the CDF, E, and M
zones and discovery of the Bobcat Zone, a southern extension of the CDF Zone (see press
released dated December 13, 2022).
• Drill testing and drill definition of surficial waste rock storage and pit backfill.
• Definition drilling in previously-defined areas of inferred mineralization.
The MRE was completed by SLR Consulting (Canada) Ltd., Toronto, Canada (“SLR”). SLR is a highly
respected engineering company with extensive experience in resource estimation and audit of the
largest Carlin-style gold systems in the Great Basin.
Jason Attew, President and CEO of Liberty Gold stated, “This updated Mineral Resource Estimate
for our flagship Black Pine project represents a major milestone for Liberty Gold and a major
accomplishment for our exploration team, who spent the last year and a half with a singular focus on
expanding and upgrading the resource endowment at Black Pine . The team has delivered impressive
results. Compared to the July 202 1 resource estimate, t onnes are up significantly while grade has
improved using conservative input assumptions, positioning Black Pine in the rarified territory of an
oxide resource with more than 2.6 million indicated ounces and a further half a million ounces inferred.
Moreover, we are encouraged that Black Pine continues to expand in all directions with future resource
growth expected as drill results continue to impress.”
For maps and cross sections of the Black Pine Mineral Resource block model, please click
here: https://libertygold.ca/images/news/2023/February/BlackPine_ResourceUpdate.pdf
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TABLE 1: BLACK PINE UPDATED MINERAL RESOURCE ESTIMATE
Notes:
• CIM (2014) definitions were followed for Mineral Resources.
• Mineral Resources are estimated at a gold cut-off grade of 0.20 g/t.
• Mineral Resources are estimated using a long-term gold price of US$1,800 per ounce.
• Mineral Resources are estimated using a variable recovery derived from 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.
• Mineral Resources are reported within conceptual open pits.
• 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 January 21, 2023.
• The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
• See additional resource estimation notes below.
KEY POINTS
• The updated MRE captures historic shallow drilling and Liberty Gold drilling through mid-
October 2022 throughout the 14 square kilometer (“km2”) surface gold anomaly surrounding
the historic pits and in the Rangefront area, leaving large areas of the project still untested.
• A combination of historic drilling and Liberty Gold drilling comprised of 2,398 tightly spaced
drill holes and representing 362,423 m of drilling, allows for a high degree of confidence in
the integrity of the MRE, as illustrated by 84.4% of the MRE in the indicated category.
Zone Classification T onnes g/t Au oz Au % Indicated
% Inferred
% Total
Resource
Indicated 86,275,000 0.54 1,498,000 93
Inferred 8,283,000 0.40 107,000 7
Indicated 46,581,000 0.49 732,000 86
Inferred 7,913,000 0.46 118,000 14
Indicated 13,649,000 0.40 173,000 66
Inferred 7,260,000 0.39 90,000 34
Indicated 5,255,000 0.71 120,000 92
Inferred 762,000 0.45 11,000 8
Indicated 1,584,000 0.62 32,000 29
Inferred 3,783,000 0.63 77,000 71
Indicated 2,614,000 0.43 36,000 49
Inferred 3,529,000 0.32 37,000 51
Indicated 1,310,000 0.50 21,000 32
Inferred 3,619,000 0.38 44,000 68
Indicated 157,267,000 0.52 2,613,000 84 84
Inferred 35,150,000 0.43 483,000 16 16
4
4
2
2
Total Resource
J Zone
E Zone
Back Range Zone
M Zone
CDF Zone
Rangefront Zone
Discovery Zone 52
27
8
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• Within the 0.20 g/t Au resource pit shell, there is a subset of higher -grade mineralization
exceeding 1.5 million ounces of indicated material at a grade of over 1 g/t Au (0.50 g/t Au
cut-off grade).
• An analysis of geological potential at lower cut -off grades, down to the marginal cut-off
grade of 0.1 0 g/t Au , 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 other run -of-mine oxide heap -leach operations in the G reat Basin. These lower grade
ounces are estimated in the block model to a high degree of confidence and have supporting
metallurgical test work.
• Inferred portions of the MRE largely reflect areas of recent resource expansion drilling and
will continue to be upgraded through infill drilling.
• The updated MRE is supported by four phases of metallurgical column testing , completed
between 2019 and 2021. Three additional phases of metallurgical test work are currently in
progress for Black Pine . Results will be released when available from February through
December 2023.
