2,613,000 Indicated and 483,000 Inferred Oxide Gold Ounces
52% Increase in Indicated and 31% Increase in Inferred Ounces
The MRE has an effective date of
- An indicated resource of 2,613,000 ounces of oxide gold at an average grade of 0.52 g/t Au and totalling 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 totalling 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 totalling 47,391,000 t; and
- An inferred 219,000 ounces of gold at an average grade of 0.93 g/t Au and totalling 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 (see press release dated
- The discovery (see press release dated
September 1, 2021 ) and subsequent intensive drilling of 154 holes included in the resource in theRangefront Zone beginning inJuly 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 theCDF Zone (see press released datedDecember 13, 2022 ). - 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
For maps and cross sections of the Black Pine Mineral Resource block model, please click here: https://libertygold.ca/images/news/2023/February/BlackPine_ResourceUpdate.pdf
TABLE 1: BLACK PINE UPDATED MINERAL RESOURCE ESTIMATE
Zone | Classification | Tonnes | g/t Au | oz Au | % Indicated % Inferred | % Total Resource |
Indicated | 86,275,000 | 0.54 | 1,498,000 | 93 | 52 | |
Inferred | 8,283,000 | 0.40 | 107,000 | 7 | ||
Indicated | 46,581,000 | 0.49 | 732,000 | 86 | 27 | |
Inferred | 7,913,000 | 0.46 | 118,000 | 14 | ||
Indicated | 13,649,000 | 0.40 | 173,000 | 66 | 8 | |
Inferred | 7,260,000 | 0.39 | 90,000 | 34 | ||
Indicated | 5,255,000 | 0.71 | 120,000 | 92 | 4 | |
Inferred | 762,000 | 0.45 | 11,000 | 8 | ||
Indicated | 1,584,000 | 0.62 | 32,000 | 29 | 4 | |
Inferred | 3,783,000 | 0.63 | 77,000 | 71 | ||
Indicated | 2,614,000 | 0.43 | 36,000 | 49 | 2 | |
Inferred | 3,529,000 | 0.32 | 37,000 | 51 | ||
Indicated | 1,310,000 | 0.50 | 21,000 | 32 | 2 | |
Inferred | 3,619,000 | 0.38 | 44,000 | 68 | ||
Total Resource | Indicated | 157,267,000 | 0.52 | 2,613,000 | 84 | 84 |
Inferred | 35,150,000 | 0.43 | 483,000 | 16 | 16 | |
Notes:
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- The updated MRE captures historic shallow drilling and
Liberty Gold drilling throughmid-October 2022 throughout the 14 square kilometer (“km2”) surface gold anomaly surrounding the historic pits and in the Rangefront area, leaving large areas of the project still untested.
- A combination of historic drilling and
Liberty Gold drilling comprised of 2,398 tightly spaced drill holes and representing 362,423 m of drilling, allows for a high degree of confidence in the integrity of the MRE, as illustrated by 84.4% of the MRE in the indicated category. - Within the 0.20 g/t Au resource pit shell, there is a subset of higher-grade mineralization exceeding 1.5 million ounces of indicated material at a grade of over 1 g/t Au (0.50 g/t Au cut-off grade).
- An analysis of geological potential at lower cut-off grades, down to the marginal cut-off grade of 0.10 g/t Au, suggests that significant upside potential exists for recovery of additional ounces in a future mine at Black Pine by applying operational cut-off grades similar to other run-of-mine oxide heap-leach operations in the
Great Basin . These lower grade ounces are estimated in the block model to a high degree of confidence and have supporting metallurgical test work. - Inferred portions of the MRE largely reflect areas of recent resource expansion drilling and will continue to be upgraded through infill drilling.
- The updated MRE is supported by four phases of metallurgical column testing, completed between 2019 and 2021. Three additional phases of metallurgical test work are currently in progress for Black Pine. Results will be released when available from February through
December 2023 . - As of
December 31, 2022 ,Liberty Gold has expended approximatelyUS$48.7 million dollars all-in on the project, including acquisition costs, or approximatelyUS$16 per resource ounce of gold.
“The updated MRE represents the next step in validating our hypothesis that the Black Pine gold system may be the largest oxide gold system in the
RESOURCE DISTRIBUTION ACROSS AND WITHIN THE BLACK PINE DEPOSIT
With reference to Table 1, above, the updated MRE reflects efforts to grow the deposit through:
- Testing of new targets:
The Rangefront Zone , targeted by drilling starting inJuly 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 andF 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 theCDF Zone andBack 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 theCDF Zone ).
RESOURCE ESTIMATE ANALYSIS BY
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 (Table 2). 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.
TABLE 2: RESOURCE GRADE DISTRIBUTION AT SUCCESSIVELY HIGHER CUT-OFF GRADES WITHIN THE 0.2 G/T AU REPORTING PIT*
Block cut-off grade | Classification | Tonnes x 1000 | Au g/t | Au Ounces x 1000 | ||
0.20 g/t | Indicated | 157,267 | 0.52 | 2,613 | ||
Inferred | 35,150 | 0.43 | 483 | |||
0.25 g/t | Indicated | 118,475 | 0.61 | 2,334 | ||
Inferred | 24,799 | 0.51 | 408 | |||
0.30 g/t | Indicated | 93,679 | 0.70 | 2,117 | ||
Inferred | 18,129 | 0.60 | 350 | |||
0.50 g/t | Indicated | 47,391 | 1.02 | 1,548 | ||
Inferred | 7,315 | 0.93 | 219 | |||
*Please refer to the notes accompanying Table 1, above, for additional information. The Black Pine updated MRE is shown in bold and italic font. | ||||||
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.
