Liberty Gold Reports Resource Upgrade Drill Results from the Main Zone - Hamburg Pit, Goldstrike Oxide Gold Deposit, Utah PGS 773: 0.81 g/t Au over 61.0 m, including 1.48 g/t Au over 15.2 m PGS 759: 0.61 g/t Au over 70.1 m
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News Release 21-19 October 20, 2021
Liberty Gold Reports Resource Upgrade Drill Results from the Main Zone -
Hamburg Pit, Goldstrike Oxide Gold Deposit, Utah
PGS 773: 0.81 g/t Au over 61.0 m, including 1.48 g/t Au over 15.2 m
PGS 759: 0.61 g/t Au over 70.1 m
VANCOUVER, B.C. – Liberty Gold Corp. (TSX: LGD; OTCQX: LGDTF) ("Liberty Gold" or the
"Company") is pleased to announce additional results from its 2021 Reverse Circulation (“RC”) drill
program at the Goldstrike Oxide Gold Project in southwestern Utah (“Goldstrike”).
A 15,000 metre (“m”) RC drill program at Goldstrike commenced June 2021, focused on resource
conversion from “Inferred” to “Measured and I ndicated” and testing areas where the deposit
remains open laterally and to depth. Drill results in this news release are from the Hamburg Pit area,
part of the Main Zone, which hosts greater than 65% of the resource. The drill results to date
continue to demonstrate the presence of continuous, well -mineralized corridors in the Main Zone
area, building confidence in the resource modeling.
Goldstrike is a past-producing, oxide, heap leach gold mine that contains a large, shallow, district –
scale, Carlin-style gold sy stem. It follows a 7 kilometre-long, north- dipping unconformity with
higher-grade gold intervals located along west -northwest-striking faults. In 2018, a Preliminary
Economic Assessment1 (“PEA”) was completed at Goldstrike which returned a Net Present Value
at a 5% discount rate (“NPV5%”)of US$129.5 million and an Internal Rate of Return (“IRR”) of 29.4%
at US$1,300/oz gold prices. A sensitivity analysis using US$1,700/oz gold returns an NPV5% of
US$291.7 million and an IRR of 52.4% representing strong economic returns at current gold prices.
Cal Everett, President and CEO of Liberty Gold stated, “The Goldstrike Project in southwest Utah,
coupled with Black Pine in southeastern Idaho, represent two high-quality, oxide gold development
assets in the Great Basin, USA. While our focus has been on Black Pine for the last two years, with
the rise in gold price and increased market recognition of Goldstrike, we have returned to the
project th is year to continue de- risking the asset towards a pre- feasibility study decision. The
objective of the 2021 drill program is to continue to push the pit constrained, 925,000 oz Indicated
Resource outwards and downwards with the goal to upgrade the 296,000 oz Inferred Resource.”
KEY POINTS: MAIN ZONE – HAMBURG PIT
• Main Zone drilling to date has focused on the historic Hamburg Pit area, including Inferred
Resource blocks located adjacent to and beneath the well -drilled Indicated portion of the
Mineral Resource.
1 Preliminary Economic Assessment entitled “Preliminary Economic Assessment and Independent Technical
Report for the Goldstrike Project, Washington County, Utah, USA” dated July 16, 2018.
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• 40% of the Main Zone is located on private patented lands, a favourable permitting
consideration.
• Approximately 75% of the Goldstrike resource is in the Indicated category.
• Drilling is encountering long intervals of oxide gold mineralization with excellent cyanide
solubility at shallow depths, increasing the confidence in historic drilling and supporting the
continuity of mineralization in corridors throughout the Main Zone.
• Liberty Gold will continue to de- risk th e Goldstrike Deposit through concurrent
engineering, drilling, updated metallurgy and procurement of process water in line with all
social license obligations and considerations.
• Total meterage drilled at Goldstrike to mid-October 2021 is 11,544 m in 80 holes, of which
2,546 m in 19 holes are reported herein.
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MAIN ZONE HIGHLIGHT TABLE*
*Please refer to the full table at the link below for complete results. Results are reported as drilled thicknesses, with true
thicknesses varying by hole orientation. True thicknesses are generally 60% to 90% of drilled thicknesses. Gold grades
are uncapped. Au (g/t) = grams per tonne of gold. “AuCN/AuFA” is the ratio of cyanide soluble gold (recovered using the
method described in the Quality Assurance – Quality Control section below) to gold by fire assay, expressed as per cent.
