Black Pine Keeps Growing: Liberty Gold Extends Idaho Oxide Gold Zone

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• Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) said drilling at its Black Pine project in Idaho defined a 200-by-400-meter northern extension of oxide gold mineralization at the Rangefront Zone. The extension carries grades above the reserve cutoff and remains open to the north.
• About 25 million to 35 million tonnes of inferred material are targeted for upgrade. The drilling also established a faulted eastern boundary, which allows engineering of the heap leach pad to move forward.
• Drilling in rock stored from past mining found material above the reserve cutoff. That material could be used as early mine feed or construction material, and 16 holes are still pending.
• A September feasibility study estimated a US$2.4 billion after-tax NPV and a 60.5% IRR at US$3,250 gold. Permitting targets a Record of Decision in January 2028.
• Analysts at Ventum Financial and Paradigm Capital called the results positive and see upside beyond the feasibility plan.
• Gold is about 27% below its January record, but Goldman Sachs targets US$5,400 an ounce by the end of 2027, citing strong central bank buying.

Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) said drilling at its 100%-owned Black Pine oxide gold project in southeastern Idaho defined a 200-by-400-meter northern extension of oxide gold mineralization at the Rangefront Zone, according to an October 22 release. The extension carries grades above the current reserve cutoff and remains open to the north.

The company said about 25 million to 35 million tonnes of inferred material above the resource cutoff is now targeted for upgrade to a higher resource classification. Highlights included 0.36 grams per tonne (g/t) gold over 144.8 meters, including 1.27 g/t over 18.3 meters, in hole LBP1347, and 0.42 g/t over 62.5 meters, including 0.63 g/t over 15.2 meters, in hole LBP1341A.

Owen Nicholls, director of technical services for Liberty Gold, said the early drilling was aimed at the parts of the project that matter most for mine design. "The initial stages of the 2026 drill campaign at Black Pine have focused on areas with potential to have an impact on design work as we progress beyond our feasibility study and onto detailed engineering," he said. "Overall, the drill results from the early stages of the 2026 campaign have expanded the mineralization footprint in Rangefront and provided ample data to de-risk engineering designs."

The results cover the first two phases of a planned 50,000-meter reverse circulation drill program. At Rangefront, 7,417 meters in 29 holes wrapped up this season's step-out drilling along the zone's western and northern margins. The first stage focused on extending oxide gold mineralization north beyond the current resource pit. Hole LBP1293 returned 0.30 g/t gold over 91.4 meters.

The drilling also established a clear faulted eastern margin to the mineralization, which the company said allows detailed engineering design of the heap leach pad to move forward.

"Drilling between the current Rangefront resource and the feasibility heap leach pad has defined a northern extension to oxide mineralization and established a clear faulted eastern margin, thus providing crucial inputs for detailed engineering of future infrastructure," Nicholls said. Cyanide-soluble to fire assay (CN/FA) ratios, which Liberty described as an indicator of recovery performance, ranged from 61% to 98%, consistent with Rangefront's known metallurgy. Future step-outs will target the zone's western, southern, and southeastern margins.

The company also drilled 2,848 meters in 73 holes at the project's legacy rock storage facilities, which hold material left from past mining at Black Pine. Drilling at the CD facility is complete. At the A facility, drilling is also finished, with results received for 14 holes and 16 still pending. Highlights included 0.86 g/t gold over 59.4 meters in hole BP26BF_CD039 and 0.29 g/t over 38.1 meters in hole BP26BF_A029. CN/FA ratios varied widely, from 8% to 98%, and the company is running additional tests, including "preg-rob" assays, to understand the variation.

"Legacy rock storage material characterization has been completed, and positive results suggest the potential to include the material in the early years of mine planning or for use as construction material," Nicholls said. Liberty said that the decision will be made during detailed engineering.

Still to come this season are "Drill-to-Measured" programs of 205 holes at Discovery, 60 holes at J, and 181 holes at Rangefront, with completion depending on the weather. The company also plans step-out drilling at the F and M zones, plus drilling to collect geotechnical and hydrologic data for engineering and permitting.

Black Pine is a large-scale, past-producing gold deposit designed as an open-pit, run-of-mine heap leach operation, meaning ore goes on the leach pads without crushing. A feasibility study released September 8 estimated an after-tax net present value (5% discount) of US$2.4 billion and an after-tax internal rate of return of 60.5% at a base-case gold price of US$3,250 per ounce, with a two-year payback.

The study outlines a 16-year mine life, averaging 202,000 ounces of payable gold per year over the first five years and 176,700 ounces a year over the life of the mine. Initial capital is estimated at US$411.4 million, and all-in sustaining costs at US$1,566 per ounce. The study is backed by a Probable Mineral Reserve of 4.04 million ounces of gold in 433.3 million tonnes grading 0.29 g/t.

Ventum Financial Corp. analyst Taylor Combaluzier kept a Buy rating and a CA$4.30 per share target price.

Black Pine is a covered project under the federal FAST-41 program, which coordinates federal permitting reviews, and Idaho has aligned its state permitting with that schedule. The U.S. Forest Service published a Notice of Intent to prepare an Environmental Impact Statement on April 3. The coordinated permitting schedule released in March targets a Record of Decision in January 2028.

