TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Uranium & Metals Corp. (???Liberty
Star?????or the?????Company???)
(OTCQB:
LBSR) is providing an update on its plans to finance the Phase 1
exploration drilling program on its premier property, the Hay Mountain
Project, for porphyry copper, gold, moly and other metals in Cochise
County, southeast Arizona. The Phase 1 financing requires an expenditure
of USD $6.5 million to drill up to 50 vertical ???mother??? holes (to a
depth of up to 5,000 feet) and up to eight ???daughter??? holes per mother
hole, depending on what is encountered (News
Release 189). Another 31 holes on our Federal lode mining claims
adjacent to the Arizona State Mineral Exploration Permits (MEPs) have
subsequently been located, bringing the total number of planned,
pre-positioned, permitted holes on the grid to 81. The Company is
pursuing permitting on the entire grid simultaneously, allowing movement
to almost any location within the geochemical, geophysical and geologic
anomalies, depending on results of surrounding holes, as soon as that
may be indicated by results of the previously drilled holes. The Company
may not drill all 81 holes during Phase 1, but permitting the entire
grid at once is more efficient in terms of time and costs given the
lengthy permitting timeline under state and federal regulation. This
would allow immediate continuation of Phase 2 drilling, with no time lag.
Phase 2 drilling could continue for up to an additional three or more
years with multiple drills. Discovery of thin exposures of silicified
and carbonate veined rock suggests that mineralization could be located
at less depth than was previously suggested by old geologic maps. This,
combined with the geochemistry and ZTEM geophysics, suggests a shallower
top of the mineral zone and mineralization going to significant depth.
In Phase 2 and beyond, planning could be for an open pit and a
continuous deep underground skarn (altered limestone) mineral body.
The financing proposal is offered to foreign and domestic entities that
have or might express an interest in the project as a joint venture (JV)
arrangement:
1. The JV would be between partner and The Hay Mountain Project owned by
Liberty Star, and would be managed by Liberty Star.
2. Partner would provide capital of $6.5 million for the Phase 1
drilling program and have an option to contribute $65 million for the
second phase of drilling. Investors would also have the right of first
refusal to contribute addition funds for the final permitting, design,
construction and development of a mine(s) at Hay Mountain.
3. Liberty Star is not contemplating an arrangement exchanging stock to
capitalize Phase 1 exploration drilling or subsequently Phase 2, and
later phases for permitting, design and construction, which would be
dilutive, but instead a Joint Venture, as is common in the industry.
The Company has received and anticipates receiving additional
Non-Disclosure Agreements (NDAs) from potential funders introduced by
naseba/Naru Capital and other entities, foreign and domestic. These NDAs
allow Liberty Star to disclose confidential scientific data to potential
funders as part of the potential funders??? due diligence programs.
States Liberty Star???s CEO/Chief Geologist James A. Briscoe: ???The value
of the Hay Mountain Project may be greatly enhanced with the discovery
of factors that may indicate mineralization near the surface, in
addition to a continuation of a skarn mineral body to great depth, which
would be mined by underground methods. We have completed surface
studies, and have scheduled due diligence visits to the site. We have
received word from the Arizona State Land Department (ASLD) that our
Plan of Operation with archaeology survey should be completed in one to
three months, entirely dependent on their schedule. In effect, we are
ready to get the diamond core drilling started. While I wish the process
of financing Phase 1 drilling at Hay Mountain would quicken its pace, I
am confident that the scientific data and the attractive JV proposal we
have put forth will net us a suitable partner in due course.???
???James A. Briscoe??? James
A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty
Star Uranium & Metals Corp.
View Liberty Star???s ???Introduction
to Hay Mountain Presentation???
Forward-Looking Statements
Statements in this news release that are not historical are
forward-looking statements. Forward-looking statements in this news
release include all our planned drilling program and our planned route
to access partners or funding sources. Factors which may delay or
prevent these forward-looking statements from being realized include:
the failure of our proposals to be accepted; we may not attract any
partners or funding sources; we may not be able to raise sufficient
funds to complete our intended exploration, keep our properties or carry
on operations; and we may encounter an inability to continue exploration
due to weather, logistical problems, labor or equipment problems or
hazards even if funds are available. Even if we find a partner, we may
not be able to reach agreement or carry out the development program as
contemplated. Despite encouraging data there may be no commercially
exploitable mineralization on our properties. Readers should refer to
the risk disclosures in the Company???s recent 10-K and the Company???s
other periodic reports filed from time to time with the Securities and
Exchange Commission.