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Gold Explorer Locks in Water Rights for Idaho Mine
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The Quick Take

  • Haywood Capital Markets said it is reiterating its "Buy" rating and target price of $2.75/share for Liberty Gold Corp.
  • Liberty Gold secured water rights needed for its 70,000 tpd open pit, heap leach mining operation.
  • The company strategically increased its land holdings by adding two nearby parcels covering 3.14 sq. km east of the Black Pine deposit. The land is on-strike with known high-grade mineralized areas.
  • Haywood Capital commented that these actions by Liberty Gold effectively de-risk the company making it a future potential takeover target.
  • A resource update for Black Pine is due in Q2/22.
  • Initial PEA for the Black Pine property is expected to be delivered in Q3/22.
  • Haywood Capital Markets recommends investors accumulate shares at current price levels as Liberty presently trades at a 0.33x multiple to corporate NAV8%, versus an average of 0.57x for its peers.

Mining analysts Geordie Mark, Ph.D. and Shubham Trehan of Haywood Capital Markets commented in a Feb. 11 research report that Canadian exploration company Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) has now completed two important de-risking steps at its flagship Black Pine property in Idaho.

The analysts noted that while that company continues its broad-scope drilling efforts, it has been successful in securing sufficient water rights to run an open pit-heap leach operation and has increased its land position to encompass neighboring parcels with currently defined gold deposits that offer future development potential.

The research firm explained in greater detail that the company obtained in excess of 2,300 acre-feet per annum of water rights at the Black Pine area, which it expects will be more than adequate to meet the needs of its 70,000 tpd open pit, heap leach mining operation and offers potential for an even larger scale operation than the one mapped out in its current valuation models.

The analysts indicated that Liberty Gold also strategically increased its land holdings by adding two parcels covering 3.14 sq. km east of the Black Pine deposits. The area is highly prospective for future development as it appears to encompass the northeast extension of gold mineralization previously encountered on Rangefront. The Haywood report stated that the company submitted its plans for exploration to the U.S. Bureau of Land Management in Q3/21.

Haywood Capital Markets stated it believes that "the acquisition of water rights, and a strategic land position for a future development site makes the company's path to production of lower risk and shows that management has the eye on the broader requirements that pave the way for future production."

The analysts stated that Liberty Gold shares are currently trading at an attractive valuation, considering that de-risking is evident based upon drilling being conducted at Goldstrike and Black Pine.

The analysts commented, "We continue to be encouraged by ongoing exploration success at Black Pine and view the company to be well positioned for resource growth over the near-term," and that, "given the company's oxide dominant asset base and attractive relative valuation, we view LGD to be a notable downstream M&A target in a tier-one jurisdiction."

The analysts noted that until recently, Liberty Gold has concentrated the bulk of its efforts on its 1.22 Moz Au Goldstrike project in Nevada. The PEA study for Goldstrike estimates a resource of 713 Koz Au with an after-tax net present value of US$292 million.

Haywood advised that based upon positive metallurgic work and drill results from Black Pine, that area has become the highest priority for the company as it offers opportunity for a viable ROM heap leach operation. The analysts indicated that the Black Pine Project's maiden resource estimate released last July outlined a 2.1 Moz Au resource.

Haywood noted that Liberty Gold is focused on under-explored regions of the Carlin Trend within the Great Basin. The firm concentrates on the interpreted extensions of the main gold trends there with its Goldstrike property located on the southeastern side of the Eastern Calderas in Utah and its Black Pine property situated about 100 km east of the Long Canyon Trend in Idaho. The company's TV Tower property has also found surface anomalies that show potential for porphyry Au-Cu mineralization, though the area has yet to undergo drill testing.

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 under the symbol "LGD" on the TSX Venture Exchange and last closed for trading at CA$0.97/share on Friday, Feb. 11, 2022.


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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Liberty Gold Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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Disclosures and Disclaimers, Haywood Securities Inc., Liberty Gold Corp., Feb. 11, 2022

This report is intended for institutional investors and may only be distributed to non-institutional U.S. clients in the following states: nil. Otherwise, this report may only be distributed into those states with an institutional buyer state securities registration exemption.

Analyst Certification: I, Geordie Mark, hereby certify that the views expressed in this report (which include 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/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Of the companies included in the report (K92 Mining Inc., Liberty Gold Corp., Osisko Mining Corp., and Pure Gold Mining Inc.), the following important disclosures apply: Haywood Securities Inc. has reviewed lead projects of this company and a portion of the expenses for this travel have been reimbursed by the issuer. For Pure Gold Mining Inc.: Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as a selling group in a public offering of securities for this company in the past 12 months.

Link to Research Policy:

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