Liberty Gold began drilling at Kinsley Mountain in late 2011, with a 12,000 metre infill and step-out core and RC drill program, designed to verify, define and expand the mineralized zones identified by previous operators. In conjunction with drilling, a comprehensive regional effort to identify new targets was completed, including new staking to the north in a largely unexplored area. Through this work, new mineralized zones were intersected in drilling (Candland Canyon and Western Flank).  The Western Flank Zone has been expanded to cover an area measuring approximately 600 metres by 100 metres. Drill highlights from the 2012 program include:

  • 6.03 g/t gold over 13.7 metres in hole PK061, including
        o  15.18 g/t gold over 4.6 metres;
  • 5.48 g/t gold over 20.4 metres in hole PK014C, including
        o 16.43 g/t gold over 5.5 metres; and
  • 2.30 g/t gold over 19.8 metres in hole PK057.

A three-dimensional model of geology and mineralization was created in order to aid in the selection of new, high-grade drill targets. Surface soil and rock samples show anomalous pathfinder geochemistry and alteration extending seven kms to the north of the historic open pits, consistent with the presence of a large mineralized system.

The 2013 work program at Kinsley consisted of 20,000 metres of core and RC drilling, and resulted in a new high grade discovery model at the Western Flank target.

Drill highlights from the 2013 include:

  • 8.53 g/t gold (Au) over 36.6 metres in PK091CA, including
       o   29.4 g/t Au over 7.6 metres
  • 5.00 g/t Au over 7.6 metres and 4.71 g/t over 7.3 metres in PK096C  
  • 2.50 g/t Au over 24.4 metres in PK104C
  •  1.65 g/t Au over 24.4 metres in PK074  
  •  6.34 g/t Au over 5.9 metres in PK106C, including
     o   9.91 g/t Au over 3.4 metres

Liberty Gold conducted a 25,600-metre, $6.04-million drill program at Kinsley Mountain in 2014. Highlights include:

  • 6.85 g/t Au over 41.7 metres in PK127C, including
           o   16.3 g/t Au over 8.5 metres (oxide), and
           o   20.5 g/t Au over 3.6 metres (oxide)
  • 10.5 g/t Au over 42.7 metres in PK131C, including
           o  18.3 g/t Au over 22.9 metres;
  • 7.53 g/t Au over 53.3 metres in PK132C, including
           o   14.9 g/t Au over 22.9 metres, and
           o   4.67 g/t Au over 7.6 metres
  • 0.6 g/t Au over 30.0 metres in PK133C (step-out), including
           o  16.1 g/t Au over 16.5 metres;
  • 21.3 g/t Au over 29.0 metres in PK137C* (infill), including
    •  46.4 g/t Au over 4.9 metres (oxide), and
    •  32.7 g/t over 11.4 metres
  • 15.6 g/t Au over 38.7 metres in PK137CA (infill), including
           o  26.2 g/t Au over 21.9 metres;
  • 3.35 g/t Au over 41.1 metres in PK144, including
           o  5.11 g/t gold over 4.6 metres;

*PK 137C was lost in the mineralized zone due to poor ground conditions higher in the hole, and does not represent a complete intercept of the zone.  PK137CA was wedged off the same hole from above the mineralized zone using NQ tools and was completed through the mineralized zone in a location immediately adjacent to PK137C, effectively representing a twin of PK137C and a complete intercept of the mineralized zone.

Holes PK127C and PK126C are step-outs located approximately 30 metres east and 30 metres west, respectively, of PK91CA, drilled in 2013 (8.53 g/t Au over 36.6 metres).

The upper stratigraphic unit hosting the gold in the Western Flank zone (Candland Shale) rises to the surface 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot demonstrate a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t Au in grab samples. These features suggest that the Right Spot surface mineralization may result in a gold mineralized zone stretching more than one kilometre in length.  The underlying Secret Canyon Shale is mapped on surface another 0.5 km to the south of the Right Spot, and also hosts surface jasperoid bodies with Au up to 1.8 g/t in grab samples.

