Liberty Gold Corp.’s (TSX: LGD) (OTCQX: LGDTF) ongoing metallurgical studies at its Goldstrike Oxide Gold Project in Utah show the gold recovery potential from heap leach pads could extend the mine’s life.
On Friday, the company provided an update on activities related to its process water supply, lands exchange and gold recovery potential from the leach pads at its Goldstrike Oxide Gold Project in Utah.
At the Goldstrike site, metallurgical studies are being conducted to assess the feasibility of using heap leaching for the historically mined materials. This could potentially enable the processing of these materials early on in a future heap leach mining operation. Such an approach would not only extend the mine’s lifespan but also enhance the project’s overall economics.
To facilitate these studies, sonic drilling was performed in the Hamburg/Main/Hassayampa area. This drilling generated four composite samples from previously leached oxide ore obtained from the two historical leach pads. Additionally, two composite samples were obtained from pad backfill material, which fills the areas that were previously mined as open pits. Furthermore, two composite samples were taken from waste rock materials.
Location plan of Sonic Drill holes on Historic Pads. Image via Liberty Gold.
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Historical production records show 7.2 million tonnes of oxide gold ore
According to historical production records, approximately 7.25 million tonnes (Mt) of oxide gold ore, with an average grade of around 1.2 grams per tonne gold (g/t Au), was leached on the two pads during previous mining activities from 1988 to 1994.
Based on the past recovery rates, it is estimated that there might still be up to 70,000 ounces of gold remaining in the now closed and remediated historic heaps. The test results indicate that a portion of this gold could potentially be extracted using conventional heap leaching methods.
The Leach Pads 1 and 2, along with the underlying backfill, are situated directly above the Main/Hassayampa/Hamburg oxide gold resource. If a future open pit mining operation were to be considered, these areas would need to be stripped to access the underlying oxide gold resource.
“Recent metallurgical test results indicate that the historically mined ore, which contains residual oxide gold, performs well under conventional oxide heap leach conditions,” said Jason Attew, president and CEO for Liberty Gold.
Cross-section through Historic Leach Pads. Image via Liberty Gold
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Liberty Gold performs hydrological evaluation of area water
Metallurgical column testing conducted at Goldstrike on leach pad material yielded a weighted average gold extraction of 49.3 per cent through column leaching. The material had an average gold grade of 0.58 g/t Au. Actual gold extraction happened fast with over 80 per cent of the leachable gold pulled within the first 10 days.
Liberty Gold has also enlisted the services of Loughlin Associates and LRE Water, renowned consultant groups specializing in water exploration and assessment in the Great Basin, to conduct a comprehensive hydrological evaluation of potential water sources in the area.
Initial research has begun with fieldwork is scheduled to commence in July. The projected water demands for a forthcoming mining operation vary from 1,000 to 1,200 acre feet per year, which is the equivalent of approximately 39 to 47 liters per second, with a maximum limit of 1,500 acre feet per year.
The company also included a parcel of land surrounding the Goldstrike deposit as part of a proposed land exchange between the US Bureau of Land Management and the Utah School and Institutional Trust Lands Administration.
The exchange is governed by the “Utah School and Institutional Trust Lands Exchange Act of 2023,” also known as Senate Bill 1405. The bill was introduced to the US Congress in May and is currently under review in both the House and the Senate committees. Liberty Gold is actively monitoring the progress of this legislation as it moves through the approval process.
Liberty Gold shares remained flat at $.046 on Friday on the Toronto Stock Exchange.
Liberty Gold also has the Black Pine property in Idaho, which is hosted with Carlin-style gold .
NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF) is another Canadian junior gold explorer with properties in Idaho, such as the Nutmeg Mountain property, where its most recent drilling campaign campaign intercepted strongly oxidized, silicified sandstone with quartz veining from surface at its Nutmeg Mountain gold project in Idaho, which is a mineral pattern that is highly prospective for gold mineralization.
The technical group has been learning a lot about the regional and localized structures, having spent the past 10 months going through the historical drilling after each drillhole, according to Brandon Bonifacio, CEO of NevGold.
NevGold shares rose 4.3 per cent to $0.36 on Friday on the TSX Venture Exchange.
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