In an April 26 research note, PI Financial analyst Chris Thompson reported that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) released the final results of its large diameter, metallurgical core drilling at Black Pine, which he discussed.
The results "contain significant oxidized intercepts which we have come to expect from the Black Pine system," Thompson added.
Again, the strongest intercepts came from the discovery focus area, on which the upcoming maiden resource estimate will be based, Thompson highlighted. He cited hole LBP231C, targeting the D-3 zone, as an example. It showed more than 56 meters (56m) of oxide gold mineralization starting from 173m downhole, including 24.1m of 1.23 grams per ton (1.23 g/t) gold. The intercept returned 92% cyanide solubility, the highest percentage among the final drill holes reported.
"Other intercepts from the discovery focus area also returned high cyanide solubility values (over 65%) owing to the thoroughly oxidized nature of the deposit and supporting simple heap-leach processing," wrote Thompson.
Also, the analyst pointed out that "encouraging" results came from the historic E pit area, at the edge of the land that is permitted for exploration. These findings warrant follow-up, he wrote, as does the large, undrilled gap between the E pit and the discovery focus area.
Liberty Gold already started its next drill program, its 2021 reverse circulation campaign, having kicked it off in early April. So far the explorer drilled five holes, two in the gap between the discovery focus area and the Rangefront zone.
Investors can expect a potential catalyst in the form of a Black Pine maiden resource estimate in early May followed by a second one, a Black Pine preliminary economic assessment in Q4/21.
For the former, Thompson wrote, "we are targeting about 51,000,000 tons grading 0.88 g/t containing about 1,500,000 ounces gold, however, based on recent results, an expanded resource containing more tons at a slightly lower grade seems likely."
PI Financial rates Liberty Gold Buy and assigns it a CA$2.80 per share price target. The explorer's current share price is CA$1.54.
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