Analyst Geordie Mark, Ph.D. of Haywood Capital Markets commented in a September 1 research note that Canadian gold explorer Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB), announced "exciting drill results" from the company's ongoing RC drilling at its Black Pine Project in southern Idaho.
Liberty Gold's recent drill results reportedly discovered three new areas lying beyond the boundaries of the current resource footprint. The firm advised that it is referring to these areas as the Rangefront D-4, Rangefront SW, and Upper F zones.
Haywood claimed that "the newly announced discoveries importantly highlight the unbounded nature of the Black Pine gold system." The analyst mentioned that the presence of higher-grade material to depth at the Rangefront D-4 Zone could potentially add appreciable exploitable resources if confirmed with future delineation drilling.
The analyst pointed out that drill results from five holes at the D-4 target found appreciable zones of gold mineralization with Holes LBP356 and LBP358 returning the best intervals. Two assay segments from Hole LBP356 measured 0.91 g/t Au over 86.9 m and 2.03 g/t Au over 21.3 m. Hole LBP358 produced results that included 1.23 g/t Au over 24.4 m and 1.37 g/t Au over 50.3 m.
The company also announced very encouraging positive drill results from the Rangefront SW and Upper F zone discoveries, which demonstrate Black Pine's untapped potential.
Haywood Capital market stated that it is now awaiting Black Pine's PEA which is scheduled to be completed in Q3/21 and noted that only a portion of the Black Pine target area had been included in the initial MRE.
Liberty Gold's ongoing exploration program started drilling in April and provides for a total of about 52,000 m of drilling including some expansion drilling tests of areas situated outside of the existing constrained resource.
The report stated that in drilling conducted at the Rangefront SW Zone, Hole LBP290 returned 1.15 g/t Au over 21.3 m and Hole LBP337's results measured 2.1 g/t Au over 13.7 m. Drilling at the Upper F Zone also showed some good results with Hole LBP350 returning 1.40 g/t Au over 12.2 m.
The analyst explained that Liberty's primary focus over the last several years has been its on its Nevada Goldstrike Project. According to a PEA study, Goldstrike is believed to host a 1.22 Moz gold resource grading 0.49 g/t Au.
However, the Idaho Black Pine property has now become a flagship asset based upon high-grade drilling results obtained from continued exploration and promising metallurgical test work at the site, which shows potential for a viable ROM heap leach operation. Haywood Capital stated that a maiden MRE for the Black Pine Project that was released in July 2021 portrayed a pit constrained resource of 2.1 Moz of gold at an average grade of 0.48 g/t Au. The data included an Indicated resource of 1.7 Moz Au and an Inferred resource of 370 Koz Au. Haywood Capital added that it expects Black Pine will only require modest CAPEX and operating costs when the PEA is completed in H2/2021.
Haywood Capital Markets stated that it continues to be encouraged by ongoing exploration success at Black Pine and views Liberty to be well positioned for resource growth over the near-term and therefore recommends accumulating shares at current price levels. The analyst remarked further that given the company's oxide dominant asset base and attractive relative valuation, it believes that Liberty Gold stands out as a strong downstream M&A target candidate in a tier-one jurisdiction.
Haywood Capital Markets advised that it is reiterating its "Buy" rating for Liberty Gold Corp. with a target price of CA$2.75 per share. The firm's shares trade on the Toronto Stock Exchange under the symbol "LGD" and last closed for trading at CA$1.19 per share on Thursday, September 2, 2021.
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1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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Disclosures from Haywood Securities, Inc., Liberty Gold Corp., Sept. 1, 2021
I, Geordie Mark, hereby express that the views expressed in this report (which includes the rating assigned to the issuer's shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my compensation was, is, or will be directly or indirectly related to the specific recommendations.
Haywood Securities, Inc. has reviewed lead projects of K92 Mining Inc., Liberty Gold Corp., Osisko Mining Corp., and Pure Gold Mining Inc. and a portion of the expenses for this travel have been reimbursed by the issuer.
Haywood Securities, Inc. or one of its subsidiaries has managed or comanaged or participated as selling group in a public offering of securities for Osisko Mining Corp. and Pure Gold Mining Inc. in the past 12 months.