A new high-grade zone 150 metres northeast of the Wesern Flank Zone was discovered in 2015. Exploration drilling was focused on following up on the new discovery and testing a number of high-priority targets accross the property. The program was modified to expand and connect the new zone to the Western Flank and target the high-grade northwest trending structures in the historic mine trend.

2015 drill highlights include:

  • 2.34 g/t gold over 9.1 metres (Dunderberg shale host), AND

    • 3.46 g/t gold over 18.3 metres (Secret Canyon Shale host) in PK208 including

      • 13.7 g/t Au over  3.0 metres

  • 2.95 g/t Au over 13.7 metres (Secret Canyon Shale host) in PK210

In April 2016, a four-hole RC drill prgram targeting the area immediately below and southwest of the historic Main Pit commenced.  Results are pending.

For a table of 2011-2012 drill results, please click here.

For a table of 2013 drill results, please click here.

For a table of 2014 drill results, please click here.

For a table of 2015 drill results, please click here.

Kinsley Mountain is an early stage development project without any current resource estimates and there is no certainty that any such resource estimates will ever be established.

Moira Smith, Ph.D., P.Geo., VP Exploration & Geoscience, Liberty Gold, is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information contained herein is accurate.


Initial metallurgical test results at Kinsley demonstrate the amenability of high-grade mineralization from the Secret Canyon host rock at the Kinsley Mountain property to produce a high-grade concentrate amenable to flotation processing. Additional metallurgical results from the Dunderberg (Candland) Shale at the Kinsley Mountain demonstrate that Kinsley’s main host rocks can produce medium to high-grade concentrates with very good to excellent gold recoveries, and the potential of low capital cost options for possible mining and processing at Kinsley.

Initial geochemical analyses of mineralized intercepts, including characterization of carbon and sulfur, ICP analysis and determination of the solubility of gold in cyanide demonstrated that the concentration of gold relative to sulfur is high relative to other sediment-hosted, Carlin-style gold deposits. As well, petrographic work showed that pyrite, within which the gold is believed to be resident, is relatively crystalline, dense (non-porous) and that there is a very small quantity of sulfides that are <20 microns. These data and observations demonstrate potential for producing a high- grade flotation concentrate, which could then be evaluated for direct sale to commercial smelters or potentially to any one of several Nevada mine operators who can process refractory concentrates via roasting or autoclaving, for final recovery of the gold. 


Overall Au Recovery1(%)

Concentrate Grade (g/t)

Flotation Recovery (%)

Calculated Feed Grade (g/t)






















1Overall recovery is the total of the gold recovered into flotation concentrate plus gold leached from the final tails

Four samples representing a range of gold grades from 4.23 to 20.3 g/t gold and a range of cyanide solubility levels were subjected to rougher and scavenger flotation testing over a range of conditions including variations in grind size, followed by cyanidation of the flotation tails.  Combined concentrate recoveries ranged from a low of 76% to a high of 89.6%.  Combined with cyanidation of the flotation tails, the total recovery increased to 89.0% to 95.0%.  The concentrate grades ranged from a low of 98.6 g/t gold to a high of 312 g/t gold, with gold recovery to concentrate highest in the higher-grade and less oxidized samples.

Secret Canyon gold mineralization at Kinsley, unlike more typical Carlin-style deposits, is unique in several aspects:

  1. The sulfides at Secret Canyon are crystalline, dense (not porous) and the lack of sulfides <20 microns make them prime candidates for flotation.
  2. The total sulfide sulfur content of Secret Canyon material averages about 1.0%, which is low for a typical Nevada refractory resource, indicating that flotation concentration ratios can be high and consistently produce high grade concentrates.
  3. The ratio of gold, in grams/tonne - to sulfide sulfur, in percent (Ratio: Au/S) is very high, ranging from 7.8 to 19.2 for the four Master Composites.  Since refractory gold treatment facility capital and operating cost are most affected by sulfide sulfur content, the low sulfide sulfur feed grade and the high ratio of Au/S are very favourable indicators for:
    - Low capital cost facilities for on-site treatment,
    - Low relative operating cost for concentrate treatment whether processed on or off-site by other commercial entities.
  4. Concentrate grade ranged from 98.6 to 312 g/t gold.  At a US$1,200 gold price, the contained value of these concentrates range from $3,800 - $12,000 per tonne.  Therefore, cost for on-site processing or shipping and processing concentrate at a commercial smelter or a local Nevada refractory treatment facility would only represent a small portion of the overall concentrate value.

