Liberty Star Stakes Four Past Producing Uranium Mines -- Hack Canyon, Hack 1, Hack 2 and Hack 3 at the North Pipes Super Project, Arizona
Posted on: Tuesday, 22 August 2006, 09:00 CDT
Liberty Star Gold Corp. (the "Company"), (OTCBB: LBTS) is pleased to announce that it has acquired by staking the previously productive Hack Canyon, Hack #1, Hack #2 and Hack #3 uranium mine properties at the North Pipes Super Project, Mojave County Arizona. A total production of about 10 million pounds of uranium oxide was made from these mines between 1980 and 1988, at a grade of about 0.7% uranium oxide. The mines were discovered, owned and operated by Energy Fuels Nuclear Corp. (EFN) between 1980 and approximately 1990. After that time, because of the precipitous drop in the uranium price due to the Three Mile Island accident and the expiration of their high price sales contracts, EFN closed and reclaimed the mines, removing the mining equipment and hoisting facilities and refilling the shafts and workings and recontouring the surface. Subsequently, EFN ceased business and the mining claims reverted to the Federal government -- U.S. Bureau of Land Management. The Company has staked mining claims over the mine areas and these are now owned 100% by the Company without royalty or other obligation except for a small yearly rental payment due the Federal government.
To the best of management's knowledge, the Hack mines ceased production because of the low price of uranium at the time rather than the exhaustion of uranium mineralization. We have been advised by a knowledgeable consultant who worked on the Hack mines that there remains a substantial body of uranium mineralization that may be potentially mined at current prices. The amount of potential mineralization is not quantified. However, the cost of acquisition of the Hack mines was very low -- on the order of a few thousand dollars. Further, the Company has partially defined a geologic hypothesis that suggests there may be further significant uranium at greater depth within and below the breccia pipes and the Hack mines are a good location for a future test of this hypothesis. The Company has no detailed records of the past mining operations of the Hack mines but believes they may eventually be found. Modern geophysical surveying is planned by the company as the next step in further evaluation.
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. It is important to note that the Company's actual outcomes may differ materially from those statements contained in this press release. Forward-looking statements in this news release include that there remains a substantial body of uranium mineralization that may be potentially mined at current prices; that there may be further significant uranium at greater depth within and below the breccia pipes and the Hack mines are a good location for a future test of this hypothesis; that the detailed records of the past mining operations of the Hack mines may eventually be found; and that modern geophysical surveying is planned by the company as the next step in further evaluation. Factors which may delay or prevent these forward-looking statements from being realized include misinterpretation of data; that we may not be able to raise sufficient funds to complete our intended exploration; that our application to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data can be done accurately and at depth; that results which we have found or found by others in the past in any particular location are not necessarily indicative of larger areas of our property; that all commercially mineable ore may have already been mined; 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.
Contact: James A. Briscoe +1 (520) 731-8786 LIBERTY STAR GOLD CORP. 2766 N. Country Club Road Tucson, Arizona 85716-2204 TEL: (520) 731-8786 FAX: (520) 844-1118 http://www.libertystargold.com/
SOURCE: Liberty Star Gold Corp.
Source: MARKET WIRE
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