Liberty Gold Corp.'s (LGD:TSX; LGDTF:OTCQX) latest results of the expansion drilling underway in the Rangefront zone have positive implications for the Black Pine gold project in Idaho, reported Phil Ker, analyst at Ventum Capital Markets, in an Oct. 15 research note.
"Near-surface oxide mineralization continues to suggest that Rangefront could be a considerable component for Black Pine and could prove to become a starter pit for a future operation," Ker wrote.
58% Return Implied
Liberty was trading at the time of Ker's report at about CA$0.72 per share, at a price:net asset value of 0.1x, a discount to the 0.28x peer average, the analyst noted.
The company offers "a deep value proposition for investors seeking high leverage to gold," Ker wrote.
In comparison to the CA$0.72 share price, Ventum's target price is CA$1.15 per share, reflecting a 58% potential return for investors.
The Canadian explorer is still rated Buy.
Liberty has 455.2 million shares outstanding, a market cap of CA$287 million and a 52-week range of CA$0.25–0.75 per share.
More Near-Surface Gold
Liberty's latest batch of feasibility stage drill results are of 14 holes totaling 2,979 meters (2,979m), part of the company's 40,000m reverse circulation drill program at Black Pine aimed at expanding the existing resource. Preparation of an updated resource estimate is to begin this quarter, and a feasibility study (FS) is to follow.
The new drill results show additional oxide mineralization occurring near surface at Rangefront. Standout intercepts include:
- 41.4m of 0.41 grams per ton gold (0.41 g/t Au)
- 124m of 0.28 g/t Au
- 71.6m of 0.37 g/t Au
Implications of Results
Ker discussed the new Rangefront drill results. One, he wrote, they continue to demonstrate the potential to expand the Black Pine resource.
Two, more near-surface mineralization suggests that Liberty could alter the current mine sequencing for Black Pine for a more optimal operation.
Three, results of the new stepout holes expanded the width of the known mineralized zone in the current resource pit by more than 150m in a north-south direction and by more than 200m in an east-west orientation.
Resource to Exceed 2 Moz
Ker highlighted that given the amount of drilling done since and excluded from the 2024 Black Pine prefeasibility study (PFS), there remains significant resource upside. Ventum expects Liberty to grow Rangefront beyond the 1,900,000 ounce resource size outlined in the PFS.
The PFS resource excluded the 15,000m of drilling done at Rangefront in 2024 and the 14,000m-plus drilled there so far this year. Plus, Liberty plans to complete another 15,000m at Rangefront by the end of this year. Thus, there will be about 44,000m of drilling whose results will be incorporated into the resource estimate for the first time. This should read through to the FS in a positive way.
Plans for Rest of 2025
This remaining 15,000m of 2025 drilling is to encompass about 50 more reverse circulation and core drill holes at Rangefront. Also, this quarter, Liberty is working to finish additional metallurgical drilling in expanded areas of the project, also to support the upcoming FS.
"We continue to see Liberty unlocking value through ongoing expansion drilling at Black Pine while derisking the project to the feasibility stage," Ker wrote.
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