On August 30, Liberty Gold Corp. (LGD:TSX) announced additional success toward its objective "to drill under and adjacent to four historic open pits (Covington, Moosehead, Caribou and Beavertail) in order to demonstrate continuity of gold mineralization over the entire zone" at its 100% owned Goldstrike project.
Gwen Preston of the Resource Maven newsletter followed the announcement with a Buy recommendation, a re-cap of Liberty Gold's summer progress and long-term discovery goals.
In the Aug. 30 issue of Resource Maven, Preston looked back at the BLM's approval of "Liberty Gold’s Plan of Operations for Goldstrike" in late June, which extended the company's reach from 10 acres to 77 acres. She pointed out that "even with the 10-acre limitation Liberty had managed to drill 44,000 metres in 281 holes, but the work tested less than 10% of the target areas." She then asked, "What will they find on the 90% of the property they haven’t tested yet" now that the company has access to 77 acres?
Preston explained that the "Claron formation from where it outcropped and was mined down dip and under cover" and "testing rock horizons previously assumed barren for gold mineralization" are the two types of targets at Goldstrike. "The work has been very successful. The Claron formation does consistently continue under cover and keep carrying gold. And the gold seems to continue into the underlying carbonate rocks for some distance."
She concluded that "Liberty is doing exactly what it said it would do at Goldstrike" and that "an initial resource estimate is likely early next year and perhaps that will help the market realize what is taking place here. Investors may like hot holes but slow-n-steady success delineating large areas of shallow gold will also work. It just takes time."
Haywood Securities analyst Mick Carew stated in an Aug. 21 report that drill results from the Mineral Mountain target at Goldstrike "successfully demonstrated the potential for near-surface gold mineralization over a strike length of around 1 km." He continued by pointing out that the approval of the plan of operations "now covers approximately 50% of the Goldstrike project area and allows for up to 368 drill pads.
"The Company recently added a third RC drill to the project to expedite infill, step-out, and exploratory drilling. We anticipate the release of the pending drill results from the current program," Carew concluded. Haywood has a Buy rating on Liberty with a target price of $1.00.
Liberty Gold Corp. is currently trading $0.50.
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