I put companies on my Agoracom list of “Favorite Stock Hubs” because, for one reason or the other, I’m following them. However, at any one particular time, usually I’m not seriously considering investing in any of them.

Last Friday, I clicked on an advertisement for “Liberty Star Uranium & Metals Corp.” which appeared on the “Hub Home” page of our Agoracom Message Hub. Afterwards, I added “Liberty Star” to my list of “Favorite Stock Hubs.” This time my reason was different than usual. It was because of the education I got from reading about what kind of assets unsophisticated investors consider to be worth their hard-earned cash.

After reading parts of the Annual Report, for a moment, I didn’t know whether to laugh or cry. Because I stubbornly maintain a positive and calm outlook on life, I stopped myself from the choosing the “cry” option.

The truth is stranger than fiction. Compare the market capitalizations.
Fancamp = $7,740,000 Canadian = $7,005,000 USA
Liberty Star = $13,500,000 Canadian = $12,330,000 USA (Only listed OTC = LBSR)

Liberty Star trades at a 74.4% premium to Fancamp. Liberty Star’s trading volume, consistently, is also higher than Fancamp’s. Last week it was 7,770,000 shares. That was slightly below average. Once in a while, it will trade that much in one day.

The truth is stranger than fiction. Compare the assets.
Fancamp = You already know them or know most of them.
Liberty Star = Cash $72,262 USA (but the Book Value is Negative $1,131,524 USA)

Aside from the financials, as follows are the only other assets, Liberty Star’s three “Super Projects” and its one “Project” (which isn’t “Super”). There’s nothing else.

I took the following information directly from the Annual Report, filed 16 May 2014 with the Security Exchange Commission in the USA (SEC Form 10K). The bold type is my doing.

[#1] North Pipes Super Project (“North Pipes” and “NPSP”):
We plan to ascertain whether our North Pipes claims possess commercially viable deposits of uranium.

Our NPSP claims are undeveloped. There are neither open-pit nor underground mines, nor is there any mining plant or equipment located on the properties. There is no power supply to the properties. We have not found any mineral resources on any of our claims. ...

A survey was also completed by Geotech on an approximately six square area by VTEM helicopter borne electromagnetic survey along right angle crossing grid lines spaced 100 meters apart, which was performed by Geotech of Aurora, Ontario, Canada. Significant anomalies resulted from this survey. Preliminary drilling of one Liberty Star’s anomalies intersected strong breccia, alteration and pyrite mineralization. The holes did not penetrate down to the elevation where uranium mineralization would be expected, but are targets for future work. As of this date we have not developed any uranium resources. ...

In 2007 a drilling program was undertaken using both rotary drilling and core drilling. Rotary drilling was contracted by Boart Longyear. Diamond core drilling was completed by Redwall Drilling Inc., a former wholly owned subsidiary of Liberty Star. A total of 22 holes were drilled for a total of 16,226 feet of drilling. Important intersections of rock generally associated with producing breccias pipes were made. We did not intersect any ore mineralization during the drilling program.

[#2] Big Chunk Super Project (“Big Chunk”):
We plan to ascertain whether the Big Chunk claims possess commercially viable deposits of copper, gold, molybdenum, silver, palladium, rhenium and zinc.

Our Big Chunk claims are undeveloped. The claims are located in a remote area of Southwestern Alaska near Lake Illiamna, Alaska’s largest lake. ...(1) Twenty seven scout diamond drill holes drilled by Liberty Star in 2004 – 2005 intersected the same rock types as were intersected in the exploration drilling on the Pebble deposit (2) All drill holes, which were spaced over some 500 square miles, intersected the outer shell or propylitic halo of multiple porphyry copper systems, which is the model co-developed by our director, Dr. John Guilbert; and (3) Copper and molybdenum sulfides along with low grade gold were intersected in two drill holes in the White Sox target area. “This mineralization and associated alteration may indicate a porphyry Cu-Mo system”(SRK Big Chunk Technical Report- page 109, 11.2 Results of Drilling, available on the Liberty Star Web Site. ...There are no open-pit or underground mines, nor is there any mining plant or equipment located on the properties. There is no power supply to the properties. There is no road access to the properties, but such public road access is planned for the Pebble mine, and as currently planned, that road will cross the Company’s land, and be accessible for the Company’s use. Extensive geotechnical data on the Big Chunk claims has been acquired between start-up of 2004 and the current time.

During the field seasons of 2004 and 2005 Liberty collected approximately eleven thousand geochemical samples. ...These samples were analyzed by Acme Labs, a Certified Assayer in Canada for 64 elements for each sample. For the eleven thousand samples, this resulted in approximately seven hundred thousand separate analyses including blanks, repeat and control samples part of the QA/QC (Quality Assurance Quality Control) procedures. ...The samples...were processed using computer techniques and the results analyzed and interpreted. Known indicator elements, including porphyry copper-gold mineral center elements, formed typical porphyry copper center anomaly zones. ... The...targets in the Liberty Star Big Chunk have yet to be tested by drilling. ...

We have not defined mineral resources on any of our claims at Big Chunk.

[#3] Tombstone Super Project (“Tombstone”):
Our CEO and Chief Geologist, James Briscoe, has long experience in the Tombstone district, where he first worked in 1972. ...

The Tombstone claims are undeveloped. However significant amounts of aeromagnetic surveys, IP (Induced Polarization Surveys), geologic mapping by the USGS and others, and geochemical surveys including soil, rock and vegetation sampling have been conducted at various times by various parties, over the last 60 years. ...

