Announcement • Feb 08
Liberty Gold Corp. Announces Updated Resource Estimate for the Black Pine Oxide Gold Deposit, Idaho
Liberty Gold Corp. announced 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, 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 totaling 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 totaling 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: An indicated 1,548,000 ounces of gold at an average grade of 1.02 g/t Au and totaling 47,391,000 t; and An inferred 219,000 ounces of gold at an average grade of 0.93 g/t Au and totaling 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. 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: The discovery 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. 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 Carlin-style gold systems in the Great Basin. RESOURCE DISTRIBUTION ACROSS AND WITHIN THE BLACK PINE DEPOSIT: 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 potential to yield near-surface mineralization at higher than average grades including the M Zone and F Zone. The M Zone now hosts 120,000 indicated ounces at an average grade of 0.71 g/t Au. 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 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. 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 0.50 g/t Au COG blocks is shown in the graphics provided at the link above. 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 COGs, to be investigated in the course of carrying out future engineering studies. 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 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.