In a March 24 research note, Haywood Securities analyst Geordie Mark noted that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) released the final results of its 2020 reverse circulation drill campaign at Black Pine and is now focused on completing a maiden resource estimate for the project, expected in mid-2021.
"We continue to be encouraged by ongoing exploration success at Black Pine and view the company to be well positioned for resource growth over the near term," Mark wrote.
As for the Black Pine resource estimate, Liberty Gold already contracted two firms, RESPEC and SLR Consulting, to undertake the initial resource estimation work, noted Mark.
The analyst reviewed the drill results, which are from the last 35 holes placed in the D-1, D-2, D-3, Southeast Extension, M and Rangefront zones. The entire program consisted of 170 holes over about 46,000 meters (46,000m).
Highlights, Mark indicated, were from M and Rangefront, "where shallow zones of oxide mineralization were encountered across an expanding footprint and offer significant potential to build on the 2020 program." M continued to show shallow oxide gold in stepout holes to the southwest. For instance, hole LBP-256 returned 38.1m of 1.26 grams per ton gold (1.26 g/t Au) at 90m downhole. Liberty Gold plans to drill the M zone further this year.
Rangefront showed oxide gold at shallow depths to the southeast and northeast, such as 12.2m of 0.41 g/t Au at 62.5m downhole in LBP-276. Hole LBP-235 demonstrated 9.1m of 2.35 g/t Au at 244m downhole.
With Liberty Gold's amended plan of operations, the company now has access, in part, to areas between the M and Rangefront zones.
New drill results also indicated that D-3 returned high-grade intercepts at depth and D-1 and D-2 continue to demonstrate growth potential, the analyst indicated.
"Liberty Gold has demonstrated further confirmation of the targeted thesis of widespread oxide gold mineralization within the core Black Pine area and extensions continuing to demonstrate grade continuity and favorable heap-leach compatible metallurgy," Mark wrote.
The company plans to start additional drilling at Black Pine next month, to include 48,000 meters of reverse circulation and 8,000 meters of diamond drilling in about 200 holes. Liberty Gold will incorporate only a part of the findings from this upcoming campaign into the resource estimate expected mid-year and subsequent preliminary economic assessment expected in Q3/21. Also anticipated in the third quarter are results of the phase 3 metallurgical testing.
"Ahead of such catalysts, we highlight Liberty Gold's attractive valuation of 0.50x price:net asset value, predicated primarily on our 2,000,000 ounce gold resource estimate embedded in our Black Pine model," Mark wrote.
The gold explorer is now trading at about CA$1.43 per share, and Haywood's target price on it is CA$3.15 per share. Haywood rates Liberty Gold Buy.
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Disclosures from Haywood Securities, Liberty Gold Corp., Research Report, March 24, 2021
Analyst Certification: I, Geordie Mark, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Important Disclosures
▪ Haywood Securities, Inc. has reviewed lead projects of Liberty Gold Corp. and a portion of the expenses for this travel have been reimbursed by the issuer.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.
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