Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) released additional encouraging drill results from its Black Pine oxide gold project in Idaho, ahead of an update of the project's resource estimate due out in H2/23, reported PI Financial analyst Chris Thompson in a June 20 research note.
"We continue to be impressed by Liberty Gold's exploration success at Black Pine," Thompson wrote.
Opportunity for significant gain
Liberty is currently trading at about CA$0.46 per share, noted Thompson.
"With the stock currently trading at about 0.2 times net asset value, we see significant value upside as Liberty advances Black Pine to a preliminary economic assessment/prefeasibility study stage of development," the analyst added.
Thus, PI Financial has a target price of CA$1.15 per share. This translates into a potentially material gain for investors of 153%. Liberty is a Buy.
Exploration in progress
So far this year at Black Pine, Liberty completed 15,000 meters (15,000m) of the planned 32,000m of drilling. Earlier this month, the company added a reverse circulation rig to expedite the work through H2/23.
In his report, Thompson reviewed newly released results from this 2023 reverse circulation drill program at Black Pine.
M zone keeps growing
Recent drill data expanded Black Pine's M zone. For instance, stepout drilling from previously drilled hole LBP813 "provides further confirmation of expansion potential surrounding the high-grade intercept of 7.07 grams per ton gold (7.07 g/t Au) over 18.3m," wrote Thompson.
Also, hole LBP884 returned 0.8 g/t Au over 29m, including 3.33 g/t Au over 1.5m. This hole and hole LBP887 extended the M zone's west-to-northwest mineralized trend 80m to the west and 120m to the north. In those directions, mineralization remains open, potentially allowing for additional expansion of the existing resource and conversion of Inferred resources to Indicated.
Next quarter, Liberty will resume drilling in the M zone.
Waste rock shows grade
Also, new drill results revealed grade in areas in the Discovery zone modeled as waste rock in the February 2023 resource estimate. Hole LBP906, for example, returned 0.74 g/t Au over 21.3 m, including 15.85 g/t Au over 3m. Additional results, from four holes, are pending.
Similarly, historic waste rock material in the CD-Tallman Corridor was shown to contain gold above a 0.1 g/t Au cutoff. Specifically, hole LBP893 demonstrated 8.58 g/t Au. Results are still to come of infill drilling that tested underlying bedrock mineralization there.
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