Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) is one of those companies whose future is pretty easy to see. It's part of the stable of Mark O'Dea who sold Long Canyon to Newmont for $2.3 billion at the top of the last cycle.
After the sale of Fronteer to Newmont, the non-core assets were spun off into another company. Two of the projects were in Turkey. Liberty has been trying to do something with them for the last couple of years so they could focus on their US deposits in Idaho and Utah. Just recently Liberty Gold hit the jackpot when a Turkish company announced an offer for their Halilağa copper gold porphyry deposit.
The project is 60% owned by Teck and 40% owned by Liberty Gold. The Turkish company is paying $55 million USD for a 100% interest in three payments over a two-year period. Liberty will be getting $14 million USD when the deal closes in September or so. There will be two additional payments of $4 million USD each on the first anniversary and on the 2nd.
Liberty Gold will continue to own 60% of another Turkish property, the TV Tower gold project. The TV Tower project shows a 43-101 resource of 523,000 ounces of gold and 35 million ounces of silver. Until relations improve between the West and Turkey, TV Tower will remain on the back burner for Liberty but for sale to any interested buyer.
Liberty Gold happens to be sitting in the Cat Bird's seat. They had the best part of $6 million to devote to their twin oxide gold projects in the US, one in Idaho and one in Utah. Both have been explored by Liberty at a reasonable rate. For the last half dozen years, cash has been king in the junior resource field. Liberty was well cashed up and has picked up two interesting gold projects and is busy moving them forward.
Black Pine has a 43-101 technical report, however Liberty has not yet done a resource for the project. Mining was conducted at Black Pine from 1992 until 1997 at an average grade of 0.63 g/t gold producing 435,000 ounces.
Liberty began releasing assay results from their current Black Pine drill program in May. The consistency of the results is a big hint as to the potential for adding a lot of ounces including 1.51 g/t Au over 48.8 meters, 1.45 g/t Au over 45.7 meters and 1.19 g/t Au over 38.1 meters. More results came out in June showing 1.78 g/t Au over 47.2 meters including 3.24 g/t Au over 22.9 meters. Another new discovery was reported in mid-July showing 1.78 g/t Au over 48.8 meters including 4.72 g/t Au over 15.2 meters.
Meanwhile at Goldstrike drilling has been going on since 2016. A 43-101 was published in February of 2018 showing 1.14 million ounces of gold. Exploration continues to expand the resource and testing new areas.
I suspect things are going to get very interesting soon. Mark O'Dea isn't in the habit of collecting interest on a saving account. He is going to be sitting on about $22–$25 million in cash in CAD. I think he will advance the drill programs at Black Pine and Goldstrike and be looking around for other interesting properties.
Mark O'Dea has a certain magic touch. While the current market cap of $125 million CAD may seem like a lot to investors used to dealing with juniors under $10 million, the value is backed up with over a million ounces in Utah, a lot of gold and silver in Turkey that someone is going to want one day and a prior producing gold mine in Idaho. Remember that he sold his last major project for $2.3 billion. That's billions with a capital B. He and his highly qualified team certainly could pull another Fronteer off and increase the market cap by a factor of 20. He has the team, he has the projects and he has the brains.
Liberty Gold is an advertiser and as such I am biased. Please do your own due diligence.
Liberty Gold
LGD-T $0.62 (Jul 22, 2019)
LGDTF-OTCQB 207.6 million shares
Liberty Gold website.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
[NLINSERT]Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Liberty Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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