TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Uranium & Metals Corp. (???Liberty
Star?????or the?????Company???)
(OTCQB:
LBSR), which holds 100% interests in the Company???s premier exploration
property for porphyry copper, gold and associated commercial metals, The Hay
Mountain Project (southeast Arizona - Cochise County), is pleased to
announce a shareholder update and comments from the CEO. Additionally,
new travel arrangements have been set: Mr. Briscoe and Director Brett
Gross depart for Manila, Philippines, February 26th to meet a
group of mining professionals introduced to the Company by a long-time
Liberty Star shareholder, mining engineer and investor, in an all-day
meeting on Monday, March 2, 2015. The pair plan to make multiple
in-depth presentations to an audience of potential investors that have
signed binding non-compete/non-disclosure agreements. The naseba
roadshow announced in NR
193 has been postponed.
James A. Briscoe, Chairman, CEO and Chief Geologist, offers the
following update and comments:
???At this time I feel it is important to reaffirm our goals for the Hay
Mountain Project and the company at large. The financing of our yearlong
Phase 1 drilling program at our Hay Mountain Project remains priority
one. I plan to travel to Manila, Philippines, to meet sophisticated
potential investors with this goal in mind. We were scheduled to travel
to the Middle East for a roadshow sponsored by naseba/Naru Capital, but
events there and ensuing turmoil have intervened and I and the board of
directors have decided that I should not travel to the area until
security issues have been resolved. I have arranged with Naru/naseba to
undertake teleconference meetings with appropriate candidates from the
Middle East area for now. While Hong Kong was on the agenda and is a
good venue, we will have to put it off until more contacts have been
made.
???Let me go over some of the financial realities we are operating under
right now that have impacted the Company. Natural resource prices have
hit multiyear lows which have turned investment not only away from our
efforts, but the industry at large. I invite you to look at the stock
trading charts of any exploration or mining company and you will see red
ink everywhere. I believe this will not last long term and that copper
and gold prices must go up: if not immediately, the trend must return to
conform to the global demand for resources that is widely acknowledged.
While I am in no position to take responsibility for this mega-trend
knowledge, I do intend to capitalize on it for shareholders when
negotiating with potential investors in Hay Mountain. Right now the cost
of exploration is depressed: it will be a sage partner who will enter
the market at its very lowest and understands the adage 'buy low, sell
high' and understands the supercycle for metal prices, especially copper
(see Don???t
Get Hung Up on Short-term Copper Prices: Lawrence Roulston, Jan 22,
2015).
???I also want to address questions that have come to my attention:
???Question 1: Is a reverse split under consideration? I am not
considering this option at this time. Even if I did decide to reverse
split because of a new regulatory requirement or other unforeseen
reason, I would first seek approval of the shareholders to increase the
authorized capital, and there would be prior notice through our filings
with the SEC. When we progress to the drilling stage and as the copper
price rises, as it always does and will again, I believe our fortunes
will rise as well, and a rollback will have seemed inconsequential.
???Question 2: Am I considering changing the Phase 1 drilling program
to drilling a couple of mother holes soon, using Liberty's funds, rather
than waiting for a JV? No, I think that is not a good idea for the
Company and its shareholders. My thinking stems from my experience and
the history of exploration in the area. I???ve been involved in porphyry
copper exploration and mining for 50 years. It was my good fortune to
have worked directly for two of the world???s great ore finders and
lifelong business partners, ASARCO geologists Kenyon
Richard, and James
Harold Courtright, respectively VP Exploration and Chief Geologist.