TABLE 3: SENSITIVITY ANALYSIS USING LOWER CUT-OFF GRADES*
Cut-off (g/t Au) | Category | Tonnes | g/t Au | Ounces Au | ||
0.10 | Indicated | 311,571,000 | 0.34 | 3,412,000 | ||
Inferred | 97,244,000 | 0.27 | 850,000 | |||
0.15 | Indicated | 230,709,000 | 0.41 | 3,056,000 | ||
Inferred | 66,042,000 | 0.33 | 702,000 | |||
0.17 | Indicated | 197,518,000 | 0.45 | 2,875,000 | ||
Inferred | 50,260,000 | 0.37 | 599,000 | |||
0.20 | Indicated | 157,267,000 | 0.52 | 2,613,000 | ||
Inferred | 35,150,000 | 0.43 | 483,000 | |||
*Please refer to notes accompanying Table 1, above. The reporting MRE is shown in bold and italic font. Tonnes, grade and ounces are expressed within a series of nested pit shells generated at | ||||||
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
A recently submitted modification to the
The 2023 drill program commenced on
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.
ABOUT BLACK PINE
Black Pine is located in the northern
Gold mineralization at Black Pine is hosted in a 100 to 500 m-thick package of receptive, faulted carbonate rocks of the Pennsylvanian Oquirrh Formation. The rocks show evidence of extensive decalcification and clay alteration typical of Carlin-style gold deposits and are strongly oxidized over the entire extent of the 14 km2, exposed portion of the gold system.
Metallurgical column test results received to date indicate rapid gold recoveries, relatively insensitive to crush size, which support a simple, low-cost heap-leach process.
A virtual site tour and 3D model of Black Pine property, including details about the geology and mineralization, will be available in due course on the Company’s website: libertygold.ca.
ESTIMATION METHODS
The resource estimate was completed by
- The gold mineral resources at the
Black Pine Project were modeled and estimated by:- Developing a geological model, in Leapfrog Geo reflecting low-angle fault control and stratigraphic control of mineralization hosted in receptive carbonate host rocks;
- evaluating the drill data statistically;
- interpreting low (0.1 g/t Au) and high-grade (0.3 g/t Au for Rangefront and 0.5 g/t Au for all other areas) gold-domains using Leapfrog Edge;
- compositing data to 3.048 metres (10 feet) within the gold domains;
- coding a block model comprised of 10 x 10 x 5 (x, y, z) metre blocks and sub-blocked to 2.5 x 2.5 x 1.25 metre blocks to the domains;
- analyzing the modeled mineralization geostatistically to aid in the establishment of estimation and classification parameters;
- interpolating gold grades using inverse distance cubed (ID3) and a three pass interpolation strategy into the model blocks using the mineral domain coding to explicitly constrain the gold grade estimations; and
- evaluating, statistically and visually, the resulting model in detail prior to finalizing the mineral resource estimation.
- The Black Pine Deposit mineral resource has been constrained by optimized pit shells created using a gold price of
US$1,800 /ounce and pit slopes ranging from 45 to 47 degrees in eight sectors defined by geotechnical studies. Additional inputs for the pit-optimizations include: Mining -$2.35 /tonne mined, heap leaching -$2.00 /tonne processed; and G&A cost of$0.80 /tonne processed at an assumed 10 million tonnes per year processing rate. Gold recoveries are based on equations derived from metallurgical data and vary by grade and rock unit. A 0.5% net smelter return royalty was also applied.
- The drilling database for the project contains 1,854 historical RC holes and 23 diamond core holes, as well as 768 RC and 30 core holes drilled by
Liberty Gold . The historical holes at theBlack Pine Project were primarily drilled from the mid 1980s to the late 1990s by Noranda and Pegasus Gold. - A technical report on the updated resource estimate will be prepared in accordance with NI 43-101 and filed within 45 days of this news release on Liberty Gold’s issuer profile on SEDAR at www.sedar.com
The technical information contained in this news release has been reviewed and approved by Mr.
ABOUT
For more information, visit libertygold.ca or contact:
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@libertygold.ca
QUALITY ASSURANCE – QUALITY CONTROL
Drill composites were calculated using a cut-off of 0.10 g/t Au. 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 50% to 90% of true width. Drill samples were assayed by ALS Limited in
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to
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 operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; the timing of the publication of any updated resources; delays in permitting; possible claims against the Company; labour disputes and other risks 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
Although
Cautionary Note for
The information in this news release, including any information incorporated by reference, and disclosure documents of
Without limiting the foregoing, these documents use the terms “measured resources”, “indicated resources”, “inferred resources” and “probable mineral reserves”. Shareholders in
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1 Included in the Updated Technical Report and Resource Estimate for the
Source:
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