Regional geology

The TV Tower property is located in the south-central portion of the Biga Peninsula in Western Turkey, a lithologically and structurally complex region with a long history of industrial mineral (clay, quartz, coal, dimension stone), gold and base metal mining. 

The basement rocks of the Biga Peninsula consist of Paleozoic metamorphic rocks and Mesozoic accretionary mélange consisting of eclogitic, clastic and carbonate rocks.  Intrusive rocks ranging from granite to quartz diorite cut these basement rocks, which are in turn overlain by calc-alkaline and alkaline Oligocene-Miocene volcanic and related sedimentary rocks ranging in age from 42-23 Ma.  The volcanic suite includes andesite, latite, dacite, rhyodacite flow dome facies and volcaniclastic sequences (including ignimbrites), and is the primary host for epithermal gold and silver mineralization within the Biga Peninsula.   This sequence is intruded by quartz diorite to quartz monzonite bodies, giving rise to associated Cu-Au porphyry and skarn mineralization.

Structural geology
The structural geology of the Biga Peninsula is complex. One of the main complexities arises from the fact that the region is a transtensional zone subject to active dextral strike-slip faulting and N–S extension. The active faults in the region are oriented NW-SE, NE-SW and E-W.

The most prominent faults are a number of NE–SW-trending, dextral strike-slip fault systems that represent branches of the North Anatolian Fault Zone (e.g., Yenice-Gönen and Etili faults). The second group of faults comprise E–W-trending normal faults. They commonly occur along the northern margin of the Gulf of Edremit and along the southern margin of Lake Manyas.

NE–SW-trending faults controlled both sedimentation and volcanic activity during the Oligocene–Early Miocene period, when the lower volcanic association and coeval sediments were deposited. Late Miocene Ezine alkaline basalts are common along E–W-trending normal faults, thus suggesting a possible feeder relationship.

All post-basement volcano-sedimentary sequences show a clear tilt to the NW, N or NE by up to 35 degrees, which is more pronounced in the vicinity of major structures. Tilting of the rocks could be due to movement related to the North Anatolian Fault System.

Local Geology
Lithology:
The geology at TV Tower comprises Cretaceous-aged metamorphic basement rocks on the western and eastern edges of the property and Eocene sedimentary rocks over the rest of the property.   The latter are intruded by Eocene - Miocene intrusive rocks in the southern portion of the property, and overlain by dominantly Miocene calc-alkaline volcanic rocks. The volcanic rocks are dominantly comprised of andesitic flows, breccias and subvolcanic intrusive rocks at lower elevations, while rocks at higher elevations largely comprise dacitic ash and lapilli tuff. All rock types are variably altered, brecciated and mineralized, and display a range of intensities of brittle deformation.

Structure:
The TV Tower area is highly influenced by structures which relate to or which are part of the North Anatolian Fault System. The area is traversed by a large number of WNW-ENE-trending, steeply south-dipping normal faults, parallel to a regional-scale joint pattern.  NE-trending steep faults have also been noted.  A moderately north-dipping fault separates the andesitic sequence from the dacite tuff sequence at KCD.  North-trending steep faults have been noted in several locations, and may play a role in the distribution of mineralization at KCD.

Alteration:
Alteration at TV Tower is typical of high sulphidation gold and porphyry copper gold systems.  In the eastern half of the property, ridges and peaks are underlain by massive to vuggy quartz “ledges” representing silicification along more permeable volcanilithic strata, alternating with argillic and advanced argillic altered volcanic rocks.  Clay alteration includes kaolinite, dickite, alunite, pyrophyllite, and illite. Disseminated pyrite or related oxides (limonite, goethite, hematite etc.) are found throughout the area.  Alteration in the western portion of the property appears to represent deeper levels of the mineralized system, with fewer quartz ledges and areas of sericite alteration possibly transitional into a porphyry environment.

