Liberty GOLD Reports Q3 2017 Financial and Operating Results
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NEWS RELEASE 17-21 November 10, 2017
LIBERTY GOLD REPORTS Q3 2017 FINANCIAL AND OPERATING RESULTS
VANCOUVER, B.C. – Liberty Gold Corp. (LGD - TSX) ("Liberty Gold" or the "Company"), formerly Pilot Gold
Inc., is pleased to announce its financial and operating results for the nine months ended September 30, 2017.
All amounts are presented in United States dollars unless otherwise stated.
Highlights through and subsequent to September 30, 2017:
Goldstrike1
Throughout the Historic Mine Trend, the exploration program is focused on building continuity between a
number of target areas and linking them together over large areas into continuous zones of mineralization,
namely the Main, Dip Slope, Peg Leg and Western zones. The Mineral Mountain target in the northwest part
of the Property was also tested. Highlights include:
o Mineral Mountain:
– 2.03 grams per tonne gold (g/t Au) over 6.1 metres (m) and 0.74 g/t Au over 13.7 m in PGS275
– 0.94 g/t Au over 15.2 m and 0.83 g/t Au over 6.1 m in PGS282
– 1.01 g/t Au over 12.2 m and 0.75 g/t Au over 9.1 m and 0.31 g/t Au over 9.1 m in PGS286
– 1.02 g/t Au over 13.7 m and 0.74 g/t Au over 10.7 m in PGS253
– 3.48 g/t Au over 4.6 m within 1.16 g/t Au over 25.9 m in PGS255
– 3.14 g/t Au over 32.0 m within 1.78 g/t Au over 67.1 m in PGS277
o Dip Slope Zone:
– 1.93 g/t Au over 10.7 m within 0.67 g/t Au over 53.3 m in PGS335
– 1.89 g/t Au over 13.7 m within 1.22 g/t Au over 32.0 m in PGS362
– 2.03 g/t Au over 3.0 m within 0.65 g/t Au over 38.1 m in PGS365
o Main Zone:
– 0.64 g/t Au over 15.2 m and 1.96 g/t Au over 9.1 m within 1.11 g/t over 19.8 m in PGS290
– 2.22 g/t Au over 15.2 m within 1.05 g/t Au over 48.8 m in PGS306
– 0.83 g/t Au over 21.3 m in PGS318
o Peg Leg Zone:
– 0.64 g/t Au over 33.5 m and 0.77 g/t Au over 4.6 m and 0.96 g/t Au over 1.5 m in PGS338
– 0.56 g/t Au over 7.6 m and 1.71 g/t Au over 3.0 m within 0.77 g/t Au over 22.9 m in PGS356
– 2.32 g/t Au over 3.0 m within 0.82 g/t Au over 13.7 m in PGS363
o Western Zone:
– 1.66 g/t Au over 9.1 m within 0.92 g/t Au over 19.8 m in PGS364
– 1.72 g/t Au over 7.6 m within 0.70 g/t Au over 42.7 m in PGS324
– 1.97 g/t Au over 6.1 m within 0.65 g/t Au over 36.6 m in PGS291
– 2.09 g/t Au over 6.1 m within 0.69 g/t Au over 30.5 m 1.79 g/t Au over 10.7 m within 0.74 g/t Au over
41.1 m in PGS281
Goldstrike, Utah
The 2017 RC drilling program began on February 1, 2017 and will continue through early December 2017, for
a total of approximately 50,000 m of drilling. Areas of focus include the Main Zone, Peg Leg , Dip Slope and
Western zones. There are 7 historical mined pits within the initial Main Zone 4 km2 area.
For the nine months ended September 30, 2017, expenditures, including non -cash items, at Goldstrike were
$4.89 million, including: drilling and assaying ($2.97 million), salaries ($0.79 million), and analyses and surveys
($0.44 million).
The receipt of the Plan of Operations in June 2017, has allowed the Company to expand drilling to test high -
priority targets across the 74.5 km 2 property, including the Padre Pit area in the northeastern part of the
1 See press releases of July 31, 2017, August 21, 2017, August 30, 2017, September 13, 2017 and October 16, 2017
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Historic Mine Trend and targets to the west and south of the Main Zone.
The Company plans to restart drilling in February 2018 . The Company also expects to report a first -time
mineral resource estimate at Goldstrike in a revised technical report in Q1 2018, after which, the Company
intends to advance the property through to a Preliminary Economic Assessment decision.
Moira Smith, Ph.D., P.Geo., Vice President Exploration and Geosciences, 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 scientific and technical informat ion contained in
this release is accurate.
Goldstrike is an early stage exploration project ; the potential quantities and grades disclosed herein are conceptual in
nature and, there has been insufficient exploration to define a mineral resource for other targets disclosed herein. It is
uncertain if further exploration will result in these targets being delineated as a mineral resource. The potential to define a
resource at Goldstrike is conceptual in nature and there has been insufficient exploration to d efine a mineral resource
thereat.
SELECTED FINANCIAL DATA
The following selected financial data is derived from our condensed interim consolidated financial statements
and related notes thereto (the “Interim Financial Statements”) for the nine months ended September 30, 2017,
as prepared in accordance with International Financial Reporting Standards. A copy of the Interim Financial
Statements can be found on the Company’s website (www.Libertygold.ca) or on SEDAR at www.sedar.com.
Beginning January 1, 2017, in order to enhance the relevance to the decision making needs of users, and to
improve comparability with our peers, the Company has voluntarily changed its accounting policy with respect
to exploration properties and deferred exploration expenditures . In prior periods, the Company’s policy was to
defer exploration expenditures unti l such time as the properties are put into commercial production, sold or
become impaired. Effective with the presentation of the March 31, 2017 Interim Financial Statements , on a
retrospective basis , the Company elected to change this accounting p olicy to expense exploration
expenditures as incurred . The Company will continue to defer acquisition expenditures on mineral properties
until such time as the properties are put into commercial production, sold or become impaired.
