Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) reported positive phase 5A results from its ongoing metallurgical program at its Black Pine project in southeastern Idaho, reported Peter Bell, Canaccord Genuity analyst, in an Aug. 19 research note.
"The high recoveries and fast kinetics (10 days) are supportive of our positive view on Black Pine," Bell wrote.
1,048% Return Implied
Canaccord Genuity reiterated its CA$4.25 per share target price on the U.S.-based junior developer, trading at the time of Bell's report at about CA$0.37 per share, the analyst noted. From this price, the return to target is 1,048%.
Liberty remains a Speculative Buy.
The company has 455.2 million shares outstanding. Its market cap is CA$168.4 million. Its 52-week range is CA$0.25–0.43 per share.
Fleshing Out Metallurgical Data
The purpose of Liberty's multiphase metallurgical program at Black Pine is to determine the metallurgy in untested areas, particularly in the main deposit, and confirm that gold recoveries are consistent throughout the entire mineralized footprint.
This 5A phase encompassed 24 column leach tests. They were done on composites from untested areas in the Bank Range and J zone and on variability composites in the M zone, Tallman and F zone to infill previous sampling.
Gold, Silver Extraction Figures
As for the result highlights, Bell wrote, column leach tests showed a weighted average gold extraction of 80.6%, and individual composites were as high as 90.8%. Silver extractions ranged from 13.7–72.3%.
The 80.6% weighted average gold extraction on column leach testing "strongly correlates" to the weighted average gold extraction on coarse crush bottle roll tests, which was 78.9%. Further, the latter result is consistent with previous metallurgical results.
Bell pointed out that testing in the Back Range and J zone, expanding on the metallurgical work done in phase 4, reduced the weighted average of gold recoveries slightly to 80.6% from 84.2%. However, Canaccord Genuity attributes this to spatial variability within the deposit. This lower figure still remains above the average recovery used in the 2024 prefeasibility study, which was 70.4%.
Consistent Results to Date
Bell highlighted that the results of the extensive amount of metallurgical testing carried out since Liberty acquired Black Pine in 2016 are consistent, and this is encouraging.
"Overall, we believe the test work Liberty has done to date demonstrates the predictable nature of gold recovery across the system and provides a strong level of confidence for the proposed run-of-mine, heap-leach processing approach," he added.
More to be Done
Liberty has at least four more phases planned for its Black Pine metallurgical program, Bell wrote and described them. The test work of the next phase, 5B, was completed. This was column leach testing on 21 variability composites from infill areas in Rangefront and the Discovery zone. The pending results are expected in Q3/25.
In phase 6, now underway, pilot-scale column testing will be done on seven, 20-ton run-of-mine surface bulk samples from the main mineralized lithology types. Of these, six will be in pit and one, at surface. Now, three of the bulk samples are under leach, and the other four are being collected and prepared. Results from this phase are expected in H1/26.
Phase 7 will consist of column leach testing of nine cutoff grade variability composites. These, too, are currently under leach.
Test work for phase 8 is expected to start in late Q3/25. Material from 24 already-drilled sonic holes over about 1,400 meters in the legacy heap-leach pad will be tested for the potential to be overliner and to be direct leach feed. Now, Liberty is planning which composites to test and what metallurgical tests to do.
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