VANCOUVER, B.C. – Liberty Gold Corp. (LGD - TSX) ("Liberty Gold" or the "Company"), is pleased to announce its financial and operating results for the three months ended March 31, 2020. All amounts are presented in United States dollars (“USD”) unless otherwise stated.
Liberty Gold is focused on advancing a pipeline of Carlin-Style gold deposits in the Great Basin, U.S.A., a mining-friendly jurisdiction that is home to large-scale oxide gold systems ideal for open-pit heap leach mining. The Great Basin covers portions of the states of Nevada, Utah and Idaho. The Company has a proven track-record in discovery and building value in this region.
•Liberty Gold signed a definitive agreement to sell our interest in the Kinsley Mountain gold deposit to Barrian Mining Corp. (“Barrian”) for aggregate gross proceeds of $6.25 million plus 9.9% of Barrian, to be received in 3 stages over 2 years.
•In March 2020, we sold our 15% net profit interest in the Regent property in Nevada, to Ely Gold Royalties Inc. (“Ely”), for a total consideration of $800,000 and 2,000,000 warrants to purchase common shares in Ely (“Ely Warrants”). The Ely Warrants can be exercised for C$0.43 per Ely Warrant and expire on December 18, 2021.
•Since January 1, 2020, to the date of this MD&A we have received a total of C$2,172,000 and C$325,000 from the early exercise of Liberty Gold common share purchase warrants (“Warrants”) issued pursuant to the bought deal financings that closed on October 2, 2018and January 26, 2018, respectively; the Warrants are exercisable for C$0.60 and C$0.65, respectively, for a period of three years from issue.
•In February 2020, we announced the appointment of a new director, Barbara Womersley.
At Black Pine we:
•Announced commencement of our fully funded 2020 reverse circulation drill program, designed to continue expanding on the high grade oxide gold discoveries from 2019, as well as regional testing of targets in the surrounding district, selected by compilation of historical drill results, surface and pit wall mapping, and soil geochemistry. The area for targeted drill testing covers approximately 7.3 square kilometres (“km2”).
•Selected nine regional drill targets, based on three-dimensional modeling of potential northwest and northeast trending feeder fault corridors where they intersect favourable stratigraphic host rocks.
•Submitted an amendment to the Plan of Operations to the US Forest Service to increase the size of the permitted project area from 7.3 to 11.9 km2, including a large area between the main permit area and the Rangefront target to the southeast, where drilling in late 2019 encountered 55.3 metre (“m”) grading 0.49 grams per tonne oxide gold (“g/t Au”). Additional Phase 2 drilling in this area will be carried out when the permit is approved.
•Continued our metallurgical column testing program, with 6 columns derived from bulk sample material in the historic pit walls and 29 variability columns from large-diameter drill core.
SELECTED FINANCIAL DATA
The following selected financial data is derived from our unaudited condensed interim financial statements and related notes thereto (the “Interim Financial Statements”) for the three months ended March 31, 2020 as prepared in accordance with International Accounting Standards – IAS 34: Interim Financial Statements.
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