Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) reported additional metallurgical test results from Black Pine in Idaho, further derisking the project and confirming it is amenable to run-of-mine heap leaching, reported Philip Ker, analyst with Ventum Capital Markets, in an Aug. 19 research note.
"With gold recoveries averaging 80.6% across multiple mineralized zones and in line with the phase 4 results used for the 2024 preliminary feasibility study, we continue to see excellent consistency across the deposit and comparable recoveries to other run-of-mine heap-leach operations," Ker wrote.
170% Potential Upside
Ventum maintained its CA$1 per share target on Liberty, trading at the time of Ker's report at about CA$0.37 per share, the analyst noted. The target implies a potential return of 170%.
The Canadian explorer-developer remains a Buy.
Liberty has 455.2 million shares outstanding. Its market cap is CA$168 million. Its 52-week low and high are CA$0.25 and CA$0.43 per share, respectively.
Results Are Positive
Ker explained that Liberty's latest findings are from phase 5A of the eight-phase metallurgical program at Black Pine. In 5A, 24 column leach tests were done and yielded a weighted average gold recovery of 80.6%. Also, the results confirmed that recoveries are strong and consistent in previously untested areas of the deposit.
As for silver, not included in the 2024 prefeasibility study, recoveries on testing ranged from 13.7% to 72.3%. As such, Liberty is evaluating the potential of including silver in the upcoming mineral resource estimate.
Near-Term Catalysts
Ker touched on what to expect next from Liberty in the near term. Additional metallurgical test results will be released as they become available. A 40,000 meter drill program supports this feasibility study-level work.
Also expected in the near term is an updated mineral resource estimate, in Q4/25.
Completion of the feasibility study is to follow. In advance, Liberty has done various drilling and bulk sampling to continue derisking Black Pine. Results of these efforts are expected in the coming months.
"With drilling ongoing, additional metallurgical test results expected and the spinout of the Goldstrike/Antimony Ridge project pegged for Q4/25, we see a catalyst-rich future for Liberty as they continue advancing the Black Pine project with targeted production by 2028," Ker wrote.
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