PROACTIVE INVESTORS
Angela Harmantas – 09:00 Fri 16 Jun 2023 bit.ly/3CyfmVb
In the vast landscapes of Cochise County, Arizona, Liberty Star Uranium & Metals Corp. (OTC:LBSR), a dedicated mineral exploration company, has pinpointed what could potentially be a hot new gold prospect.
Nestled around six miles southeast of the iconic town of Tombstone, Liberty Star’s claims include a 40-acre mineralized zone within the Red Rock Canyon area. With surface outcrop expression and a history of significant gold mineralization, Liberty Star’s latest discovery has ignited excitement and anticipation within the mining industry.
“The interesting thing about Red Rock Canyon is that it has historical drilling data that shows significant gold ore quality intercepts,” CEO Brett Gross told Proactive recently. “We are postured right now to confirm that drilling and expand the program further.”
Because the drilling was done in the late 1980s, due to SEC’s SK-1300 regulations, Liberty Star cannot publicly disclose the historic drilling results. Consequently, the company is embarking on a new confirmation drilling program within the same 40-acre zone, estimated to cost a mere $750,000.
The initial phase has already received full permitting from the State of Arizona and is set to start right away. Once completed, Liberty Star will finally be able to give investors a much-anticipated glimpse into the true potential of the gold prospect.
In the meantime, Liberty Star has meticulously conducted extensive exploration surveys and collected numerous sample assays. These assays indicate gold mineralization spread across a sprawling 3.5 square mile area, with shallow depths and abundant outcrop of hydrothermal jasperoid host rocks. Building upon the confirmation drilling, Liberty Star plans to incrementally expand the program to encompass their entire holdings, striving to delineate the full extent of the prospective orebody.
This comprehensive drilling campaign is estimated to cost approximately $18 million and, if adequately funded to run continuously, could be accomplished within a promising timeline of 12 to 24 months.
Early-stage gold prospects often come with inherent risks, yet Liberty Star firmly believes that Red Rock Canyon presents a unique set of factors that mitigate these uncertainties.
“Firstly, the prior drilling in the 40-acre site, which intercepted gold-rich mineralization and surface outcrop, gives us confidence that the confirmation drilling program will yield similar results,” Gross told Proactive.
“Additionally, the program includes an induced polarization (IP) survey, enabling the definition of an IP signature for the gold mineralization. This valuable information will guide Liberty Star to the most promising areas for future drilling.”
Moreover, the presence of commercially significant gold grades in jasperoid outcroppings spanning the vast 3.5-square-mile expanse of Red Rock Canyon reinforces the project’s potential. The discovery suggests the existence of a large hydrothermal system that not only contributed to the porphyry copper anomaly in this region but also deposited high-grade gold in the jasperoid outcroppings – raising the probability of discovering a substantial and economically viable gold deposit within Red Rock Canyon.
By amalgamating these factors, Liberty Star confidently asserts that Red Rock Canyon poses significantly less risk than a typical early-stage gold prospect. To further minimize risk, the company intends to progressively advance the development of Red Rock Canyon, diligently de-risking the project as they proceed.
Liberty Star is looking for investors who share their vision, but the company faces challenges due to its status as a penny stock, which may encounter resistance from larger brokerage firms during transaction settlements. Additionally, Liberty Star has been designated a “shell risk” due to its lack of revenue generation, but that’s typical of most companies of Liberty Star’s size.
“Most small mineral exploration companies like us don’t generate revenues until the mineral deposits that they discover are either sold or developed,” Gross explained. “We’ve asked for the shell risk designation to be removed, but it’s taking a lot of time.”
Nevertheless, for those seeking opportunities in the penny stock niche market, smaller brokerage firms specialize in catering to such needs and may be the key to exploring the investment potential offered by Liberty Star.
If Liberty Star’s confidence pays off in the form of an economic deposit, the company could solidify its place as one of Arizona’s preeminent gold explorers.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas