In a Dec. 22 research note, PI Financial analyst Chris Thompson reported that new drill results from Liberty Gold Corp.'s (LGD:TSX; LGDTF:OTCQB) Black Pine project "reflect the potential to significantly expand the resource with additional near-surface oxide tons."
The newly reported findings are from five targets that are located up to roughly 1.5 kilometers away from and surround the Discovery Focus area, the basis of Black Pine's maiden resource estimate due out in Q1/21. Four of these drill tested regions showed prospectivity, Thompson noted and summarized the results from each. They are the:
1) F zone: Liberty Gold purports that this area of mineralization, with a 600 meter strike, runs parallel to the D-1 zone. The highlight assay from F is 62.5 meters (62.5m) of 0.64 grams per ton gold (0.64 g/t Au) starting at 40 meters. Mineralization is thoroughly oxidized, based on its high cyanide solubility on testing.
2) Rangefront zone: This is an area, 500 meters by 250 meters in size, that remains open in all directions. It yielded 36.6 meters of 0.76 g/t Au from 93 meters. Mineralization there shows high cyanide solubility.
3) M zone: The highlight intercept from this 250 meters by 80 meter area is 25.9m grading 2 g/t Au starting at 126.5 meters. Mineralization, which remains open in all directions, has high cyanide solubility at higher elevations and low solubility at lower elevations.
4) Southwest Extension: This zone is in an area where there is a large gold-in-soil anomaly but drilling has not been done, southwest of the historical CD and I Pit complex. In the Southwest Extension the drill bit encountered 15.2m of 0.58 g/t Au from surface. Cyanide solubility of the mineralization is high.
The J zone is an area about 250 meters from the historical A Pit and the D-2 zone. "The highlight intercept of 50.3 m @ 0.97 g/t Au from 18.3 m is encouraging, though reduced cyanide solubility should be noted," the analyst stated.
Liberty Gold will focus on the first four targets in its 2021 drill program, Thompson relayed. As for the company's 2020 campaign, which included infill, resource and regional drilling, although it is finished, the final 48 assays are pending.
PI Financial has a Buy rating and a CA$2.80 per share target price on Liberty Gold, the stock of which is currently trading at about CA$1.67 per share.[NLINSERT]
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