In mid March 2011, Liberty Star contracted SRK to prepare three (3) Technical studies and Reports in a form similar to mineral reports prescribed under NI 43-101. ... This information was combined with historic technical reports going back to 1878 and more recent data up to August 2011 (the date of their reports). ... These Technical Reports thoroughly summarize and illustrate the salient geotechnical data of the Tombstone Mining District covering about 250 square miles and present much data in computer map format. In such context, they analyze Liberty Star’s exploration programs as related to the entire area, make estimates and recommend execution of proposed Company exploration programs. Because of competitive pressure and the unique nature of the data which includes 40+ years of private report compilation by James Briscoe, our CEO, these reports are considered confidential and will not be released for the foreseeable future. ...

We have requested and have received a cost estimate from Geotech of Aurora (Toronto area) Ontario, Canada, which is the only purveyor of this helicopter borne electromagnetic (EM) geophysical method. This geophysical method has the ability to “look down” into the crust of the earth about 2,000 meters (6,000 feet) and detect sulfides which may be associated with porphyry copper systems...thus identifying whether it is a porphyry copper system or some other mineral system. When combined with our geochemical data, we can determine the position of the copper-moly center of the system and design our drill program to efficiently test and define mineralization.

[#4] East Silver Bell Porphyry Copper Project (“East Silver Bell” or “ESB”):
Located northwest of Tucson, Arizona, the claims currently are within the Ironwood National Monument. ...We have not identified any ore reserves to date. ...The optioned mineral claims are owned by JABA US Inc., a corporation in which two of our directors are owners.

Circa 1994 JABA (US) Inc. compiled geophysics. ...Subsequent to these studies, the ground was lease-optioned to Valarie Gold Exploration Inc., (Valarie) a Canadian exploration company. They drilled 6 holes to a predetermined depth of 600 feet, using a rotary drill and recovered drill chips, sampled at 5 foot intervals. ...These holes did not penetrate the leached chalcocite capping rock and did not enter sulfides. Valarie relinquished their lease. Latter Kennecott Copper Corp. optioned the claims and drilled three rotary drill holes. Of these holes two twisted off the drill bits at shallow depth and had to be abandoned while in the leached chalcocite capping. One hole penetrated to a depth of 1,000 feet but poor sampling procedures negated any meaningful data from this hole, when primary samples were irretrievably lost. These two drill attempts were predictably not successful but geochemistry from the Valarie drill holes did show shadow geochemical copper enrichment. ...Circa 1998 the Ironwood National Monument was created over JABA’s valid mining claims. The surface of these claims cannot be used to extract the copper mineral body below by the open pit mining method. ...It is believed that this mineral body can be extracted from the ASARCO property by underground – in situ leach technology at some point in the future. To date we have not identified any ore reserves on the East Silver Bell Project.

Again, from the SEC filed 10K Annual Report, as follows is Liberty Star’s overall summary of any and all mineralization on all their four projects (including both “super” projects and non-“super” projects):

We have not found any mineral resources on any of our claims.

August 14th “Montanj49” posted a message on the Agoracom “Liberty Star” Message Hub. The following part of the message fascinated me because, usually, investors in speculative stocks such as this don’t have such a long-term perspective as does “Montanj49”:

“I bought a ticket for this ride because it looked like JB knows what he is doing and appears to be an honorable man. I believe I will see a cash-in of some degree during my life time but the big money may occur after I’m gone! So, out of principal and other personal reasons I would like my kids and grandkids to reap those rewards. In other words, I plan to stay somewhat invested! Alaska may be the biggest part! Can’t even guess how far away that is!”

I figured—being that this investment is targeted “after I’m gone!” for the “kids and grandkids”—there must be some very real and very solid and very spectacular reason to stay with it for so long.

Knowing human nature and knowing how investigatory and curious we all are, I figured there would be no shortage of Shareholders, on the Fancamp Message Hub, who would be eager to join me booking airplane tickets to Alaska, so we can have a firsthand look for ourselves.

But before we go, I suggest all candidates for the flight go to the Liberty Star website first. That way, you’ll have fewer questions to ask after you arrive in Alaska.

http://www.libertystaruranium.com/

The first thing displayed on the Liberty Star home page right under the Menu Bar at the top of the Home Page are clocks the size of four lines of large type, giving you the time in Beijing, Los Angeles, Tucson, Chicago, New York, and London. As a matter of fact, these same clocks appear on every single page of the website. They give you the correct time in all six cities. Out of those six cities, they have an office in Tucson, without any presence in the other five. I suppose the reason for the worldwide clock presentation is to underline the fact that this a truly a world-class operation; and its Shareholders, naturally, are world-class travelers. Well, that’s a confidence booster!

The website also has a good deal of general educational literature (which does not mention Liberty Star). Some of it was issued by the United States Government and some of it was issued by other sources. You get to learn all about the science of finding minerals. Shareholders can even learn to speak to the officers of the company using and understanding the scientific terminology! There’s a lengthy “Mining & Geology Glossary.” It contains such entries as “Alloy – A compound of two or more metals.”

Best of all, there’s a thirty-two page brochure published in 2008 (marked “MUST READ!” in all capital red letters) by “Education Syndicate,” titled “Airborne AFMAG and the ZTEM Exploration System.” This System does not belong to Liberty Star; and Liberty Star does not use it. But it’s a great read anyway. This is an example of the kind of systems geological companies possibly would use on the occasions when Liberty Star can afford to hire them for their expertise.