Breccias:
Breccias are an important ore-host at TV Tower. They vary from breccias related to primary volcanic processes, to hydrothermal activity and structural processes, with a variety of observed overprinting relationships. 

Mineralization
To date, 12 targets have been defined by a combination of geophysical, geochemical and geological methods. Nine targets are epithermal (Kücükdag, Kayalı, Karaayı, Sarp, Nacak epithermal, Kestancilik, Kartaldag West, Columbaz and Tesbihcukuru) and two are porphyry-related (Nacak porphyry and Kiraz). Gumusluk is a listwanite target.

The KCD target is located in the northeastern part of the TV Tower Property.  The area is underlain by (from bottom to top) andesite breccia and welded tuff; massive lapilli-ash and ash tuff grading laterally to welded tuff; reworked tuff, mudstone and siltstone comprising a fluvial-lacustrine basin sequence; lapilli-ash tuff; andesite breccia and flows; and ash and lapilli-ash tuff.  The lower sequence of andesite breccia and welded tuff are separated from the other rock units by a moderate-angle fault.  Gold mineralization at KCD is largely hosted in the lower lapilli-ash tuff sequence.  Silver mineralization is largely hosted in the fluvial-lacustrine sedimentary rocks and overlying lapilli-ash tuff and volcanic breccia.  A recently recognized upper zone of oxidized gold mineralization is hosted in the upper lapilli-ash tuff sequence.

Initial drilling at Kücükdag returned some of the best gold intercepts reported to date in the district, including 57.8 metres of 9.51 g/t gold within a broader interval of 136.2 metres of 4.28 g/t gold in drill hole KCD-02.  The high-grade gold intercepts were returned from a hydrothermally overprinted, structurally controlled breccia zone located within the lower lapilli-ash tuff unit.  Wall rocks and clasts are strongly silicified and pyritized.  Breccia cement includes enargite, pyrite, dickite, alunite, quartz and barite, representing numerous pulses of hydrothermal fluids.  Gold is most closely related to pyrite and enargite.  Drilling in 2012 and 2013 has identified other pipe-like breccia bodies and other styles of gold mineralization, including sheeted vein swarms and structurally and stratigraphically controlled zones of vuggy quartz.  The gold zone as currently defined by drilling measures approximately 300 x 400 metres.  The zone of silver mineralization extends over an area measuring approximately 600 x 650 metres and comprises a sheet-like body, the dimensions of which are controlled by stratigraphy.  Mineralization consists of very fine-grained pyrite and marcasite and quartz gangue. 

A few kms to the south of Kücükdag, the Sarp target occupies a prominent ridge.  This target is characterized by extensive massive to vuggy quartz ledges underlain by argillic to advanced argillic-altered and pyritized rocks.   At lower elevations to the east, a swarm of low sulphidation epithermal Au and Ag-bearing quartz veins has been identified (Columbaz target). 

The Kayalı target includes a number of stacked vuggy quartz and massive quartz ledges and strong advanced argillic to argillic alteration over a 2 km x 1.5 km area.  Quartz ledges appear to have been developed in lapilli and ash tuff layers. Gold mineralization is hosted mainly within at least two WNW-ESE trending ribs zone with quartz and hematite-cemented crackle breccias.  Rock channel samples returned values in the range of 1 to ~10 g/t Au. Drilling to date has returned up to 114.5 metres averaging 0.87 g/t gold. Oxidized, gold-mineralized zones are locally underlain by zones of supergene and hypogene copper mineralization (chalcocite and covellite, respectively) with individual assay intervals up to 6% copper.

Drilling at Karaayı by previous operators has intersected near-surface, oxidized, high-sulphidation style gold mineralization, which is on strike to the west of the known oxidized gold mineralized zone at Kayalı. In addition, exploration has identified the presence of supergene copper and porphyry style copper-gold mineralization on the Karaayı property. 

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.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey", effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Liberty Gold's Issuer Profile on SEDAR (www.sedar.com).