Additional metallurgical results designed to test the amenability of gold mineralization hosted in the Dunderberg (Candland) Shale, the primary host rock in the historical mining operation, were completed in 2015 using the same flowsheet developed for mineralization hosted in the Secret Canyon Shale.

Summary Highlights:


Overall Au Recovery (%)

Concentrate Grade (g/t)

Calculated Feed Grade (g/t)










The results indicate that the Dunderberg Shale material, like that from the Secret Canyon Shale, may be amenable to production of a concentrate and may be improved with further study of primary and regrind sizes and flowsheet refinements particular to the Dunderberg shale.

Regional and property geology

The Kinsley Property is located in eastern Nevada near the Utah border, in the eastern portion of the Basin and Range physiographic province.  The region is primarily underlain by carbonate and siliciclastic strata ranging from Late Proterozoic to Late Paleozoic in age, reflecting rifting and subsequent passive margin sedimentation with episodic shallowing over time.  Strata were thrust- imbricated, folded and metamorphosed during the Jurassic Elko Orogeny, during which felsic to intermediate plutonic rocks were emplaced.  The Tertiary is dominated by extensional tectonics, manifested as low-angle normal faulting, felsic volcanism and gold mineralization during the Early to middle Tertiary and high-angle, basin-and-range style normal faulting ranging from Miocene to Recent.

Sedimentary rocks on the Kinsley Property range primarily from Middle Cambrian to Late Ordovician in age, and reflect episodic shallowing of the continental shelf from shelf margin through middle shelf/sabkha environments.  Important units include the Upper Cambrian Lamb Dolomite, Candland Shale and Notch Peak Formation, and the Lower Ordovician Pogonip Group silty limestone and Eureka Quartzite.  By analogy with the Long Canyon area 75 km to the north, competent units such as the Lamb Dolomite and Eureka Quartzite might be expected to behave as structural and hydrologic buttresses for less competent and more favourable host rocks such as the Candland Shale and lower Pogonip Group.  The Candland Shale is the principal host for gold mineralization discovered to date on the Kinsley Property. 

Strata in the Kinsley Mountain area were ductily deformed during Mesozoic time, the extent to which has not been thoroughly evaluated.  During the Eocene, a northwest-trending wrench fault system was developed across the property.  This fault system provided the plumbing which introduced mineralizing fluids into the Candland Shale.  Mineralization is sediment-hosted in nature, and is believed to be of similar age (approximately 38 Ma) to mineralization in the Carlin Trend.   Detailed mapping in the pits suggests that mineralization may also be controlled by north- to northeast-striking structures, which may extend known gold mineralization to the north an unknown distance.  This possibility is being tested with the 2013 drilling program.

Surface and near-surface alteration includes decalcification and iron oxide alteration (primarily limonite, goethite and rare hematite).  Some scorodite is present locally, as well as structurally and stratigraphically controlled jasperoids lenses.  At depths below approximately 70 metres, sulphide mineralization is locally present, consisting of variably siliceous, decalcified and carbonaceous rock with disseminated, very fine-grained pyrite and arsenical pyrite.  All of the above alteration types contain gold as very fined-grained particles in the lattice of arsenical pyrite grains or oxidized equivalents. Highly geochemically anomalous, structurally controlled jasperoid bodies have been mapped and sampled up to 7 km north of the existing pits.

In September 2013, Liberty Gold obtained a key permit for Kinsley Mountain allowing the Company to ramp up drilling to test high-priority targets across the core group of claims. The approved Plan of Operations allows Liberty Gold up to 70 acres for exploration and development drilling on the core group of claims, including the Western Flank, Candland Canyon and extensions trending NNE and SW of the historic pits.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Liberty Gold, is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information contained herein is accurate.