Liberty Star Uranium and Metals Corp (LBSR)

[leifsmith]

From LBSR management (posted elsewhere today):

Re: Hay Mountain Funding
in response to Hay Mountain Funding by krm@0723
posted on Jul 30, 15 10:14AM


Dear KRM,

Thank you for your inquiry. The following response has been provided by management.

You are correct in assuming that the number of proposed targets went up between May, 2014 when we announced the $5 million 1st year for Phase 1 drilling and October, when the $9 million Phase 1 program was discussed in NR 189. While we did not specifically say how many targets we had, by October 2014 the count had nearly doubled to 51 primary or “mother” holes over several new targets. These additional holes were still to be a part of Phase 1, year one, so naturally costs to expand the Phase 1 program increased substantially.

As financing allows we continue to remain focused on Hay Mountain, but the priority of the targets may change to an emphasis on a shallow drilling and development program. We announced such a possibility as early as May, 2014:

“The 3D magnetic data suggest the upper part of the skarn bodies lie 30 to 90 meters (approx. 100 to 300 feet) below dirt cover. Their magnetic signature suggests the upper 30 to 90 meters or more is oxidized and copper would be in oxide form that would allow shallow open pit mining, heap leaching solvent extraction and electrowinning (OPHLSXEW) to produce 99.99% wire grade copper as seen at the new Safford, Arizona mine and others.” (NR 178)

According to CEO/Chief Geologist Jim Briscoe: “Other in-situ leaching projects are moving forward in Arizona at Excelsior’s Gunnison Project and at Florence Copper. [See “Mining Explained” webpage]

These in –situ recovery programs have taken on an added importance over the last year as explorers see them as a quick path to production to entice financial support from increasingly tight capital markets. We’ve certainly taken notice of this situation and are working a multi-faceted approach to securing funding to get a phased drilling plan at Hay Mountain underway.”

Regards,

AGORACOM