AGORACOM Small-cap Investor Relations Blog

TUCSON, Ariz.–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 5,000 feet) and up to eight “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 three 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 one to three 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”

Forward-Looking Statements

Statements in this news release that are not historical are forward-looking statements. Forward-looking statements in this news release include all our planned drilling program and our planned route to access partners or funding sources. Factors which may delay or prevent these forward-looking statements from being realized include: the failure of our proposals to be accepted; we may not attract any partners or funding sources; we may not be able to raise sufficient funds to complete our intended exploration, keep our properties or carry on operations; and we may encounter an inability to continue exploration due to weather, logistical problems, labor or equipment problems or hazards even if funds are available. Even if we find a partner, we may not be able to reach agreement or carry out the development program as contemplated. Despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures in the Company’s recent 10-K and the Company’s other periodic reports filed from time to time with the Securities and Exchange Commission.

Contacts

Agoracom Investor Relations
[email protected]
http://agoracom.com/ir/libertystar
or
Liberty Star Uranium & Metals Corp.
Tracy Myers, 520-425-1433
Investor Relations
[email protected]
Follow Liberty Star Uranium & Metals Corp. on Facebook , LinkedIn & Twitter@LibertyStarLBSR

TUCSON, Ariz. — Liberty Star Uranium & Metals Corp. (“Liberty Star” or the “Company”)(OTCQB: LBSR) is pleased to announce that it has submitted an Exploration Plan of Operation (the “Plan” or the “EPO”), for the State Land component covering the prime anomaly of the Hay Mountain Project, to the Natural Resources Division – Minerals Section of the Arizona State Land Department (“ASLD”), as of today’s date. An approved EPO is required by the State prior to initiating exploration activities on Arizona State Trust land (the Company’s Mineral Exploration Permits or MEPs). Plan evaluation and approval may require 30 to 60 days: the approved EPO remains effective for one year from date of approval and the Company may request extensions if required. Liberty Star has proposed a Period of Operation commencing September 29, 2014. The innovative drilling program proposed by LBSR could begin after that date if the EPO is effective and adequate funding is obtained.

“…the type and extent of the operation to be performed. Include the estimated area of disturbance and provide detailed information for any earth moving or site clearance operations.”

Among the ASLD requirements for application of an EPO is a statement of “Scope of Operation” that describes “…the type and extent of the operation to be performed. Include the estimated area of disturbance and provide detailed information for any earth moving or site clearance operations.” Liberty Star has submitted the following:

“1. Core Drilling and daughter hole drilling for mineral deposits at depths of up to 5,360 feet (1,643 m) and using deviated drilling-directional drilling herein described as daughter holes to drill holes out from the mother holes which will give us information at up to 200 meters out from the mother hole. This will decrease our surface drill sites to 41 drill sites, a decrease of 89% by drilling from the central mother hole.

“2. We will be using a diamond core drill – with rubber tracks that put less pressure on the ground surface (4.8 pounds per square inch) than a human would in walking over the drill site. Rather than trucking water off-road to the drill site with very heavy (10 to 16 tons of water per truck load) we will pipe water to the drill sites as needed for drilling using unburied UV protected flexible polyethylene pipe which will not disturb the surface or vegetation to supply a plastic water tank (2,000 gal) at the drill site.

“3. We will use a very recently developed Solids Recovery Unit (SRU) which uses a centrifuge to clean the drill fluid before pumping it down into the hole again. This reduces the foot print of the drill site and negates the use of a traditional mud sump pit. Drill cuttings are automatically bagged and will be disposed in a land fill after drying.

“4. Personnel will be transported in a rubber tracked side-by-side [a 4WHD mini truck from Polaris] with 4 passenger capacity along with space for tools and consumables. This also has an impact of less than a human foot. Normal pickup trucks will only traverse main roads, only pickup trucks equipped with rubber tracks will travel off main dirt road.”

All vehicles used in the drilling process will be mounted on similar low weight distribution rubber tracks. No roads will be constructed, nor surface disturbance made. Routes to the drill sites will be by rubber tracked vehicle paths and there will be no surface disturbance of soil or vegetation.

States Liberty Star CEO/Chief Geologist Jim Briscoe: “The Scope of Operations statement we have submitted to the ASLD exemplifies our commitment to being excellent stewards of State Trust lands. The Exploration Plan is also financially sound because of the efficiencies we’ve built into the plan including those described above, which we believe should actually lower the cost of operations. With naseba and others, we have laid the groundwork for financing, and are in preliminary discussions with more than 12 entities in various countries where we have made presentations. We need that financing in place to proceed with Phase 1 drilling.”

“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.

Forward-Looking Statements

Statements in this news release that are not historical are forward-looking statements. Forward-looking statements in this news release include our expectation that we will receive approval of our EPO and the timing of that approval, the anticipated timing of the EPO after it commences and the availability of extensions if they are required, our ability to raise funds to pay for the Phase I drilling and our belief that the EPO is financially sound and that it should actually lower the cost of operations. Factors which may delay or prevent these forward-looking statements from being realized include receipt and timing of EPO approval and delays in financing, the possibility that we may not be able to raise sufficient funds to complete our intended exploration or carry on operations and the timing of that financing; and the possibility that we may be prevented from drilling due to weather, logistical problems or other field hazards. Despite encouraging results, there may be no commercial grades of mineralization on our properties. Readers should refer to the risk disclosures in our recent 10-K and our other periodic reports filed from time to time with the Securities and Exchange Commission.

Follow Liberty Star Uranium & Metals Corp. on Facebook , LinkedIn & Twitter @LibertyStarLBSR

Contacts

Agoracom Investor Relations
[email protected]
http://agoracom.com/ir/libertystar
or
Liberty Star Uranium & Metals Corp.
Tracy Myers, 520-425-1433
Investor Relations
[email protected]