TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Uranium & Metals Corp. (???Liberty
Star??? or the ???Company???)(OTCQB:
LBSR)
is pleased to update its shareholders and interested parties on the
completion of the compilation and interpretation of the Hay Mountain
porphyry copper geophysical data along with geochemistry and design of a
Phase 1 drill program.
During the last 6 months significant additional details on the
subsurface of the Hay Mountain porphyry copper geochemical anomaly have
come to light. These are enumerated in approximate chronological order:
-
Detailed interpretation of the ZTEM geophysical survey revealed
that the anomaly is much larger than previously realized. Based on the
analysis of all the data, it is now realized that it could contain the
footprint of any of the largest porphyry copper deposits known in
North America. Additional geophysical interpretive work on the
abundant geophysical data was clearly warranted.
-
The electromagnetic component of the ZTEM system shows
conductors going to a depth of at least 1,520m (approx. 5,000 feet),
which would be commensurate with the base of the Paleozoic sediments
and their depositional contact with the Precambrian basement rocks.
This is similar to the mineralization at Bisbee, Christmas, Twin
Buttes, Rosemont and Morenci, Arizona and Cananea, Mexico, all within
about 161 km (100 miles) of Hay Mountain, and all are sediment (skarn)
hosted porphyry copper mines.
-
The detailed magnetic component of the ZTEM survey allows
the three dimensional analysis of the very large magnetic feature
which is coincident with the geochemical porphyry copper signature and
low resistivity signatures from the electromagnetic (EM) component.
This magnetic resonance imaging (MRI ??? just like physicians use ???
except in our case it is helicopter borne, not stationary in an office
??? and of course the scale is different), reveals important details of
what is comparable to known mineral bearing skarn in other districts
in North and South America, and throughout the world. Skarn (altered
limestone ??? see Liberty Star???s glossary
on web site) frequently contains high grade copper, gold, molybdenum,
tungsten and other metals. This is a common host for the nearby Bisbee
mines where early day production ranged from 7% to 30% copper. Other
deposits within about 241 km (150 miles) at Morenci, Silver Bell,
Mission, Twin Buttes, Rosemont, Globe and Christmas, Arizona, Chino,
New Mexico and Cananea, Mexico and others as well as mines in other
parts of the world have similar grades in skarn bodies.
-
The 3D magnetic data suggest the upper part of the skarn bodies
lie 30 to 90 meters (approx. 100 to 300 feet) below dirt cover. Their
magnetic signature suggests the upper 30 to 90 meters or more is
oxidized and copper would be in oxide form that would allow shallow
open pit mining, heap leaching solvent extraction and electrowinning
(OPHLSXEW) to produce 99.99% wire grade copper as seen at the new
Safford, Arizona mine and others. It might also be like the nearby
Bisbee deposit which produced an astounding number of museum quality
green copper oxide and other mineral specimens of great value.
-
Analysis of the data generated in the studies identified above
has made it possible to lay out a targeted drill program. Recent
consultation with directional drilling contractors suggests that a
significant reduction of the number of drill sites can be made. This
will minimize surface disruption and allow the drilling of one mother
hole and up to 8 daughter holes from one drill site. This should
significantly reduce the cost of drilling, as the directional daughter
holes will save penetrating repeatedly to the daughter hole kick off
depth. This directional drilling is similar to oil field standard
procedure.
-
The availability of new equipment. Largely dependent on new
high speed microcomputers, combined with the Internet suggest a more
efficient approach to the rapid drilling this project will require.
-
Development time and financing availability
Briscoe has
been told by well-capitalized investors during his world travels over
the last 11 months that no more than seven years is an acceptable time
for exploration and start of production. In response, the Company has
designed a drilling exploration program to operate 24/7/365 for four
years assuming ore grade material is intercepted. A mine would go into
production in the seventh year. If a near surface oxide copper ore
body is present (like the nearby Johnson Camp Mine and I-10
Porphyry-Excelsior proposed mines), as suggested by the geophysics,
such production on a moderate scale from a shallow pit could be
feasible, thus greatly simplify this very tight schedule. Continued
enlargement of facilities could consist of a build out of a large deep
high grade underground mine or a much larger open pit mine or both; or
perhaps a block
cave operation.
Required capital funding for the Hay Mountain Project would be Phase 1
drilling at US $5 million to be expended in the first year to confirm
presence of ore grade mineralization. Post phase 1 drilling activities
in the amount of US $60 million are to be expended over the next three
years. Assuming success in defining a mineral resource,
permitting, metallurgical studies, and mine planning and plant design
would quickly follow as would a Bankable Feasibility Study, which would
be completed at the end of year five. Production would follow and is
projected to be attained in the seventh year.
???James A. Briscoe??? James
A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty
Star Uranium & Metals Corp.
Forward-Looking Statements
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 Phase
1 drilling will cost US $5 million to be expended in the first year.
Post phase 1 drilling activities in the amount of US $60 million are to
be expended over the next three years. That assuming success in defining
a mineral resource, permitting, metallurgical studies, and mine planning
and plant design would quickly follow as would a Bankable Feasibility
Study, which would be completed at the end of year five. Production
would follow and is projected to be attained in the seventh year.
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.