In a Feb. 18 research note, Haywood Securities analyst Geordie Mark reported that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) received approval of the amendment to its flagship Black Pine project's plan of operations, allowing the company "to go where no drill has gone before."
Mark specified exactly how the amendment does just that.
It adds another 4.6 square kilometers (4.6 sq km) to the explorable Black Pine project area, taking the total to 11.9 sq km, he wrote. It expands road access by another 15.3 miles, increasing the number to 56.7 miles. It allows access to the areas between the Rangefront and M zones to the east of the primary area of focus and between the F and J zones to the west, thereby connecting the Black Pine system on a broader scale. The amendment also adds 154 permitted new drill pad sites to the existing 442. Finally, it allows Liberty to access well water that was used historically.
Mark also presented the highlights of recent drilling at Black Pine, done to support metallurgical testing.
Infill drilling encountered noteworthy intersections of higher grade oxide gold mineralization, he noted, "supporting the potential for grade continuity and (and grade thickness) and interval stacking at Black Pine, with oxidized intervals also showing potential amenability to simple heap-leach processing."
Highlight hole LBP-214C demonstrated the latter, returning 3.32 grams per ton gold (3.32 g/t) over 47.4 meters (47.4m), including 12.5 g/t gold over 5.8m. Those two intervals showed weighted average cyanide-soluble gold of 91% and 90%, respectively.
"We anticipate upcoming results will provide further confirmation of the targeted thesis of gold mineralization within the core Black Pine area, with gold mineralization continuing to demonstrate grade continuity and favorable heap leach-compatible metallurgy," commented Mark.
He listed the potential stock moving events expected to happen this year at Black Pine.
Near term is the release of pending 2020 drill results, he indicated. In Q2/21, Liberty should complete a maiden resource estimate. In April, the explorer plans to start a two-pronged drill program, 48,000m of reverse circulation drilling and 8,000m of diamond drilling, followed in Q3/21 by starting work on a preliminary economic assessment. Finally, also in the third quarter, results of the phase 3 metallurgical testing should be available.
Mark concluded that "Liberty is well positioned for resource growth in the near term and given its attractive valuation, remains a highly prospective acquisition target through downstream mergers and acquisitions activity."
Haywood recommends investors accumulate shares of Liberty now and, thus, rates it Buy. Liberty stock is trading at about CA$1.54 per share, and Haywood's target price on the company is CA$3.15 per share.
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