Liberty Gold Reports Q1 2024 Financial and Operating Results

Liberty Gold Corp.
Liberty Gold Corp.
Liberty Gold Corp.
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VANCOUVER, British Columbia, May 13, 2024 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) ("Liberty Gold" or the “Company”), is pleased to announce its financial and operating results for the three months ended March 31, 2024. All amounts are presented in United States dollars unless otherwise stated.

FIRST QUARTER OF 2024 AND RECENT HIGHLIGHTS

  • On April 29, 2024, we announced a non-brokered private placement for C$9.5 million, and on April 30, 2024, announced that the private placement was upsized to C$12.5 million1 (the “Private Placement”). The Private Placement will consist of the issuance of up to 35,715,362 units of the Company (the “Units”) at an issue price of C$0.35 per Unit. Each Unit will consist of one common share of Liberty Gold (each, a “Common Share”) and 1/2 of a Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one common share of Liberty Gold at a price of C$0.45 for a period of 24 months following completion of the Offering.

  • On April 17, 2024, we announced the signing of a definitive agreement to sell the TV Tower Project in Türkiye (“TV Tower”), for $11.5 Million on a 100% Basis. The Corporation’s 72.1% share of the $11.5 million in gross proceeds ($8.3 million) will be paid in three stages as follows2:

    • $3.6 million on the closing date.

    • $2.2 million on the first anniversary of the closing date.

    • $2.5 million on the second anniversary of the closing date.

At the Black Pine project (“Black Pine”),

  • On February 15, 2024, we announced an update to the independent mineral resource that was originally published on February 7, 20233, (the “Updated Resource”). The new Updated Resource4 is reported using a $1,800/ounce constraining resource pit at a cut-off grade (“COG”) of 0.20 grams per tonne gold (“g/t Au”) and consists of:

    • An indicated resource of 3,206,000 ounces (“oz”) of oxide gold at an average grade of 0.49 g/t Au and totalling 203.8 million tonnes (“Mt”); and

    • An inferred resource of 325,000 oz of oxide gold at an average grade of 0.42 g/t Au and totalling 24.1 Mt.

      A high-grade subset of the Updated Resource contained within the 0.2 g/t Au resource pit, applying a COG of 0.5 g/t Au and consists of:

    • Indicated resources of 1,765,000 oz Au at an average grade of 1.01 g/t Au and totalling 54.2 Mt; and

    • Inferred resources of 143,000 oz Au at an average grade of 0.91 g/t Au and totalling 4.9 Mt.

  • On March 14, 2024, we reported Phase 4 metallurgical column leaching results5:

    • 36 variability composites from the Phase 4B and 4C test programs were selected from large-diameter (“PQ”) drill core from Discovery Zone, F Zone, Tallman, M Zone, and C/D Zone, representing a range of sample types across lithology and gold (“Au”) grade.

    • Key results include:

      • 84.2% weighted average gold extraction6 from column leach tests for the 31 oxide composites.

      • Gold extractions ranged from 52.7% to 94.2% for the oxide composites.

      • >80% of leachable gold extracted within 10 days.

  • Reported core drill results from our 2023 core drill program:

    • Back Range - Drill holes LBP956C and LBP968C were the second and third best holes drilled to date at the Back Range Zone on a grams per tonne (“g/t”) x meter (“m”) basis and intersected strong grades of oxide gold mineralization, with the cyanide soluble assays showing an average of 74% and 87% recovery respectively. These drill results come from a highly deformed, strongly decalcified package of structurally thickened middle plate siltstones. Drill hole LBP969C was drilled for metallurgical testing purposes and hit as-expected results7.

    • J Zone – The first ever core hole drilled in J Zone, LBP1010C, was planned to add metallurgical data for this area and hit a thicker intercept than expected at 0.63 g/t Au over 46.3 m beginning at 6.2 m depth. Initial cyanide solubility data indicate this hole is oxide with recoveries similar to other areas already tested at Black Pine. J Zone is a sparsely drilled resource area that has significant growth potential to the north, east and west8.

    • Tallman – One vertical hole was drilled in this large, near surface resource area to confirm other nearby metallurgical results and hit better than expected grades and widths of 0.51 g/t Au over 58.4 m and 0.85 g/t Au over 22.7 m including 1.83 g/t Au over 5.1 m. Overall this zone represents a near surface, 81.1 m thick interval with cyanide solubility data indicating this zone will also have high recoveries similar to other areas at Black Pine8.

    • F Zone – F Zone is a higher grade, near surface zone of mineralization extending 700 meters south from the main Discovery Zone toward the CD Pit area. The core hole drilled here returned 0.74 g/t Au over 40.3 m starting from surface, which is a slightly better intercept than a nearby Reverse Circulation hole (LBP660). Additional drilling in 2024 will be targeting infill and extensions to this zone8.

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