Hole ID (Az, Dip)
(degrees) From (m) To (m) Intercept
(m) Au (g/t) Au
Cut-Off
Hole
Length
(m)
Target AuCN/AuFA
(%)
PGS756 (240, -70) 44.2 62.5 18.3 1.07 0.2 95%
also incl 50.3 57.9 7.6 1.52 1.0 94%
and 80.8 86.9 6.1 0.75 0.2 100%
incl 82.3 83.8 1.5 1.17 1.0 100%
PGS757 (170, -70) 39.6 51.8 12.2 0.95 0.2 93%
incl 47.2 50.3 3.0 2.49 1 90%
and 61.0 68.6 7.6 0.54 96%
and 88.4 93.0 4.6 1.02 99%
incl 88.4 91.4 3.0 1.24 1 99%
PGS758 (020, -50) 74.7 141.7 67.1 0.62 0.2 83%
incl 77.7 80.8 3.0 1.76 87%
also incl 88.4 89.9 1.5 1.02 88%
also incl 121.9 123.4 1.5 2.31 93%
also incl 125.0 126.5 1.5 1.04 92%
PGS759 (355, -50) 70.1 140.2 70.1 0.61 0.2 86%
incl 94.5 100.6 6.1 1.74 1 86%
PGS760 (0, -90) 47.2 71.6 24.4 0.43 0.2 87%
incl 64.0 65.5 1.5 1.12 1 98%
PGS761 (290, -65) 48.8 80.8 32.0 0.38 0.15 80%
also incl 54.9 80.8 25.9 0.42 0.2 84%
and 89.9 103.6 13.7 0.88 0.15 60%
incl 89.9 100.6 10.7 1.08 0.2 59%
also incl 94.5 97.5 3.0 2.70 1 52%
and 109.7 126.5 16.8 0.38 0.15 85%
incl 109.7 123.4 13.7 0.42 0.2 91%
PGS770 (335, -50) 22.9 48.8 25.9 0.67 0.2 129.5 Hamburg 88%
PGS771 (5, -85) 0.0 33.5 33.5 0.28 0.15 71%
incl 1.5 32.0 30.5 0.29 0.2 74%
and 41.1 53.3 12.2 0.48 0.2 88%
incl 48.8 50.3 1.5 1.17 1 89%
PGS772 (280, -65) 0.0 33.5 33.5 0.32 0.2 66%
and 41.1 54.9 13.7 0.44 0.15 83%
incl 44.2 54.9 10.7 0.51 0.2 84%
also incl 50.3 53.3 3.0 1.14 1 86%
and 62.5 67.1 4.6 0.45 0.15 90%
incl 62.5 65.5 3.0 0.58 0.2 91%
PGS773 (25, -50) 32.0 94.5 62.5 0.79 0.15 58%
incl 32.0 93.0 61.0 0.81 0.2 59%
also incl 35.1 36.6 1.5 1.33 79%
also incl 39.6 54.9 15.2 1.48 38%
also incl 71.6 73.2 1.5 1.24 94%
PGS774 (345, -75) 35.1 82.3 47.2 0.45 0.15 99%
incl 38.1 73.2 35.1 0.48 99%
also incl 74.7 80.8 6.1 0.59 99%
121.9 East Hamburg
99.1 East Hamburg0.2
132.6 Hamburg
Hamburg144.8
129.5 Hamburg
0.2
178.3 Hamburg
141.7
166.1 Hamburg
1
Hamburg
144.8 Hamburg
105.2 East Hamburg
1
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For a map and cross sections of the Goldstrike Property, including drill collars and traces for the
current release, please click here:
https://libertygold.ca/images/news/2021/October/Goldstrike_NR10202021MapSection.pdf
For a complete table of drill results from all Liberty Gold drill holes at Goldstrike, please click
here: https://libertygold.ca/images/news/2021/October/GS_Intercepts10202021.pdf
ABOUT GOLDSTRIKE
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 Black Pine and Nevada Gold Mines Long Canyon deposit, Goldstrike
represents part of a growing number of Car lin-style gold systems located off the main Carlin and
Cortez trends in underexplored parts of the Great Basin.
