Liberty Gold Corp. Acquires Alaska-Based Moneyrock Gold Project Property

PHOENIX, July 15, 2011 /PRNewswire/ -- Liberty Gold Corp. (OTCBB: LBGO; "Liberty Gold" and/or "the Company") is pleased to announce that on April 5, 2011, the Company acquired a 60% interest in the 2,560-acre Moneyrock Property gold project, located 80 miles southeast of Fairbanks, Alaska. The Moneyrock project is surrounded by major gold projects and production, including the Pogo mine, which produced 389,808 troy ounces of gold in 2009,[1] Kinross Gold's Fort Knox mine, which is currently producing over $1 million of gold equivalent per day,[2] and the nearby prolific Tintina Gold Belt.[3] (See below for further details on nearby production and deposits.)

Situated in east-central Alaska's Goodpaster Mining District, Liberty Gold's Moneyrock Property project consists of three separate, partially-contiguous blocks:  the Indian claims (32 state claims; 2 sq mi), the Aurora claims (4 MTRSC state claims; 1 sq mi), and the Rainbow claims (4 MTRSC state claims; 1 sq mi).

According to a report on Liberty Gold's holdings (Carl Schaefer, CPG, Feb. 2006), the properties control mineral rights in a highly favorable location, with prospective geology and geophysical signatures similar to the 5.6 million ounce Pogo deposit located only 2.5 miles to the east. Work to date on the Moneyrock Property claim blocks has been sporadic, leaving a large area of under-evaluated ground worthy of immediate attention. At the same time, exploration findings include quartz veins with disseminated arsenopyrite found in float. These veins contain up to 2.4 grams per ton (g/t) gold with high arsenic (>10,000ppm) and anomalous bismuth (27ppm) indicating close proximity to an intrusive-hydrothermal source, warranting a systematic follow-up program of exploration. Other findings higher up include several rock samples with anomalous gold (~150ppb), arsenic, and bismuth. Soil samples collected in this area are also anomalous in gold (25-50ppb) and arsenic.[4]

"We're very encouraged to have acquired interest in a large gold project, with promising preliminary exploration findings, and surrounded by world class gold deposits, exploration, and established mining and production," said Lynn Harrison, Liberty Gold's President and CEO. "We're also fortunate to have the financing needed at this point to determine the best course of action for executing further exploration on the Moneyrock Property."

More details on the Company's Moneyrock Property exploration program will be released as they become available.

NEIGHBORING PRODUCTION & DEPOSITS

The producing Pogo mine, 2.5 miles to the east of Liberty Gold's Moneyrock Property, was originally a ~$347 million joint venture[5] between Sumitomo Metal Mining Co., Ltd./Sumitomo Corporation and NYSE listed Teck Resources Ltd. (www.teck.com). In July 2009, Sumitomo acquired Teck's 40% interest in the mine for $245 million plus working capital (Sumitomo Metal Mining: 85%; Sumitomo Corp: 15%).[6] As of early 2000, the mine represented a resource of 5.6 million ounces of gold grading 0.525 oz/ton.[7] In 2009, the mine was processing 2,550 tons of ore per day for a total of over 930,000 tons for the year. Projected gold production that year was exceeded by 9%, with overall production of 389,808 ounces gold.[8]

The Moneyrock Property is also adjacent to the LMS project, which is one of several Alaska-based gold projects owned by International Tower Hill Mines, including the 9.3 million ounce Livengood gold project to the north of Liberty Gold. NYSE listed AngloGold Ashanti Ltd. (www.anglogold.co.za) originally discovered the LMS project in 2004 through regional stream silt and follow-up soil geochemistry. A 3200 meter drilling program in 2005 led to the encouraging discovery of broad stockwork and narrower high-grade zones, with concentrations as high as 49.30 ppm gold across 1.53 meters.[9]

Also to the north is the Fairbanks Mining District, one of Alaska's largest gold producing areas, with roughly 12.3 million ounces gold produced as of 2006.[10] The district is home to NYSE listed Kinross Gold's (www.kinross.com) Fort Knox mine, which is currently producing over $1 million of gold equivalent per day while representing 3.7 million ounces of proven and probable gold reserves as of 2009.[11] Meanwhile, the nearby Tintina Gold Belt has produced nearly 30 million ounces of gold to date while representing known gold resources of nearly 40 million ounces.[12]

FOR MORE INFORMATION

To learn more about the Moneyrock Property gold project, and to read more about the Company and its latest news, visit Liberty Gold's website at www.libertygoldcorp.com.

ABOUT LIBERTY GOLD CORP.

Liberty Gold Corp. is a publicly traded (OTCBB: LBGO.OB) gold and precious metals exploration company focused on emerging as an industry leader while effectively growing America's reserves of gold and silver. Headquartered in Phoenix, Arizona, Liberty Gold is committed to the responsible exploration and production of the nation's rich precious metals resources, as well as the proven resources of US-friendly nations. The Company's stable of major gold and silver projects is well established, and thanks to an active approach to property acquisitions, Liberty Gold's portfolio of significant assets continues to grow. For more information on the Company and its activities, visit Liberty Gold's website at www.libertygoldcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS,

Liberty Gold Corp.
Lynn Harrison, President and CEO

2415 East Camelback Road
Suite 700
Phoenix, AZ
85016

Investor Relations:
Toll Free: 1-800-961-5388
E-mail: [email protected]
OTCBB: LBGO.OB

This press release includes certain statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based on Liberty Gold Corp.'s current expectations and projections about future events, which are based on currently available information. The forward-looking statements in this press release may also include statements relating to Liberty Gold Corp.'s anticipated financial performance, new developments, business prospects, strategies and similar matters. Liberty Gold Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

Sources:
1 State of Alaska website, June 21, 2010
2 Kinross Gold website, June 21, 2010
3 Alaska Business Monthly, Nov. 1, 1998
4 Carl Schaefer, CPG report on Money Rock project, Feb. 2006
5 Teck Resources Limited website, June 21, 2010
6 Sumitomo Corporation website, June 21, 2010
7 Copper Ridge Explorations Inc. website, Aug. 2, 2010
8 State of Alaska website, June 21, 2010
9 International Tower Hill Mines website, June 21, 2010
10 Alaska's Mineral Industry 2008. Alaska Division of Geologic & Geophysical Surveys.
11 Kinross Gold website, June 21, 2010
12 Alaska Business Monthly, Nov. 1, 1998

SOURCE Liberty Gold Corp.