Liberty Gold to sales shares of Kinsley Mountain
Liberty Gold announces the receipt of the Initial Option Payments (IOP) under the definitive purchase option agreement for the sale of its 79.9% interest in the Kinsley Mountain gold deposit, a Carlin-style gold deposit in eastern in Nevada to Barrian Mining Corp.
Pursuant to the terms of the Agreement, Liberty Gold has or will receive in total consideration for its interest in Kinsley, an aggregate US$6,250,000 in cash and shares plus a 9.9% interest in New Placer Dome. The consideration will be paid in three stages over a two-year period.
Cal Everett, President and CEO of Liberty Gold will join New Placer Dome as senior financial advisor. Proceeds received by Liberty Gold will be added to the Company treasury to accelerate exploration activities on the 100% owned Black Pine gold project in Southern Idaho.
Since April 1, 2020, two drills have been operating at Black Pine building off of the two high grade oxide gold discoveries from 2019. A third drill has been mobilized to site. A regional drill test has also been initiated to probe a permitted 7.3 square kilometre area where historical drilling has intercepted oxide gold in numerous locations.
Historical drill holes average approximately 92 metres long. Current drilling is testing the full favourable sedimentary host rock assemblage to depth with drill holes up to 350 metres in length. Metallurgical column testing is ongoing with results pending. Bulk sample test results are anticipated in July and drill core test results in early Q4.
Moira Smith, Ph.D., P.Geo, Vice-President Exploration and Geoscience, Liberty Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and approved the scientific and technical information contained in this release.
