Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) is one of Paradigm Capital's Top Picks for 2026, reported Analyst Lauren McConnell in a Jan. 7 research note. The Canadian explorer-developer is in the process of preparing a feasibility study of its flagship Black Pine oxide gold project in Idaho.
"With feasibility delivery targeted for Q4/26 and Centerra Gold as a 9.9% cornerstone shareholder providing balance sheet strength and strategic validation, Liberty remains well positioned for continued rerating," McConnell wrote.
274% Return Potential
At the time of the analyst's report, Liberty's share price was about CA$0.91, McConnell noted. The Canadian small cap was trading at a 0.10x price:net asset value (P:NAV) at US$4,300 per ounce (US$4,300/oz) gold, a significant discount to Paradigm's Takeover Twenty acquisition median of ~0.33x P:NAV. The latter excludes the median takeover premium of about 60%, implying ~0.54x P:NAV on a premium-adjusted basis, the analyst explained. The valuation gap, she wrote, increasingly is unwarranted the closer to construction Liberty advances Black Pine.
Paradigm's target price on Liberty is CA$3.40 per share, and this implies a potential return for investors of 274%.
The Vancouver, British Columbia-based junior, with a CA$479 million market cap, remains a Speculative Buy.
Drilling and Permitting
Liberty is carrying out a roughly 40,000-meter feasibility drill program at Black Pine as well as large-diameter column leach testing, both to support a mineral resource estimate update, anticipated in H1/26, McConnell reported.
"Liberty Gold stands out as one of the most advanced and derisked oxide gold developers in the sector," wrote the analyst.
Meanwhile, as drilling continues, so does the permitting process for Black Pine. With the Mine Plan of Operations accepted, Liberty expects to receive a Notice of Intent in Q1/26. Meanwhile, the company keeps doing baseline work for the Environmental Impact Statement.
Greater Output Expected
Black Pine is a technically simple, open-pit, run-of-mine, heap-leach operation hosting 3,100,000 ounces of gold reserves plus an expanding resource base, according to the 2024 prefeasibility study (PFS).
Recent infill drilling at Rangefront and Discovery continued to show "strong block-model correlation, systematic conversion of waste to near-surface oxide mineralization and confirmation of favorable metallurgical domains," reported McConnell.
These should translate into significantly higher early and life-of-mine (LOM) gold production figures than those outlined in the PFS, due to the increasing contribution from Rangefront. The PFS has Black Pine producing an average of 135,000 ounces per year (135 Koz/year) of gold over the 17-year LOM and producing 183 Koz/year during years 1 to 5.
Also according to the PFS, peak annual output is an estimated 231 Koz of gold. The 1.3:1 strip ratio of 1.3:1 and the US$9.11 per ton processed operating cost are low. The LOM all-in sustaining cost is US$1,381/oz.
Rangefront, "emerging as the project's main growth driver and likely starter pit," as McConnell described, would provide higher-grade ounces with strong leach recoveries, boosting early cash flow. Close to the planned heap-leach facility, this discovery zone would bolster capital efficiency, too.
Outlook for 2026
Paradigm analysts collectively wrote that the TSX Small Cap Index confirmed the onset of a new primary bull market last year when it completed an 18-year base breakout. The ongoing bull market is expected to continue this year, the firm's macroeconomic risk appetite and global breadth models show. Also in 2026, Paradigm expects monetary/fiscal policy to be a tailwind for liquidity, as indicated by the decline in the U.S. Dollar Index and by global yield curve steepeners. Further, the analysts reported, Paradigm's asset allocation trend models "still favor equities over fixed income and early stages of structural rotation into commodities and hard assets."
The dominant theme for 2026 is precious metals, wrote the analysts.
"Within the gold names, we continue to see higher convexity and better risk-reward profiles in the juniors," they added.
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Important Disclosures:
- Liberty Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Paradigm Capital, Liberty Gold Corp., January 7, 2026
DISCLAIMER SECTION Company Ticker Disclosures Anaergia, Inc. ANRG-CA 3 ATEX Resources Inc. ATX-CA 2,3 Banyan Gold Corp. BYN-CA 3 Boyd Group Services Inc. BYD-CA 3 Black Swan Graphene Inc. SWAN-CA 3 Canadian Net REIT NET.UT-CA 3 C3 Metals Inc. CCCM-CA 2,3 Erdene Resource Development Corp. ERD-CA 3 First Quantum Minerals Ltd. FM-CA 3 Hudbay Minerals Inc. HBM-CA 3 Ivanhoe Mines Ltd. IVN-CA 3 Liberty Gold Corp. LGD-CA 2,3 NanoXplore Inc. GRA-CA 2,3 NorthIsle Copper and Gold Inc. NCX-CA 2,3 Omai Gold Mines Corp. OMG-CA 2,3 Profound Medical Corp. PROF-US 3 Spectral Medical Corp. EDT-CA 2,3 Taseko Mines Ltd. TKO-CA 3 VitalHub Corp. VHI-CA 3 WELL Health Technologies Corp. WELL-CA 3 Note: Please refer to above table above for applicable disclosure numbers. 1. The analyst has an ownership position in the subject company. 2. Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months. 3. Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months. 4. Paradigm Capital Inc. has greater than a 1% ownership position in the subject company. 5. The analyst has a family relationship with an Officer/Director of subject company. 6. A partner, director, officer, employee or agent of Paradigm Capital Inc. is an officer or director of the issuer. Paradigm’s disclosure policies and research distribution procedures can be found on our website at www.paradigmcap.com. Paradigm Capital Inc. research is available on Bloomberg, CapitalIQ, FactSet and Thomson Reuters or at www.paradigmcap.com. Issued by Paradigm Capital Inc. Research Rating System Paradigm Capital Inc. uses the following rating recommendation guidelines in its research: Number of Percentage Recommendation Companies Breakdown Buy 64 59% Buy – Expected returns of 10% or more over 12 months. Spec. Buy 35 32% Speculative Buy - Expected returns of 10% or more over the next 12 months on high-risk development or pre-revenue companies, such as junior mining and other early stage companies. Hold 8 7% Hold - Expected returns of less than +/- 10% over the next 12 months. Includes companies Under Review. Sell* 0 0% Sell - Expected returns of -10% or more over the next 12 months.
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