"While permitting outcomes are never guaranteed, this level of coordination significantly enhances visibility and confidence in the path forward," said Jon Gilligan, president and CEO.

Upcoming catalysts include results from the 16 pending A facility holes and the rest of the 2026 drill program, ongoing detailed engineering, and progress on construction financing. In an October 7 interview with Kitco, Gilligan said the company is in talks on a mix of debt, streaming, and equity to fund the build while keeping dilution in mind. He said Liberty is not seeking a takeover and is considering a future U.S. listing.

Liberty had US$36.5 million in cash and cash equivalents as of June 30, according to its second quarter results. Centerra Gold Inc. (CG:TSX; CGAU:NYSE) holds a 9.9% stake and has exercised its top-up right this year to maintain it.

Ventum Financial Corp. analyst Taylor Combaluzier kept a Buy rating and a CA$4.30 per share target price in an October 22 report, implying a return of about 120% from the CA$1.95 share price at the time.

"Results support our view that Black Pine offers meaningful upside beyond the FS through resource growth and conversion," he wrote.

Combaluzier said CEO Jon Gilligan told Ventum that detailed engineering is targeted for completion in the third quarter of 2027, financing by mid-2027, and a Record of Decision in the first quarter of 2028.

"Completing engineering and financing ahead of the ROD should position Liberty to move efficiently toward a construction decision following approvals," he wrote.

Paradigm Capital analysts Lauren McConnell, Don Blyth, and Don MacLean also called the results positive in an October 22 flash note.

"Today's release reinforces our view that Black Pine's feasibility plan should be treated as the initial development case, with further resource growth and optimization potential beyond it," they wrote.

Paradigm said Liberty trades at 0.23 times NAV at a gold price of US$4,200 per ounce, well below the roughly 0.54 times historically paid for developers in its "Takeover Twenty" group. The analysts named Liberty a top pick for the second half of 2026.

Gold traded just above US$4,000 an ounce on October 22, about 27% below the record of US$5,589.38 it set on January 28, according to CBS News. Even after the pullback, the metal is still well above the roughly US$2,624 it started 2025 at.

The recent weakness has come from rising interest rate expectations. Elevated oil prices have stoked inflation worries and pushed the 10-year Treasury yield above 5% before retreating on October 22. Goldman Sachs sees that pressure delaying gold's next leg higher, not ending it. In a September 23 note reported by investingLive, the bank trimmed its end-2026 forecast to US$4,650 an ounce but held its end-2027 target at US$5,400. That would be roughly 30% above current levels.

Goldman said central banks are driving the outlook. Official-sector purchases are running at about 90 tonnes a month, compared with a pre-2022 average of 17 tonnes, and the bank credits that demand with nearly all of its expected gain through 2027. China's central bank had added gold for 22 straight months as of August.

For developers, the math still works at today's prices. Liberty Gold's Black Pine feasibility study used a base case of US$3,250 an ounce, about 20% below where gold trades now, and still produced an after-tax NPV of US$2.4 billion.

Ownership includes several well-known mining and resource investors. Major shareholders include Centerra Gold, which holds about 9.9% of the company; Van Eck Associates, which holds about 9.67%; and Franklin Advisors, which holds about 7.69%. Institutions hold about 31.67%, and management and insiders own about 3% of Liberty Gold's outstanding shares. The rest are retail.

Liberty has a market cap of CA$1 billion, 547.96 million outstanding shares, and a 52-week range of CA$0.64 to CA$2.30.

What did Liberty Gold's October 22 drill results show?
Drilling defined a 200-by-400-meter northern extension of oxide gold mineralization at Rangefront, including 0.36 grams per tonne gold over 144.8 meters. Drilling of legacy rock storage facilities also found material above the reserve cutoff.

Where is the Black Pine project located?
The 100%-owned Black Pine oxide gold project is in southeastern Idaho, in the Great Basin.

What is the status of the 2026 drill program?
The first two phases of the planned 50,000-meter program are complete. Still to come are Drill-to-Measured programs at Discovery, J, and Rangefront, step-out drilling at the F and M zones, and geotechnical and hydrologic drilling. Completion depends on the weather.

What could the legacy rock storage material be used for?
Liberty said the material could be included in the early years of the mine plan or used for construction. It will be decided during detailed engineering, after more metallurgical testing.

What did the feasibility study find?
The September 8 study estimated an after-tax NPV of US$2.4 billion and a 60.5% IRR at US$3,250 gold. It outlines a 16-year mine life averaging 202,000 ounces a year over the first five years, with initial capital of US$411.4 million.

When could Black Pine be permitted and built?
The FAST-41 permitting schedule targets a Record of Decision in January 2028. According to Ventum, Liberty is targeting financing by mid-2027 and completion of detailed engineering in the third quarter of 2027, ahead of a construction decision.

What do analysts think?
Ventum Financial has a Buy rating and a CA$4.30 target price.

Paradigm Capital named Liberty a top pick for the second half of 2026 and said the stock trades well below what acquirers have historically paid for developers.

How is Liberty funding the project?
Liberty had US$36.5 million in cash as of June 30. The CEO has said the company is in talks on a mix of debt, streaming, and equity to fund construction.