Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) announced positive 2022 reverse circulation drill results from its Black Pine project in Idaho, reported PI Financial analyst Chris Thompson in a Feb. 22 research note. He also highlighted that the explorer's stock is currently "fire sale cheap."
The British Columbia-based mining firm is trading now at about CA$0.52 per share, "a steep discount to its 52-week high of CA$1.27," Thompson noted. In comparison, PI Financial's target price on Liberty is CA$0.90 per share.
One goal of the drill program was to discover additional higher-grade, oxide gold mineralization near surface, noted Thompson, and Liberty did. Newly reported drill results showed this very geology in two areas: the M and Back Range zones.
"While resources defined at both zones are small (less than 10% of Black Pine's global resource), grades are higher than Black Pine's global resource average (about 0.5 g/t)," Thompson pointed out. "Mineralization hosted by both zones is also near surface."
"Grade Kicker" in M Zone
One of the hot areas is well outside the defined M zone resources. There, a stepout hole from prior drilling encountered 46.7 grams per ton (46.7 g/t) gold over 1.52 meters (1.52m), "a pleasant surprise," described Thompson.
Another M zone intercept "provides the grade kicker that many have forgotten Black Pine can deliver," Thompson noted. Returned by hole LBP813, it was 18.3m of 7.07 g/t gold, including 10.7m of 11.92 g/t gold and including 1.5m grading 46.7 g/t gold.
Liberty is still awaiting data for offset holes drilled at Black Pine last year. It is hoped they will show resource growth potential in the M zone.
Another Zone With Potential
The second noteworthy area is the Back Range zone. Drill results showed it may host near-surface, high-grade oxide gold mineralization, reported Thompson. Specifically, hole LBP782 cut 115.8m of 0.78 g/t gold starting at 15.2m downhole and including 125.9m of 1.29 g/t gold.
Liberty plans to further target the Back Range zone, including drilling in the 1-kilometer gap between it and the Discovery zone. This undrilled area is highly prospective for high-grade oxide gold mineralization. Permits for this work are pending.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures for PI Financial, Liberty Gold Corp., February 22, 2023
Analyst Certification: I, Chris Thompson, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.
Research Disclosures: PI Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12- month period. PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company.
General Disclosure: The affiliates of PI Financial Corp. are PI Financial (US) Corp., PI Financial Services Corp., and PI Capital Corp. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts and all other Research staff are not directly compensated for specific Investment Banking transactions.
None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of PI Financial Corp.
