Goldstrike Reports Reverse Circulation Drill Testing Results
VANCOUVER – Liberty Gold Corp. reported the results from initial reverse circulation (RC) drill testing of the historic heap leach pads and one area of historic mine waste backfill at the Goldstrike Project located in the eastern Great Basin, immediately adjacent to the Utah/ Nevada border. It is the flagship of its three principal gold projects located in the prolific Great Basin that stretches across Nevada and into Idaho and Utah.
Results confirm that the historical leach pads, the back fill below the pad linings and bedrock to depth contain areas of gold mineralization above the cut-off grade used in the Goldstrike Preliminary Econo-mic Assessment (PEA).
Liberty Gold released a PEA for Goldstrike, confirming a low capital intensity, low operating cost, open-pit, run-of-mine, heap-leach operation, with a 7.5 year mine life and highly attractive economics.
To aid in further advancement and de-risking of the Goldstrike Property, drill testing of the historic heap leach pads, stockpiles, waste dumps and pit backfill is underway. Most of the areas currently being tested lie within the PEA pit and are classified as waste in the model. Conversion of any of these areas to mineralized leach material would potentially add low-cost ounces to the resource, consisting of gold in material previously drilled, blasted and placed on surface.
The results to date support Liberty Gold’s thesis that considerable gold remains in surficial deposits created during the historic mining operation, which operated during a period of very low gold prices and much higher ore-to-waste cut-off grades. Heap leach technology has advanced considerably in the last 20 years, with recovery of gold possible from previously-leached material; The heap leach pads are underlain by considerable thicknesses of mineralized backfill material; Drill holes encountered areas of unmined mineralization in the pit floors and walls under backfilled areas; Cyanide solubility tests carried out in conjunction with fire assaying of the drill samples from the heap leaches show moderate cyanide solubility. Additional testing will be carried out to determine potential recovery and the best methods to achieve it; Cyanide solubility of backfill material averages 86%; Additional drilling in these areas is warranted, as well as testing of other areas designated as historic stockpiles, waste dumps and pit backfill; Drone lidar surveying is being utilized to accurately estimate the volume of material stacked on the heap leach pads, currently estimated at approximately 8 million tons; and Results will be included in the next resource estimate.
An RC drill program is currently underway with two drills, with over 16,000 metres drilled to date. In addition to testing of the historic heap-leach, stockpile and waste dump areas, infill and step out drilling around the existing resource and testing of new targets property-wide is also underway. An amendment to the current Plan of Opera-tions to grant access to an additional >878 acres in and adjacent to the resource area is expected in in the final quarter of 2018.
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. 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 and an average recovery of approximately 75%.
The company’s address is Suite 1900, 1055 West Hastings St., Vancouver, BC V6E 2E9, (604) 632- 4677.