TUCSON, Ariz.�(BUSINESS WIRE)�Liberty Star Uranium & Metals Corp. (�Liberty Star� or the �Company�) (OTCQB: LBSR) is providing an update on its plans to finance the Phase 1 exploration drilling program on its premier property, the Hay Mountain Project for porphyry copper, gold, moly and other metals in Cochise County, southeast Arizona. The Phase 1 financing requires an expenditure of USD $6.5 million to drill up to 50 vertical �mother� holes (to a depth of up to 5000 feet) and up to 8 �daughter� holes per mother hole, depending on what is encountered (News Release 189). Another 31 holes on our Federal lode mining claims adjacent to the Arizona State Mineral Exploration Permits (MEPs) have subsequently been located, bringing the total number of planned, pre-positioned, permitted holes on the grid to 81. The Company is pursuing permitting on the entire grid simultaneously, allowing movement to almost any location within the geochemical, geophysical and geologic anomalies depending on results of surrounding holes, as soon as that may be indicated by results of the previously drilled holes. The Company may not drill all 81 holes during Phase 1, but permitting the entire grid at once is more efficient in terms of time and costs given the lengthy permitting timeline under state and federal regulation. This would allow immediate continuation of Phase 2 drilling, with no time lag.
Phase 2 drilling could continue for up to an additional 3 or more years with multiple drills. Discovery of thin exposures of silicified and carbonate veined rock, suggests that mineralization could be located at less depth than was previously suggested by old geologic maps. This, combined with the geochemistry and ZTEM geophysics, suggests a shallower top of the mineral zone, and mineralization going to significant depth. In phase 2 and beyond planning could be for an open pit and a continuous deep underground skarn (altered limestone) mineral body.
The financing proposal is offered to foreign and domestic entities that have or might express an interest in the project as a joint venture (JV) arrangement:
1. The JV would be between partner and The Hay Mountain Project owned by Liberty Star, and would be managed by Liberty Star
2. Partner would provide capital of $6.5 million for the Phase 1 drilling program and have an option to contribute $65 million for the second phase of drilling. Investors would also have the right of first refusal to contribute addition funds for the final permitting, design, construction and development of a mine(s) at Hay Mountain.
3. Liberty Star is not contemplating an arrangement exchanging stock to capitalize Phase 1 exploration drilling or subsequently Phase 2, and later phases for permitting, design and construction, which would be dilutive, but instead a Joint Venture, as is common in the industry.
The Company has received and anticipates receiving additional Non-Disclosure Agreements (NDAs) from potential funders introduced by naseba/Naru Capital and other entities, foreign and domestic. These NDAs allow Liberty Star to disclose confidential scientific data to potential funders as part of the potential funders� due diligence programs.
States Liberty Star�s CEO/Chief Geologist James A. Briscoe: �The value of the Hay Mountain Project may be greatly enhanced with the discovery of factors that may indicate mineralization near the surface in addition to a continuation of a skarn mineral body to great depth which would be mined by underground methods. We have completed surface studies, and have scheduled due diligence visits to the site. We have received word from the Arizona State Land Department (ASLD) that our Plan of Operation with archaeology survey should be completed in 1 to 3 months, entirely dependent on their schedule. In effect, we are ready to get the diamond core drilling started. While I wish the process of financing Phase 1 drilling at Hay Mountain would quicken its pace, I am confident that the scientific data and the attractive JV proposal we have put forth will net us a suitable partner in due course.�
�James A. Briscoe� James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.
View Liberty Star�s �Introduction to Hay Mountain Presentation