Message #13 From:
NewsBot Date: December 19, 2006 05:07:00 AM
LBTS News Liberty Star - XState Resources Ltd. - Elle Uranium Joint Venture is Funded and Officially Starts Dec. 15, 2006
TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Gold Corp (the “Company”),
(OTCBB:LBTS) is pleased to announce that the Elle Joint Venture between
XState Resources Limited (ASX:XST) (previously OCR Minerals) has
commenced as of December 15, 2006 with the transfer of $2,900,000 into
the US Joint Venture account. This is in addition to the sum of $100,000
paid to the Company as a non-refundable deposit from XState on the
initiation of a letter agreement on July 17, 2006.
The funds will be used by the joint venture to execute an exploration
program on three breccia pipes for uranium and other metal
mineralization, as indicated by surface geology, geochemistry and
geophysics. The target pipes are closely adjacent to a previously tested
pipe held by a third party which has strongly anomalous mineralization.
These breccia pipes are part of the large uranium bearing breccia pipe
terrain which occurs on the Arizona Strip lying just south of the Utah
border. Eight mines were brought into production during the late 1970s
and early 1980s on deposits discovered within the immediate area. These
uranium bearing pipes are the second highest grade uranium mineral
deposits in the world and the highest grade in the United States.
Previously mined mineralization in these pipes has graded about 0.6% to
0.7% uranium or about 12 to 14 pounds per ton. In addition to uranium
they are known to contain copper, zinc, silver, vanadium, cobalt,
nickel, molybdenum, gallium, germanium and other metals. Past producers
have recovered copper, silver and vanadium as by-products of uranium
mining. Advances in hydrometallurgical extraction techniques as well as
current high metal prices are important factors in the potential for
important metal byproducts or co-products of any defined uranium ore
bodies.
Each of the three target pipes will be drilled with a “mother”
reverse circulation air rotary hole designed to penetrate the center of
the geophysical anomaly which defines the pipe. Downhole electrical
geophysics will be used to identify additional mineralization within a
200 to 300 foot radius out from the rotary holes. Each rotary hole will
then be entered by an NQ size (2.2-inch diameter) diamond core drill
with which directional ”daughter”
holes will be drilled toward the mineral targets defined by the downhole
geophysics. The budget plans for three mother holes totaling 4,500 feet
of reverse circulation drilling and 48 daughter holes consisting of
32,160 feet of core drilling.
This program will be administered by the Company for the joint venture.
It is expected to cost less than half of standard drilling approaches
and the intention is to define resources in the three pipes to be tested.
XState has earned a 50% interest in the three breccia pipes by this cash
contribution. They have a right of first refusal on an additional
seventeen pipes within the twenty-two square mile Elle joint venture
Area-of-Mutual-Interest (AMI).
ON BEHALF OF THE BOARD OF DIRECTORS
“James A. Briscoe”
James A. Briscoe,
President/Director
SAFE HARBOR STATEMENT
Statements in this news release that are not historical are forward
looking statements. Forward looking statements in this news release
include that the program and use of funds will consist of 4,500 feet of
reverse circulation drilling and 32,160 feet of diamond drilling in
order to test three breccia pipes for uranium and other metal
mineralization; that copper, zinc silver, vanadium, cobalt, nickel,
molybdenum, gallium, germanium and other metals may be present; that
advances in hydrometallurgical extraction techniques as well as current
high metal prices are important factors in the potential for important
metal byproducts or co-products of any defined uranium ore bodies; that
the rotary holes will penetrate the center of each geophysical anomaly;
that down hole electrical geophysics will be used to identify additional
mineralization within a 200 to 300 foot radius out from the rotary
holes; that each rotary hole will then be entered by an NQ size (2.2
inch diameter) diamond core drill and directional diamond core holes
will be drilled toward the mineral targets defined by the in-hole
geophysics; that the budget plans for forty-eight diamond core holes
consisting of 32,160 feet of core drilling; and that it is expected to
cost less than half of standard drilling approaches.
It is important to note that the Company’s
actual outcomes may differ materially from those statements contained in
this press release. Factors which may delay or prevent these forward
looking statements from being realized include misinterpretation of
data; that we may not be able to get equipment or labor as we need it;
that we may not be able to raise sufficient funds to complete our
intended exploration; that we are unable to agree with our joint venture
partners as to the work to be performed; that our application to drill
may be denied; that weather, logistical problems or hazards may prevent
us from exploration; that equipment does not work as well as expected;
that analysis of data cannot be done accurately and at depth; that
results which we or others have found in any particular location are not
necessarily indicative of larger areas of our property; and that despite
encouraging data there may be no commercially exploitable mineralization
on our properties. Readers should refer to the risk disclosures outlined
in the Company’s most recent 10-KSB and the
Company’s other periodic reports filed from
time to time with the Securities and Exchange Commission.