I???ve spent many hours and days with these two mentors, who took time to
review the exploration histories of the discovery of Silverbell, the
Mission Mine (both in Pima County, Arizona), and many others in Arizona,
Nevada, Canada, southern Peru, Mexico, the Mother Lode gold belt,
California and the Mesquite and Cargo Muchacho gold mines in southeast
California. I spent two intensive years working in the Silverbell mine
under them where I extended and expanded the seven-year-long drill
program which had about 'six weeks' to go on my arrival to an additional
4 years with additional drill rigs. I found with this intimate contact
with a classic operating open pit porphyry copper mine that even a
porphyry copper can have dead spots in it. In a study I personally set
up, I determined that if Silverbell had been completely covered and had
only an IP (induced polarization study and anomaly: the primary
geophysical tool at the time) it would have required 21 holes spaced on
a 1,000 foot grid, to be sure that one intersected ore grade material.
???To hope that ???a hole or two??? would intersect ore is a sure road to a
???gambler???s ruin?????and would never have been allowed under the Richard and
Courtright team management. Note it took them 27 holes into the Mission
target before ore grade material was cut by the diamond drills,
resulting in the massive Mission Mine that has now been operating 50
years with at least 30 years left. Liberty Star will continue to pursue
our careful plan that will result in a thorough and professional test of
the world-class anomaly at the Hay Mountain Target 1. Remember, the Hay
Mountain target is projected to be a mega multiyear exploration,
development and mining project. The dimension of the geochemical and
geophysical response is 4 miles long by 2 miles wide, a permissible size
to contain a ???World Class??? very large mineral deposit. The only way to
determine where the hot spots are is to drill diamond drill holes to
test for mineralization while confirming and honing our geophysics,
geology, and geochemistry knowledge. Rather than making Phase 1 small
and desperate, careful analysis sees the project expanding the possible
number of viable targets and the funding requirements. One of the key
attributes of Phase 1 is its economic practicality: that would be
completely destroyed if a drilling rig was employed to only drill two
holes because the drill and all of its men and equipment is expensive to
mobilize and demobilize. Also ore grade mineralization might be missed
entirely.
???Raising money is very hard in the current economic circumstances, but
given recent interest the Hay Mountain Project has generated, certainly
possible.
???We have serious interest from experienced mining professionals that
also possess the financial means to invest in Hay Mountain and will also
participate in the conceptualizing of operations there. The invitation
to present in Manila came from Mr. Tomas Malihan, CEO & President of
Oremet Corp., Mr. Angelito Doria, VP Civic Corp., and Mr. Alfonso Doria,
Philippine mining engineer and longtime supporter and major Liberty Star
shareholder. Mr. Alfonso Doria completed a 3 day trip with me to
southeast Arizona copper mines surrounding Hay Mountain and then Hay
Mountain, examining surface outcrops, and technical documents concerning
the Hay Mountain Project. He was duly impressed with the thoroughness of
the approach and indications of the presence of a large but covered
metal source resulting in geochemical, alteration and geophysical
indications. His report of his evaluation resulted in the
above-mentioned invitation to present in Manila. In an all-day meeting
at a major hotel in downtown Manila between 10 and 20 mining
professionals, including mining representatives from the Philippines,
China, and India, will listen to me and Mr. Brett Gross, Mining
Engineer, Attorney and Liberty Star Director. I will speak extensively
about the geology, geochemistry and geophysics of Hay Mountain and why
they indicate a mineral body at depth. Mr. Gross will present an
innovative and financially attractive proposal to them for funding Hay
Mountain, Phase 1 and beyond. There will be time for detailed
information transfer as well a question and answer session.
???Multiple copper and precious metal mines are underway in southern
Arizona, primarily funded by Canadian junior to intermediate companies.
We have now been contacted, regarding interest in Hay Mountain, by three
major international mining companies that are among the world's largest.
This is indicative of the perceived quality of the Hay Mountain Project.
We hope these expressions of interest generate visits to the Hay
Mountain area, continued due diligence by multiple parties and the
eventual signing of a joint venture agreement. This is not a quick
process to undertake a large project, but it is a beginning. We are
optimistic that even during this period of low metal prices we are
generating genuine interest and feel optimistic that a deal or deals
will be struck on Hay Mountain.???
"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 our entire planned drilling program; that mineral prices
will rebound; 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; mineral prices
may not rebound in time for us to keep our properties; 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.