Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) announced that 24 column leach tests on material from its Black Pine project resulted in a weighted average gold recovery of 80.6%, with individual composites up to 90.8%, reported Paradigm Capital Analyst Lauren McConnell in an Aug. 19 research note. The results expand coverage of the metallurgical data set to the previously untested Back Range and J zone areas and confirm consistent results in the established M, F and Tallman zones.
"Today's results reinforce the technical simplicity and metallurgical strength of Black Pine, validating heap-leach recoveries that are meaningfully higher than the 70% life-of-mine assumption in the preliminary feasibility study (PFS)," McConnell wrote.
What Testing Revealed
The weighted average gold recovery demonstrated on column leach testing was 80.6% and due to more robust recoveries in oxide composites, reported McConnell. The recovery breakdown by zone is:
- Back Range: 81.9%, including composites above 85%
- Tallman: 81.1%
- M: 81.1%
- J: 78%, the first metallurgical confirmation
- F: 67.3%, within modeled expectations, consistent with weaker performance historically
More than 80% of gold was extracted in fewer than 10 days of leaching, indicating rapid kinetics. Average gold recovery on bottle roll testing (78.9%) was in line with that on column leach testing (80.6%). This consistency confirms that processing outcomes are predictable and further supports run-of-mine heap-leaching. Management believes Black Pine's oxide mineralization is "highly amenable" to this approach.
As for silver, recoveries were between 14% and 72%. Extraction rates were higher in the M and Back Range zones. As such, Liberty is evaluating whether or not to add silver to the feasibility study resource.
The new findings in total expand confidence in recovery into new areas in the Back Range and J zones while also improving coverage in core pits.
"This lowers risk heading into the feasibility study and raises the probability that modeled recoveries—and thus cash flow—could improve versus the base-case PFS," the analyst noted.
Trading at a Discount
Year to date, Liberty is up 40% while peers are up 80%. Liberty is trading at a discount to peers, at 0.06x price:net asset value versus 0.11x, McConnell pointed out. A rerating for LGD is possible as technical risk declines and ounces grow.
Offering strategic appeal, Liberty remains No. 2 in Paradigm's Takeover Twenty, noted the analyst.
More Testing, Results Ahead
Investors can expect additional announcements of metallurgical results in the near term, wrote McConnell. This quarter, phase 5B infill results are expected, followed by phase 7 cutoff grade composite results in Q4/25 and phase 6 pilot-scale bulk test results in H1/26. These last data will finalize the recovery parameters to be used in the feasibility study, slated for completion late next year.
"With robust metallurgy now corroborated across the deposit, an active drilling pipeline aimed at resource growth and permitting formally underway, we see catalysts stacking positively into 2026," McConnell added.
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