Liberty Gold Corp.'s (LGD:TSX; LGDTF:OTCQX) newest 2025 drill results, showing additional broad, shallow intervals of oxide mineralization, expanded the upper, near-surface part of the Rangefront zone at its Black Pine project in Idaho, reported Lauren McConnell, analyst at Paradigm Capital, in an Oct. 15 research note.
"Today's results further confirm Rangefront as the cornerstone growth engine for Black Pine," McConnell wrote.
Stock Still Undervalued
Liberty is still trading at a deep discount given its 0.08x price:net asset value is one-third of the peer average of 0.24x. As such, a significant rerating of LGD is possible given Rangefront's scale and quality, as depicted in the feasibility study (FS).
"[Liberty] currently ranks No. 2 in our Takeover Twenty," McConnell wrote.
The company's shares are up +109% on a 3-month basis while peers' shares gained only 58%.
Surface Zone Expansion
Liberty reported results for 14 holes completed over 2,979 meters (2,979m) in Rangefront, as part of its 2025 feasibility-stage reverse circulation drill campaign. The returned intervals featured broad, shallow, oxide intercepts, including these:
- 0.41 grams per ton gold (0.41 g/t Au) over 41.1m at 45m below surface: hole LBP1145
- 0.92 g/t Au over 35.1m, including 9.1m of 2.6 g/t Au: hole LBP1141
- 0.28 g/t Au over 125m in eastern Rangefront: hole LBP1136
- 0.37 g/t Au over 71.6m in northern Rangefront: hole LBP1144
"Rangefront now shows continuity of shallow, leach-amenable, oxide gold across multiple sectors," McConnell wrote.
These new data expand Rangefront's upper, near-surface oxide zone to more than 150m wide in a north-to-south direction and to more than 200m wide in an east-to-west direction. Also, the results convert what had been modeled as waste blocks in the 2024 prefeasibility study (PFS) into potentially economic material.
"The delineation of a thicker, higher-grade, near-surface zone could materially improve early-year economics in the feasibility study through reduced strip, enhanced grades and faster payback," McConnell wrote.
Zone's Strategic Importance
Now, the entire Rangefront zone spans about 1,500m by 1,200m by 300m, reported McConnell. It hosts about 1,900,000 ounces (1.9 Moz) of gold in the Indicated and Inferred categories, according to the PFS, but this excludes results of the stepout holes drilled this year and last.
Paradigm still considers Rangefront the logical start pit at Black Pine, from which 200,000 ounces (200 Koz) of gold per year could be produced under an expanded 3 Moz model. In comparison, the 2024 PFS outlined estimated production of 135 Koz per year. Also, it makes sense for Rangefront to be a core early mining area given its strategic location next to infrastructure and the proposed heap-leach pad.
As for its financial position, McConnell noted, Liberty is well funded after Centerra Gold Inc.'s (CG:TSX; CADGF:OTCPK) CA$28 million strategic investment in the explorer, earning it a 9.9% interest.
More Drilling Ahead
McConnell pointed out that Liberty drilled about 14,300m this year so far at Black Pine and intends to complete another 15,000m by year-end. The objectives of the ongoing infill and conversion drilling are to improve confidence in near-surface ounces, upgrade resource categories and generate metallurgical and geotechnical data for FS compliance.
Metallurgical drilling, to be done this quarter, aims to extend composite coverage over the expanded upper Rangefront zone.
On the Horizon
McConnell wrote that the next 12 months for Liberty should be catalyst rich. Expected events include release of ongoing infill and stepout drill results, completion of an updated mineral resource estimate this quarter, incorporation of new metallurgical data into the feasibility design, and determination of reserve and engineering outcomes in early 2026.
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