Liberty Star and Mayo Gold Joint Venture on Sonora Gold Propertyadmin
Liberty Star Uranium & Metals Corp. (the “Company”)(OTCBB:LBSU) is pleased to announce that the CEO/President of the Company, James A. Briscoe, and the CEO/President of Mayo Gold Explorations Ltd. (“Mayo Gold”), Pedro Villagran Garcia, have signed a Letter of Intent to joint venture the El Papago Project (“El Papago”) in Sonora, Mexico and the Tombstone Porphyry Center (“Tombstone”) in southern Arizona. El Papago is currently owned by Mayo Gold and Tombstone is currently owned by Liberty Star (NR 74). According to the agreement the Company will gain a 35% ownership in El Papago and Mayo Gold will provide funding and work to earn a 50% interest in Tombstone.
A proposal on the operation of the El Papago accompanies the Letter of Intent. In summary:
* El Papago lays on a 12 square mile alteration zone about 10 miles southwest of the million ounce Santa Gertrudis deposit in northern Sonora, about 70 km from the US border * El Papago has historical inferred resource of gold in the 300 thousand ounce range with silver * NI 43 101 Technical Report compiled in May, 2007 recommends a 3 million dollar exploration program and confirms mineralization is like that at Santa Gertrudis
* Pre-existing data allows for a relatively short timeline from mineral exploration to mining a resource, if sufficient resources are proven.
Both parties agree to prepare a more formal agreement and one in a format in Spanish that can be registered under Mexican Mining Law with the Register de Mines of the Direccion General de Minas. If funding does not become available within 30 days, the agreement can be dissolved by the Company or Mayo Gold without penalty.
ON BEHALF OF THE BOARD OF DIRECTORS
James A. Briscoe,
About Liberty Star’s Mineral Exploration Projects
Liberty Star Uranium & Metals Corp. is a mineral exploration company currently engaged in an ongoing drilling program for the discovery of uranium ore deposits on the Arizona Strip region of the Colorado Plateau (North Pipes Super Project). Liberty Star also maintains exploration projects in Alaska for copper, gold, silver and moly, in Nevada for gold and silver, and southern Arizona for porphyry copper and other metals. Information on these can be found at Liberty Star’s extensive web site http://www.libertystaruranium.com/.
About Mayo Gold Explorations Ltd
“Mayo Gold is an international exploration mining company operated from Vancouver, B.C. and Hermosillo, Mexico. Currently Mayo Gold has a main project search based in Mexico but also looking for exploration projects in Chile, Peru, Brazil, Argentina, Colombia, Bolivia and Venezuela. Our objective is to explore for precious metals in these countries, primarily for gold and silver.” http://www.mayogold.com/
SAFE HARBOR STATEMENT
Statements in this news release that are not historical are forward looking statements. Forward looking statements in this news release include that we will enter an agreement to acquire an interest in the El Papago project; that Mayo Gold will pay the costs on the Tombstone property; and that there would be a relatively short timeline from exploration to mining. These statements are subject to considerable risk in that we may not agree to terms and/or the properties may not pass our or Mayo Gold’s due diligence. Further, even if we do agree to terms, there is no assurance that any commercial quantities of minerals can be exploited on the properties. If there are commercial quantities of resources, there are many risks which may delay or prevent mining, including environmental issues and permits, financing, obtaining labor, and many other risks. Lastly, mineral resources on properties in the area of our projects are no guarantee or even an indication of mineralization on our properties.
Readers should refer to the risk disclosures outlined in the Company’s most recent 10-KSB and the Company’s other periodic reports filed from time to time with the Securities and Exchange Commission.
Liberty Star Uranium & Metals Corp. Tracy Myers, Investor Relations 520-731-8786 info@LibertyStarUranium.com
Source: Liberty Star Uranium & Metals Corp.