Liberty Gold discovers third gold zone at Black Pine

Reverse circulation (RC) drilling at Liberty Gold’s (TSX: LGD) Black Pine project has discovered a third zone of oxide gold mineralization – D-3 – underneath the historic drilling boundary in southern Idaho.

The new zone is defined by three holes: two of these, LBP125 and LBP129, are 450 metres apart and lie in the same section, while the third, LBP127, was drilled 215 metres to the south.

Drill highlights from the D-3 zone include 34 metres of 1.98 grams gold per tonne, starting at 224 metres, as well as 29 metres of 1.6 grams gold per tonne, starting at 241 metres and 31 metres of 1.11 grams gold from 264 metres.

Drilling along a 400-metre untested corridor between two historic pits at the site has also extended the 1-km-long D-1 area of gold mineralization by 500 metres to the southeast and by 40 metres to the west. Highlights include 29 metres of 0.54 gram gold starting at a depth of 131 metres and 18 metres of 0.59 gram gold from a depth of 155 metres.

Drilling around the transition between the D-1 and D-2 zones also returned oxide gold intervals, with intercepts such as 21 metres of 1.27 grams gold from 180 metres and 9 metres of 1.12 grams gold starting at a depth of 244 metres.

“The combination of several high-grade oxide gold discoveries in close proximity to each other, and in association with recently released excellent metallurgy, elevates the value of the Black Pine project,” Cal Everett, the company’s president and CEO, said in a news release.

Everett added that the company has added a third drill to the project; two of the rigs are currently focused on D-3.

Liberty has increased its RC drilling budget for the exploration program to 46,000 metres, up from 28,000 metres, and is also planning additional core drilling later this season.

The exploration work is taking place over a 7-sq.-km permit, and the company is working to expand this area by an additional 5 sq. km. Additional metallurgical testing is also underway. Earlier this month, Liberty reported results of the first phase of test work on the oxide material.

Black Pine is a Carlin-style gold system in the northern Great Basin. The past-producing operation generated 435,000 gold oz. between 1991 and 1998 at a head grade of 0.7 gram gold from seven pits. Anomalous gold mineralization in soils has been traced at the 49-sq.-km site over 12 square kilometres.

Liberty Gold has traded in a 52-week range of 48¢ and $1.91 per share. At press time in Toronto, it traded at $1.89 per share. The company has 245 million common shares outstanding for a $463-million market capitalization.