Liberty Gold Reports Weighted Average 84.2% Extraction in Phase 2 Column Testing at Goldstrike Project, Great Basin, USA High and Rapid Recoveries Insensitive to Crush Size Continue to Support Simple Heap Leach Process
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NEWS RELEASE 19-06 May 28, 2019
Liberty Gold Reports Weighted Average 84.2% Extraction in Phase 2 Column Testing at
Goldstrike Project, Great Basin, USA
High and Rapid Recoveries Insensitive to Crush Size Continue to Support Simple Heap
Leach Process
VANCOUVER, B.C. – Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased
to report results from Phase 2 metallurgical testing on oxide material from its Goldstrike Project, in
southwestern Utah, providing additional support for a simple heap leach mining scenario. Gold
extractions from 29 column tests were rapid, and >80% of the leachable gold was extracted
within 10 days, with final column leach gold extractions ranging up to 95%.
Metallurgical testwork included fine and coarse bottle rolls and 12.5 millimeters (“mm”) (0.5 inch)
and 25 mm (1 inch) column tests. In total, 58 bottle rolls (twenty-nine 200 mesh and twenty-nine 10
mesh) and 29 column tests were carried out on 29 composites from the Dip Slope Zone
immediately north of the Main Zone (subject to Phase 1 testing) and the Western Zone.
Metallurgical testing now extends to all areas within the footprint of the Resource Estimate and
Preliminary Economic Assessment (“PEA”).
Results and conclusions are consistent with those generated from Phase 1 metallurgical testing
(see press release dated April 3, 2017), which were used to underpin recovery assumptions and
run-of-mine (“ROM”) flow sheet for the PEA (see press release dated July 10, 2018). The Phase 2
metallurgical testing brings the total number of oxide column tests for the property to 49. A
slight drop in overall extraction for Phase 2 results (84.2%) relative to Phase 1 results
(85.9%) can be attributed to an average grade of 0.669 grams per tonne gold (“g/t Au”) for
the 2019 composites, compared to 1.196 g/t Au for the 2017 composites. This difference is
the result of a deliberate attempt to match the composite grades to the average grades of the
geographical areas tested, in order to be able to more closely predict expected mine recoveries in
these areas.
Highlights include:
• 29 Column leach tests produced a weighted average 84.2% gold extraction (See
below for a table of results or link:
https://libertygold.ca/images/news/2019/may/Gold_Extraction_Data.pdf)
• Gold extraction was rapid, with >80% of the leachable gold extracted within the first
10 days of column leaching. Columns were deactivated after 50 days instead of the
usual 90 day leach cycle because leaching was essentially complete. (See below for a
graph of extraction curves or link:
https://libertygold.ca/images/news/2019/may/Cumulative_Leach_Curves.pdf).
• Twenty-nine coarse bottle roll tests (target 80% passing 10 mesh or 1.7mm particle
size) produced a weighted average 84.4% gold extraction.
• Twenty-nine fine bottle roll tests (target 80% passing 200 mesh or 75 micron particle
size) produced a weighted average 89.7% gold extraction.
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• Gold extraction is relatively insensitive to particle size, except for five composites
from the Beavertail area. All other composites can be projected to coarse particle
sizes without significant loss of gold extraction.
• Weighted average modeled extraction for the 29 column tests at a 200mm particle
size (8 inches, meant to simulate ROM conditions) is 81.3%.
*Weighted average gold extraction is obtained using the following equation: (composite head grade (g/t) x extraction
(%) for all head grades)/sum of all head grades. Using arithmetic averages tends to over-represent low grade
composites and under-represent high grade composites. The arithmetic average of the 29 coarse bottle rolls is
81.0%. The arithmetic average of the 29 column tests is 81.5%.
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Cumulative Leach Curves, Phase 2 Metallurgical Testing
“We are extremely pleased with the Phase 2 metallurgical results,” says Cal Everett, Liberty Gold
President & CEO. “The results are exceptional and continue to support our belief that a high
percentage of the gold can be rapidly recovered in a simple, low cost, heap leach operation.
Consistent results have now been confirmed along the initial 7 kilometers of strike of the Goldstrike
oxide gold system.”
The work was supervised by independent consulting metallurgist Gary Simmons, formerly the
Director of Metallurgy and Technology for Newmont Mining Corp. Mr. Simmons has managed or
supervised a significant number of metallurgical testing programs on similar deposits throughout
the Great Basin. According to Mr. Simmons, “Data from metallurgical testing to date at Goldstrike
point to rapid leaching and relatively high gold recoveries and suggest that a combination ROM
and coarse crush/agglomeration heap leaching may be the preferred process option at Goldstrike.”
Metallurgical Program
Samples for this study were collected from 13 large diameter (PQ) diamond drill holes from the
Western Zone of the Goldstrike Deposit as well as two areas near the Main Zone, intended to
expand the scope of testing initiated with Phase 1, which focused entirely on the Main Zone.
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For a map showing locations of drill holes used for metallurgical testing, please click here:
http://libertygold.ca/images/news/2019/may/Goldstrike_metPRmap.pdf.
13 large diameter diamond drill holes were drilled in 2018 to sample a range of locations and
material types in the Main and Western Zones at Goldstrike. From these, 29 composites were
created for metallurgical testing, with gold grades ranging from 0.214 to 2.048 g/t Au. All
composites were dominantly oxide, with cyanide soluble gold content of >80%.
Composites were sent to Kappes, Cassiday and Associates in Reno, Nevada for metallurgical
testing, comprising bottle rolls, column testing and metallurgical characterization including; gold
and silver assays, cyanide solubility, sulphur and carbon speciation, preg-robb analysis, ICP
geochemical assays and whole rock analysis.
Column composites were leached in either 100 mm (4 inch) or 150 mm (6 inch) diameter columns
at low strength, 0.50 grams per litre of sodium cyanide (“NaCN”) solution. Five of the columns
sampleswere agglomerated with 2.0 kg/t of cement due to elevated clay content.
Samples for bottle roll testing were crushed/pulverized to 80% passing 200 mesh (75 microns) and
80% passing 10 mesh (1.7 mm) particle size. The samples were rolled/agitated in bottles in a 1.0
g/l dilute cyanide solution for 72 hours (for 200 mesh) or 144 hours (for 10 mesh).
Organic carbon values are low. Results to date suggest that organic carbon will not be an issue in
recovery.
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 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.
A virtual site tour and 3D model of Goldstrike is available on the homepage of the Company’s
website: www.libertygold.ca.
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 Proje cts ("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 mineralize d 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, N evada 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 add itional 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 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.
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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 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 o f
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 upg rade of inferred mineral
resources to measured and indicated mineral resources, the potential for silver resourc es 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", "anti cipate", "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 sta tements are made including,
among others, assumptions about future prices of gold, and other metal prices, currency exchange rates and interest rates, fa vourable operating
conditions, political stability, obtaining governmental approvals and financing on t ime, obtaining renewals for existing licen ses and permits and
obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resource s,
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 th e 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 pa rameters as plans
continue to be refined; current economic conditions; future pr ices 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 contra cted parties to perform;
the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other ris ks
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 2 7, 2019 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 Min eral Resources."
While these terms are defined in and required by Canadian regulations (under NI 43 -101), these terms are not recog nized by the U.S. Securities
and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and g reat 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 categori es 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 diffe r 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 .