Liberty Gold (TSX: LGD) has completed the first resource estimate on its flagship 100%-owned Goldstrike project in southwestern Utah.
The oxide gold project near the Nevada border in the eastern Great Basin is a Carlin-style gold system that produced 209,000 ounces of gold from 12 shallow pits between 1988 and 1994.
But previous operators only scratched the surface, Liberty Gold believes, and its first resource, 75% of which is in the indicated category, marks an important first step in turning the 24-year-old past producer into a modern, multi-million ounce mining project.
Based on a combination of historic and Liberty Gold drilling in 1,730 tightly spaced holes, the project has indicated resources of 865,000 ounces of gold from 49.55 million tonnes grading 0.54 gram gold per tonne, and inferred resources of 274,000 ounces of gold from 16.44 million tonnes at an average grade of 0.52 gram gold. The resource was based on a total of 153,000 metres of drilling and used a cut-off grade of 0.25 gram gold.
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