LGD: CA
LGDTF: US

kinsley

Kinsley Mountain is a Carlin-style, sediment-hosted gold property located south of Newmont Mining’s Long Canyon deposit, with a stratigraphic and structural setting and gold mineralization similar to other sediment-hosted gold systems in the underexplored area east of the Carlin Trend in northeast Nevada.  Located in southeast Elko County, Nevada, approximately 90 km from Long Canyon, Kinsley is host to a past-producing mine with an extensive exploration database and numerous, untested gold targets.

Liberty Gold commenced drilling in 2012. In late 2013, Liberty discovered the high-grade Western Flank Zone in a newly-identified stratigraphic horizon beneath the old mine trend. Drilling in 2014 and 2015 culminated in the release of a maiden resource estimate in late 2015. 

High-grade gold resource estimate
In December 2015, Liberty Gold recently completed an independent resource estimate that defines a significant high-grade zone at the Western Flank, along with near-surface oxide ounces. Mineralization hosted in the Secret Canyon Shale in the Western Flank zone includes 284,000 Indicated ounces at an average grade of 6.04 g/t gold. At a 3 g/t cut-off grade, most of the resource remains, delineating 248,000 Indicated ounces at an average grade of 9.15 g/t gold. The potential for resource expansion is excellent due to widespread alteration, prospective geology and gold at surface, and over 80% of the property is untested by drilling.

Metallurgy
Initial metallurgical test results at Kinsley Mountain demonstrate the amenability of high-grade mineralization from the Secret Canyon host rock to produce a high-grade concentrate amenable to flotation processing, with grades up to 312 g/t gold and recoveries up to 95%. Additional metallurgical results from the Dunderberg (Candland) Shale at Kinsley Mountain, demonstrate that Kinsley’s main host rocks can produce medium to high-grade concentrates with very good to excellent gold recoveries, and the potential of low capital cost options for possible mining and processin.

Strong geology in established area
Strata at Kinsley Mountain range from middle Cambrian to upper Ordovician.  Most of the mineralization discovered and mined in the past is hosted in the middle Cambrian Candland Shale and overlying Notch Peak Formation, the latter a host at Long Canyon.  Receptive potential host strata lying above and below this zone (Lower Ordovician Pogonip Formation – host at Long Canyon, and middle Cambrian Secret Canyon shale – host at Bald Mountain and Eureka) were never tested. The structural setting is also similar to Long Canyon, with evidence of Mesozoic contractional deformation overprinted by Tertiary normal faulting.

Past producing mine
Gold mineralization was discovered on Kinsley Mountain in 1984. Alta Gold Company purchased the property in 1994 and started open-pit mining in 1995, producing about 138,000 ounces of gold at grades of 1.4 g/t gold through 1999 (depending on source) from a series of six small pits aligned in a NW-SE direction. The mine closed when Alta Gold declared bankruptcy during a period of very low gold prices.

Oxidized gold ore was recovered by low-cost, conventional heap leach methods.

Majority owner and operator
In September 2011, Liberty Gold purchased the option to earn a controlling interest in the Kinsley Mountain Property. At present, Liberty Gold has a 79% interest in Kinsley Mountain and is project operator. Intor Resources Corporation, a subsidiary of Nevada Sunrise Gold Corporation, owns the remaining 21%. The property consists of 469 claims and 9,570 acres (3,853 hectares) on U.S. Bureau of Land Management (BLM) land.

Our focus today
Our exploration strategy is focused on identifying additional areas of high-grade mineralization in the Secret Canyon Shale horizon, especially south of the Kinsley mine trend where it extends to relatively shallow depths. Our strategy employs compilation and 3D analysis of a wealth of historic data, detailed geologic mapping and analysis, aggressive drilling and deposit modeling.

Drilling by Liberty Gold and the discovery of the high-grade gold zone in the Secret Canyon Shale has greatly increased the prospectivity of the southern third of the property.

Our current focus is on testing a number of new targets in the Secret Canyon Shale along and south of the Kinsley mine trend. Drilling in 2017 to the east of the Western Flank Zone extended mineralization both in the Secret Canyon Shale horizon and the overlying Dunderberg Shale, including:

  • From the Secret Canyon Shale Zone (lower host):
    • 5.30 grams per tonne gold (g/t Au) over 29.0 metres (m) including 7.84 g/t Au over 16.8 m in PK221
    • 3.68 g/t Au over 3.0m in PK224
  • From the Dunderbeg Shale Zone (upper host):
    • 12.4 g/t Au over 4.6 m including 35.1 g/t Au over 1.5 m in PK 221
    • 6.84 g/t Au over 7.6 m including 12.8 g/t Au over 3.0 m in PK224

There are no assurances that the geological similarities to Newmont Mining’s Long Canyon project or other projects along the Long Canyon Trend will result in the establishment of similar resource estimates at Kinsley, or that the Kinsley Project can be advanced in a similar timeframe. 

The resource estimate for Kinsley was completed by Michael Gustin, Ph.D, CPG, of Mine Development Associates, Inc. (MDA) of Reno, Nevada, an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended.  Estimation methods are summarized below. Further details of the estimation methods and procedures are available in a NI 43-101 technical report filed on SEDAR (www.sedar.com).

Moira Smith, Ph.D., P.Geo., VP Exploration and Geoscience, Liberty Gold, is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information contained herein is accurate.