• As of December 31, 2022, Liberty Gold has expended approximately US$48.7 million dollars
all-in on the project, including acquisition costs, or approximately US$16 per resource ounce
of gold.
“The updated MRE represents the next step in validating our hypothesis that the Black Pine gold system
may be the largest oxide gold system in the Great Basin not currently being mined,” stated Moira Smith,
Liberty Gold’s Corporate Technical Advisor. “Our initial concept of a gold system hosted along low-
angle, bedding-parallel faults over a wide area has withstood the test of time, and we were able to test
the concept in an area of shallow cover to the east of the main zone of mineralization, resulting in a
major discovery at Rangefront. With over 40 holes pending assay results post-resource at this time, we
are well on our way toward further resource growth. At this point, with data in hand from this resource
update, both within and outside of the current resource pit, we believe that geological potential across
our two Great Basin properties could extend to at least 7 million ounces.”
RESOURCE DISTRIBUTION ACROSS AND WITHIN THE BLACK PINE DEPOSIT
With reference to Table 1, above, the updated MRE reflects efforts to grow the deposit through:
• Testing of new targets: The Rangefront Zone, targeted by drilling starting in July 2021,
has added over 679,000 ounces of indicated and 93,000 ounces of inferred resource to
the Black Pine deposit relative to the 2021 resource estimate, and now contributes 27%
to the total Resource. It is located adjacent to flat terrain suitable for future infrastructure
development.
• Targeting of areas with pot ential to yield near -surface mineralization at higher than
average grades including t he M Zone and F Zone . The M Zone now hosts 120,000
indicated ounces at an average grade of 0.71 g/t Au.
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• Targeting of sparsely-drilled, smaller zones with multiple small resource pits in order to
amalgamate them into larger bodies of contiguous mineralization in fewer pits, including
the M Zone, portions of the CDF Zone and Back Range Zone.
• Step-out drilling along the margins of existing zones, including the CDF, E and Rangefront
zones.
• Drill testing of surficial mine disturbance, including waste rock storage and pit backfill, to
identify and drill off areas of above cut-off grade material.
• Drill testing of new areas including the newly-defined Bobcat Zone (reported as part of
the CDF Zone).
The Discovery Zone continues to host the largest contiguous body of gold mineralization at Black
Pine, with the Rangefront Zone now the second largest. The Rangefront Zone is open to the west,
north and east, with drilling continuing to expand its limits.
RESOURCE ESTIMATE ANALYSIS BY BLOCK GRADES
The 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, an indicated 1,548,000 ounces at an average
grade of 1.02 g/t Au remain. The distribution of the above 0.5 0 g/t Au COG blocks is shown in
the graphics provided at the link above.
TABLE 2: RESOURCE GRADE DISTRIBUTION AT SUCCESSIVELY HIGHER CUT -OFF GRADES
WITHIN THE 0.2 G/T AU REPORTING PIT*
*Please refer to the notes accompanying Table 1, above, for additional information.
The Black Pine updated MRE is shown in bold and italic font.
POTENTIAL UPSIDE
Potential upside was examined by evaluating the block model down to successively lower cut-off
grades with corresponding constraining resource pits, approaching the marginal COG.
Considerable upside remains for resource expansion at lower COG s, to be investigated in the
Indicated 157,267 0.52 2,613
Inferred 35,150 0.43 483
Indicated 118,475 0.61 2,334
Inferred 24,799 0.51 408
Indicated 93,679 0.70 2,117
Inferred 18,129 0.60 350
Indicated 47,391 1.02 1,548
Inferred 7,315 0.93 219
Au g/t Au Ounces
x 1000
0.20 g/t
0.25 g/t
0.30 g/t
0.50 g/t
Block cut-off
grade Classification Tonnes
x 1000
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course of carrying out future engineering studies.
TABLE 3: SENSITIVITY ANALYSIS USING LOWER CUT-OFF GRADES*
*Please refer to notes accompanying Table 1, above. The reporting MRE is shown in bold and italic
font. Tonnes, grade and ou nces 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.
In addition to the above, the block model contains a large number of unclassified blocks lying
outside of the limits of the 0.10 g/t Au pit shell. It is unknown if further drilling will result in
classification of these blocks as resource. However, the presence of gold mineralization beyond
the pit limits suggests the potential for future additions of gold to the current MRE.
Non-oxide gold mineralization, primarily in the form of carbonaceous material with very low
cyanide solubility, is present at the base of the deposit in several locations, as well as sporadically
elsewhere in the stratigraphic column. This material was assigned a zero recovery in the
conceptual pit model, such that it is excluded from the pits, and, if internal to the pits, is not
included in the MRE. Very high grades were encountered locally in this material. It is not known
whether some or all of this material is recoverable using other methods without further
metallurgical studies.
2023 WORK PROGRAM
Much of the gold system at Black Pine remains unexplored or incompletely tested, including areas
along the southeastern, eastern and northeastern edge of the deposit, as well as the gap between
the Back Range and E zones.
A recently submitted modification to the United States Forest Service (“USFS”) Plan of Operations,
as well as a recently received Bureau of Land Management Plan of Operations will allow access to
much of this area beginning in 2023.
The 2023 drill program commenced on January 7, 2023, in low elevation areas along the eastern
margin of the deposit. The budget includes 32,000 m of RC drilling targeting resource upgrade
Cut-off (g/t Au) Category T onnes g/t Au Ounces Au
Indicated 311,571,000 0.34 3,412,000
Inferred 97,244,000 0.27 850,000
Indicated 230,709,000 0.41 3,056,000
Inferred 66,042,000 0.33 702,000
Indicated 197,518,000 0.45 2,875,000
Inferred 50,260,000 0.37 599,000
Indicated 157,267,000 0.52 2,613,000
Inferred 35,150,000 0.43 483,000
0.10
0.15
0.17
0.20
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and expansion over several areas of the deposit, as well as reconnaissance drilling in new areas
along the eastern margin of the deposit.
In parallel with the drill program, development work is continuing, comprising:
• Phase 5 metallurgical column test work (55 columns)
• Submission of an additional modification to the USFS Plan of Operations
• Geotechnical and hydrological studies
• Waste rock geochemical studies
• Environmental baseline work.
ABOUT BLACK PINE
Black 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 depo sit, Black Pine represents 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 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 heap-leach process.
A virtual site tour and 3D model of Black Pine property, including details about the geology and
mineralization, will be available in due course on the Company’s website: libertygold.ca.
ESTIMATION METHODS
The resource estimate was completed by Ryan Rodney, C.P.G., Senior Resource Geologist, of SLR. Mr.
Rodney 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:
o Developing a geological model, in Leapfrog Geo reflecting low-angle fault control and stratigraphic
control of mineralization hosted in receptive carbonate host rocks;
o evaluating the drill data statistically;
o 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 Edge;
o compositing data to 3.048 metres (10 feet) within the gold domains;
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o coding a block model comprised of 10 x 10 x 5 (x, y, z) metre blocks and sub-blocked to 2.5 x 2.5
x 1.25 metre blocks to the domains;
o analyzing the modeled mineralization geostatistically to aid in the establishment of estimation
and classification parameters;
o interpolating gold grades using inverse distance cubed (ID3) and a three pass interpolation strategy
into the model blocks using the mineral domain coding to explicitly constrain the gold grade
estimations; and
o 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 US$1,800/ounce and pit slopes ranging from 45 to 47 degrees in eight sectors defined
by geotechnical studies. 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 drilling database for the project contains 1,854 historical RC holes and 23 diamond core holes,
as well as 768 RC and 30 core holes drilled by Liberty Gold. The historical holes at the Black Pine
Project were primarily drilled from the mid 1980s to the late 1990s by Noranda and Pegasus Gold.
• A technical report on the updated resource estimate will be prepared in accordance with NI 43-101
and filed within 45 days of this news release on Liberty Gold’s issuer profile on SEDAR
at www.sedar.com
The technical information contained in this news release has been reviewed and approved by Mr.
Ryan Rodney, C.P.G. of SLR , an Independent Qualified Person as defined by NI 43 -101. Mr.
Rodney has verified the data disclosed, including sampling, analytical, and test data underlying the
drill results, and he consents to the inclusion in this release of said data in the form and context in
which it appears. Mr. Rodney experienced no limitations with respect to data verification activities
related to the Black Pine project.
Moira Smith, Ph.D., P.Geo., Corporate Technical Advisor to L iberty Gold, is the Company's
designated Qualified Person for this news release within the meaning of NI 43- 101 and has
reviewed and validated that the information contained in the release is accurate.
ABOUT LIBERTY GOLD
Liberty 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