TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Uranium & Metals Corp. (the “Company”)(OTCBB:LBSU)
is pleased to announce that the CEO/President of the Company, James A.
Briscoe, and the CEO/President of Mayo Gold Explorations Ltd. (“Mayo
Gold”), Pedro Villagran Garcia, have signed a
Letter of Intent to joint venture the El Papago Project (“El
Papago”) in Sonora, Mexico and the Tombstone
Porphyry Center (“Tombstone”)
in southern Arizona. El Papago is currently owned by Mayo Gold and
Tombstone is currently owned by Liberty Star (NR
74). According to the agreement the Company will gain a 35%
ownership in El Papago and Mayo Gold will provide funding and work to
earn a 50% interest in Tombstone.
A proposal on the operation of the El Papago accompanies the Letter of
Intent. In summary:
-
El Papago lays on a 12 square mile alteration zone about 10 miles
southwest of the million ounce Santa Gertrudis deposit in northern
Sonora, about 70 km from the US border
-
El Papago has historical inferred resource of gold in the 300 thousand
ounce range with silver
-
NI 43 101 Technical Report compiled in May, 2007 recommends a 3
million dollar exploration program and confirms mineralization is like
that at Santa Gertrudis
-
Pre-existing data allows for a relatively short timeline from mineral
exploration to mining a resource, if sufficient resources are proven.
Both parties agree to prepare a more formal agreement and one in a
format in Spanish that can be registered under Mexican Mining Law with
the Register de Mines of the Direccion General de Minas.
If funding does not become available within 30 days, the agreement can
be dissolved by the Company or Mayo Gold without penalty.
ON BEHALF OF THE BOARD OF DIRECTORS
“James A. Briscoe”
James A. Briscoe,
President/Director
About Liberty Star’s
Mineral Exploration Projects
Liberty Star Uranium & Metals Corp. is a mineral exploration company
currently engaged in an ongoing drilling program for the discovery of
uranium ore deposits on the Arizona Strip region of the Colorado Plateau
(North Pipes Super Project). Liberty Star also maintains exploration
projects in Alaska for copper, gold, silver and moly, in Nevada for gold
and silver, and southern Arizona for porphyry copper and other metals.
Information on these can be found at Liberty Star’s
extensive web site http://www.libertystaruranium.com/.
About Mayo Gold Explorations Ltd
“Mayo Gold is an international exploration
mining company operated from Vancouver, B.C. and Hermosillo, Mexico.
Currently Mayo Gold has a main project search based in Mexico but also
looking for exploration projects in Chile, Peru, Brazil, Argentina,
Colombia, Bolivia and Venezuela. Our objective is to explore for
precious metals in these countries, primarily for gold and silver.”
http://www.mayogold.com/
SAFE HARBOR STATEMENT
Statements in this news release that are not historical are forward
looking statements. Forward looking statements in this news release
include that we will enter an agreement to acquire an interest in the El
Papago project; that Mayo Gold will pay the costs on the Tombstone
property; and that there would be a relatively short timeline from
exploration to mining. These statements are subject to considerable risk
in that we may not agree to terms and/or the properties may not pass our
or Mayo Gold’s due diligence. Further, even
if we do agree to terms, there is no assurance that any commercial
quantities of minerals can be exploited on the properties. If there are
commercial quantities of resources, there are many risks which may delay
or prevent mining, including environmental issues and permits,
financing, obtaining labor, and many other risks. Lastly, mineral
resources on properties in the area of our projects are no guarantee or
even an indication of mineralization on our properties.
Readers should refer to the risk disclosures outlined in the Company’s
most recent 10-KSB and the Company’s other
periodic reports filed from time to time with the Securities and
Exchange Commission.