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Liberty releases Goldstrike PEA

US-focused Liberty Gold (TSX: LGD) will work on key development requirements having released a positive preliminary economic assessment for its Goldstrike gold project in Utah.
Liberty releases Goldstrike PEA Liberty releases Goldstrike PEA Liberty releases Goldstrike PEA Liberty releases Goldstrike PEA Liberty releases Goldstrike PEA

The historic Moosehead pit at Goldstrike

Staff reporter

The company's goal is to become a 100,000-plus ounce per year gold producer and the PEA outlined an annual average production of 95,000oz, with a peak of about 117,000oz, at a headgrade of 0.48g/t.

It put the preproduction capex at US$113.2 million, after-tax NPV (5%) at $129.5 million and an internal rate of return of 29.4%, with a 2.3-year payback.

The all-in sustaining costs were slated at $793/oz recovered for the 7.5-year minelife.

The PEA was based on the maiden resource unveiled in February and restated using a lower 0.2g/t cut-off, for an indicated 925,000oz at 0.5g/t and an inferred 296,000oz at 0.47g/t.
 
"The lower cut-off improves the economics of the project, delivers a lower strip ratio, produces more ounces and extends the mine life," president and CEO Cal Everett said.

"The PEA does not include any potential benefits from by-product silver production, or from processing residual gold remaining in the historical heap leach pads, which are currently being drill-tested."

The company was working to further de-risk the project through more drilling, pursuing a silver resource, metallurgical test work, social license considerations and mine plan optimisation.

Liberty had $7.2 million in working capital at the end of March.

RCF Opportunities Fund took an 8.4% stake in the company as part of a C$10.5 million (US$8 million) private placement in January.

Liberty shares closed unchanged yesterday at C44.5c, a midpoint in the 52-week range of 36.5-53c.