Liberty Star Uranium & Metals Corp. (OTCQB:LBSR), a metal mining company based in Tucson, Arizona, announced on January 22, 2025, significant channel sampling results from its Red Rock Canyon Gold Project, part of the Hay Mountain Project in southeast Arizona. The findings suggest the presence of commercially viable metals within the region's well-known porphyry copper-gold-moly geological structures.
Recent channel sampling at Red Rock Canyon revealed bonanza grades of gold, with one sample yielding 107.5 grams per ton (g/t) and another at 60.0 g/t. These results extend the known high-grade zone by an additional 100 feet and identify other gold-bearing structures.
While these results are promising, InvestingPro data shows the company faces financial challenges with a current ratio of 0.02 and negative EBITDA of $2.22 million in the last twelve months. The company's GIS and 3D modeling have mapped the main zone and related structures, indicating potential for further exploration.
Historically, the area's structures were believed to be feeder zones to more extensive gold deposits within sedimentary strata. However, channel sampling alone cannot fully assess the potential of these flat-lying gold enrichments, which will require drilling for proper evaluation.
Previous drilling campaigns from the late 1980s and early 1990s have already confirmed the existence of gold-enriched zones within the site's geological formations. The recent sampling not only lengthened the high-grade zone but also uncovered six additional lenses of jasperoid with gold concentrations over 0.5 g/t across widths greater than two feet.
Chief Geologist Jim Bryce commented on the historical and current findings, emphasizing the importance of both the grade and potential tonnage of the gold deposits. Future drilling efforts will aim to delineate the high-grade zone and assess the bulk tonnage potential of the surrounding area.
In other recent news, Liberty Star Uranium & Metals Corp. has secured significant funding through various means, enabling it to bolster its operational and exploration activities. The company received executive advances totaling $153,931 from its CFO and Interim CEO, Patricia Madaris, Chairman of the Board, Pete O’Heeron, and Field Operations Manager & Geotech, Jay Crawford.
Additionally, Liberty Star entered into a financing agreement with 1800 Diagonal Lending LLC, securing a $67,200 unsecured bridge loan. This move provides immediate capital, potentially used for various corporate purposes. The company also secured a $97,200 unsecured promissory note with 1800 Diagonal Lending LLC, carrying an interest rate of 10%, providing additional financial support.
Furthermore, Liberty Star reported the discovery of high-grade gold at its Red Rock Canyon Gold Project in southeast Arizona. This development reflects the company's progress in exploration activities. Lastly, Liberty Star announced the addition of Gerardo King, a finance expert with 25 years of experience, to its Board of Directors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.