Goldstrike is a past -producing, open-pit run of mine heap-leach operation that produced 209,000
ounces of gold and 197,000 oz of silver between 1988 and 1994 during a period of historically low
gold prices. Ore was mined from 12 shallow pits, at an average grade of 1.2 g/t Au and an average
recovery of approximately 75%. Liberty Gold carried out extensive compilation, drilling and
metallurgical work, releasing a resource estimate and PEA in 2018. The resource includes an
Indicated 925,000 oz of gold grading 0.50 g/t Au (57,846,000 tonnes) and an Inferred 296,000 oz
of gold grading 0.47 g/t Au (19,603,000 tonnes), backed by over 1 ,700 drill holes. The PEA mines
915,516 oz of gold at a life of mine all in sustaining costs of US$793/oz, returning a NPV at a 5%
discount rate of US$129.5 million and an IRR of 29.4% at US$1,300/oz gold prices. A sensitivity
analysis using US $1,700/oz go ld returns an NPV5% of US $291.7 million and an IRR of 52.4%
representing strong economic returns at current gold prices.
The 2021 drilling campaign is designed to convert areas of inferred resource to indicated resource
in support of a Prefeasibility Study decision and will also test for extensions to mineralization in
several areas.
A virtual site tour and 3D model of the Goldstrike property, including details about the geology and
mineralization, is available on the Company’s website: libertygold.ca
QUALITY ASSURANCE – QUALITY CONTROL
Drill composites were calculated using cut -offs of 0.15 g/t, 0.20 g/t and 1 .00 g/t gold. 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 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 0.200
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 Atomic Absorption Spectroscopy. QA/QC for all drill samples consists of the insertion and
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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 geochemi cal suite by ICP -MS. ALS Geochemistry -Reno is ISO 17025:2005
Accredited, with the Elko prep lab listed on the scope of accreditation.
QUALIFIED PERSON
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.
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 open-
pit scenarios. Our flagship projects are Black Pine in Idaho and Goldstrike in Utah, both 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, the
potential size of the mineralized zone, , drill results demonstrating the presence of continuous and well-mineralized corridors in the Main
Zone area and building confidence in the resource modeling, plans with respect to exploration and development plans of Goldstrike and
the timing thereof, the objectives of the drilling program, the potential upgrade of inferred mineral resources to measured and indicated
mineral resources and plans for any Prefeasibility Study decisions. Forward-looking information is often, but not always, identified by
the use of words such as "seek", "anticipate", "pl an", "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,
the impact from the pandemic of the novel coronavirus (COVID-19), availability of equipment, timing of the publication of any PEAs, 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 operat e as
anticipated; the failure of contracted parties to perform; the timing and s uccess of exploration activities generally; the timing of the
publication of any PEAs or pre-feasibilities; delays in permitting; possible claims against the Company; labour disputes and other risks of
the mining industry, including impacts from the pandem ic of the novel coronavirus (COVID -19); delays in obtaining governmental
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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, 2021 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 terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”, are Canadian
mining terms as defined in, and required to be disclosed in accordance with, Nationa l Instrument 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”), which references the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum
(the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves (“CIM Definition Standards”), adopted by the CIM
Council, as amended. However, these terms are not defined terms under SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United
States Securities Act of 1933, as amended, and normally are not p ermitted to be used in reports and registration statements filed with
United States Securities and Exchange Commission (the “ SEC”). The SEC has adopted amendments to its disclosure rules to modernize
the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the United States Securities
Exchange Act of 1934, as amended. These amendments became effective February 25, 2019 (the “ SEC Modernization Rules ”) with
compliance required for the first fiscal year beginn ing on or after January 1, 2021. The SEC Modernization Rules replace the historical
disclosure requirements for mining registrants that were included in SEC Industry Guide 7. The Company does not file reports with the
SEC and is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide
disclosure under NI 43-101 and the CIM Definition Standards.
United States investors are cautioned that there are differences in the definitions under the SEC Modernization Rules and the CIM
Definition Standards. There is no assurance any mineral resources that the Company may report as “measured mineral resources” ,
“indicated mineral resources” and “inferred mineral resources” under NI 43 - 101 would be the same had the Company prepared the
resource estimates under the standards adopted under the SEC Modernization Rules. United States investors are also cautioned that
while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”,
investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of
mineral resources or into mineral reserves. Mineralization described using these term s has a greater amount of uncertainty as to their
existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume
that any “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” that the Company reports are or
will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence
and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that
all or any part of the “inferred mineral resources” exist. In accordance with Canadian securities laws, estimates of “inferred mineral
resources” cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-
101. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be “sub stantially
similar” to the correspo nding CIM definitions. United States investors are cautioned that a preliminary economic assessment cannot
support an estimate of either “proven mineral reserves” or “probable mineral reserves” and that no feasibility studies have b een
completed on the Company’s mineral properties.
Accordingly, information contained herein describing the Company’s mineral deposits may not be comparable to similar informat ion
made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and
the rules and regulations thereunder.