The information in the tables below is presented in $000s except per share data:
Three months ended
September 30,
Nine months ended
September 30,
2017 2016 2017 2016
Attributable to shareholders:
Loss for the period $3,585 $1,955 $9,357 $7,215
Loss and comprehensive loss for the period $3,358 $1,923 $8,705 $6,308
Basic and diluted loss per share $0.02 $0.02 $0.06 $0.06
Losses attributable to shareholders for the three and nine months ended September 30, 2017 of $3.59 million
and $9.34 million, respectively, were higher than the $ 2.09 million and $7.63 million incurred in the respective
As at
September 30,
As at
December 31,
As at
December 31,
2017 2016 2015
Cash and short-term investments $5,153 $12,469 $7,912
Working capital $4,476 $12,399 $8,215
Total assets $32,922 $40,881 $36,395
Current liabilities $974 $897 $477
Non-current liabilities $498 $585 $130
Shareholders’ equity $21,528 $29,490 $25,768
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comparative periods, due mostly to additional exploration and evaluation , investor relations, promotion and
advertising expenditures, offset by reductions in professional fees and office and general costs.
The largest contributions to loss in the three and nine months ended September 30, 2017, are exploration and
evaluation expend itures, wages and benefits, office and general , and investor relations, promotions and
advertising costs, which combined comprise $ 3.39 million and $8.57 million respectively of the overall loss es;
these same four categories are the largest contributors to the loss in the three and nine months ended
September 30, 2016 (combined: $ 2.24 million and $ 7.03 million respectively). Net cash opera ting outflows
were higher than the comparative period at $7.85 million in the nine months ended September 30, 2017, (nine
months ended September 30 2016: $ 6.89 million) mainly due to higher exploration and evaluation
expenditures in the current period.
The net other comprehensive income attributable to shareholders for the three and nine months ended
September 30, 2017, were $0.23 million and $0.65 million respectively compared to $0.03 million and $0.91
million respectively in the same periods in 2016, driven primarily by higher exchange gains on the translation of
foreign currency subsidiaries in 2017. The impact from exchange differences will vary from period to period
depending on the rate of exchange; in the period between January 1, 2017 and Septemb er 30, 2017, the
United States dollar appreciated 7.7% relative to the Canadian dollar (nine months ended September 30, 2016:
5.5%). The increase from exchange gains was offset by net fair value losses recognized on AFS investments.
Total assets comprise primarily exploration and evaluation assets of $23.98 million and cash, cash equivalents
and short term investments of $5.15 million. The 40% share of capitalised acquisition costs of TV Tower owned
by Teck Resources Ltd. is included as a component of the $ 9.92 million non -controlling interest on the
Company’s statement of financial position. Total assets also include $0.30 million in receivables, and
prepayments, and $1.45 million in value recorded for the Company’s 40% interest in the PEA -stage Halilaga
copper-gold project in Turkey.
Total liabilities at September 30, 2017, December 31, 2016 and 2015 primarily reflect accounts payable and
accruals recorded at period end arising from ongoing activities . The September 30, 2017 and December 31,
2016 balances also include deferred tax liabilities of $0.40 million and $0.50 million respectively (2015: $nil
million) arising from the impact of foreign exchange differences on the carrying value of TV Tower.
ABOUT LIBERTY GOLD
Liberty Gold is led by a proven technical and capital markets team that continues to discover and define high -
quality assets. Our core projects are Goldstrike in Utah, Black Pine in Idaho and Kinsley Mountain in Nevada.
The management group at Liberty Gold is responsible for discovering, developing and/or building two of the
latest seven heap leach gold deposits in the world that are now operating mines, including Long Canyon in
Nevada and Karma in Burkina Faso.
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, potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of
exploration and development plans , the release of an initial resource report at Golds trike and the release of a Preliminary Economic Assessment on
Goldstrike. 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 desc ribes a "goal", or vari ation of such
words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be ta ken, occur or be achieved.
Forward-looking information is not a guarantee of future performance and is based upon a n umber of estimates and assumptions of management at the
date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency
exchange rates and interest rates, favourable operating c onditions, political stability, obtaining governmental approvals and financing on time ; obtaining
renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market and geo-political conditions,
availability of equipment, accuracy of any mineral resources, the amenability of mineralization to produce a grade or quality o f concentrate sufficient to
be economic (as there can be no assurances as to the results of the metallurgical testing and no inferences should be drawn therefrom), the accuracy of
any metallurgical testing completed to date, successful resolution of disputes and anticipated costs and expenditures. Many a ssumptions 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.
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Such forward-looking information involves known and unknown risks and uncertainties, which may cause the actual results to be materially different from
any future results expressed or implie d by such forward -looking information, including, the timely receipt of regulatory approvals; risks related to the
interpretation of results and/or the reliance on technical information provided by our joint venture partner or other third p arties as relate d to the
Company’s mineral property interests; changes in project parameters as plans continue to be refined; current economic conditi ons; 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 gen erally; delays in permitting;
possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; the uncertainty of negotiating
with foreign governments, expropriation or nationalization of property without fair compensation, adverse determination or ru lings by governmental
authorities delays in obtaining governmental approvals, government regulation of exploration and mining operations, and the appli cation thereof in
accordance with the rule of law, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the
Company dated March 28, 2017 in the section entitled "Risk Factors", under the Company’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 f rom 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.