Liberty Star Hay Mountain Project Update: Geophysics & Geochemistry Completed, S-1 Approved, Drill Plan Underway
TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Uranium & Metals Corp. (“Liberty Star” or the “Company”) (OTCQB: LBSR) announces an update of its premier exploration project for copper, gold, moly, lead, zinc, silver and REEs in Cochise County, southeast Arizona.
“We are not going to use drawdowns from the S-1 to fund the drilling program. These will be used for ongoing overhead; we plan to fund the drilling program through different non-dilutive sources that will be disclosed when such negotiation is complete.”
Hay Mountain Project update summary:
- Geophysics contractor Geotech Ltd. has completed 3D inversion magnetic data which correlates with geochem anomalies, and ZTEM - EM anomalies. Final interpretation by Geotech’s Chief Interpretative Geophysicist is pending.
- SEC Form S-1/A - the Company has received SEC Notice of Effectiveness. This drawdown facility will be used to cover the Company’s ongoing overhead expenses. Other means are sought to fund exploration drilling, minimizing any dilution to the Company’s stock.
Company CEO/Chief Geologist Jim Briscoe’s update:
“This week Geotech Ltd. delivered completed 3D inversion/magnetic images from its aeromagnetic analysis (part of the ZTEM system) of Hay Mountain. The images indicate that the magnetic anomaly is right on top of the geochemical anomaly and the ZTEM electromagnetic (EM) anomaly, which is what we had hoped. This type of a magnetic anomaly is exactly what identified the Pima-Mission mine in the Pima mining district 20 miles south of Tucson and about 80 miles west of Hay Mountain. These mines now compromise one open pit 7342 feet (1.4 miles) long, 7,244 feet (1.37 miles) wide and 1013 feet deep. It has been producing from a skarn ore body of copper, moly, silver, gold, lead, zinc and other metal elements, and it has just celebrated its 50th anniversary last year. It is estimated it will continue to produce for another 30 years. The ore body was completely covered and hidden by about 200 feet of alluvium (dirt) but was indicated by a strong magnetic anomaly.
“We have now compared the footprint of the Mission-Pima ore bodies to the magnetic anomaly high at Hay Mountain, electromagnetic anomalies and the nested geochemical anomalies. The footprint (horizontal or map projection) of the Mission-Pima ore body fits comfortably in the superimposed anomalies at Hay Mountain. Similarly, the footprint of both Bisbee, Arizona, and Bingham Canyon, Utah, also fit comfortably within the anomaly highs at Hay Mountain.
“Geotech recommends no further work on a 3D processing of the ZTEM response. Thus we have completed the remote sensing portion of the exploration of the Hay Mountain porphyry copper-gold anomaly. We are now ready and in fact have started plotting drill hole locations that will test the superimposed and mutually reinforcing anomalies. This work will go comparatively quickly. When completed we plan to contract archaeological review on the new drill sites to assure no destruction of antiquities. After that we will apply for drilling permits from both the Arizona State Land Department (ASLD) and the U.S. Bureau of Land Management (BLM). We will continue our conversations with potential funders of the first year of drilling with the goal of obtaining full funding for the four- year drilling program. However, if the first year of funding is in place, we will start the program.
“The slow, tedious targeting program is now at a state of completion.
“We are not going to use drawdowns from the S-1 to fund the drilling program. These will be used for ongoing overhead; we plan to fund the drilling program through different non-dilutive sources that will be disclosed when such negotiation is complete.
“We plan to embark on a carefully targeted drilling program that will progress relatively quickly, assuming funding is obtained. If we find what our numerous detailed and cutting-edge technical studies suggest is present, we hope to delimit mineralization that once drill-defined will lead to a minable deposit of significant proportions. The time table for drilling will be presented as soon as we receive permitting and money. Logistics and weather permit year-round drilling activity in a generally comfortable environment. Local supplies and labor are close at hand. The drilling can precede 24/7/365 if adequate funding is available.”
“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ CA
Liberty Star Uranium & Metals Corp.
Statements in this news release that are not historical are forward-looking statements. Forward-looking statements in this news release include: that a porphyry copper system is indicated; that we can find alternative means to funding our drill program, minimizing stock dilution; that we will then apply for drilling permits and seek full funding for the 4 year drilling program and that we hope to delimit mineralization that will lead to a minable deposit of significant proportions. Factors which may delay or prevent these forward-looking statements from being realized include misinterpretation of data; we may not be able to get equipment or labor as we need it; we may not be able to raise sufficient funds to complete our intended exploration or carry on operations; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company’s recent S-1, its 10-K and the Company’s other periodic reports filed from time to time with the Securities and Exchange Commission.