In a March 24 research note, Haywood Securities analyst Geordie Mark reported that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) released the final results of its 2020 reverse circulation drill campaign at Black Pine and is now focused on completing a maiden resource estimate for the project, expected in mid-2021.
"We continue to be encouraged by ongoing exploration success at Black Pine and view the company to be well positioned for resource growth over the near term," Mark wrote.
As for the Black Pine resource estimate, Liberty Gold already contracted two firms, RESPEC and SLR Consulting, to help prepare it, noted Mark.
The analyst reviewed the drill results, which are from the last 35 holes placed in the D-1, D-2, D-3, Southeast Extension, M and Rangefront zones. The entire program consisted of 170 holes over about 46,000 meters (46,000m).
Highlights, Mark indicated, were from M and Rangefront. M continued to show shallow oxide gold in stepout holes to the southwest. For instance, hole LBP-256 returned 38.1m of 1.26 grams per ton gold (1.26 g/t Au) at 90m downhole. Liberty Gold plans to drill the M zone further this year.
Rangefront showed oxide gold at shallow depths to the southeast and northeast, such as 12.2m of 0.41 g/t Au at 62.5m downhole in LBP-276. Hole LBP-235 demonstrated 9.1m of 2.35 g/t Au at 244m downhole.
With Liberty Gold's amended plan of operations, the company now has access, in part, to areas between the M and Rangefront zones.
New drill results also indicated that D-3 returned high-grade intercepts at depth and D-1 and D-2 continue to demonstrate growth potential.
"Liberty Gold has demonstrated further confirmation of the targeted thesis of widespread oxide gold mineralization within the core Black Pine area and extensions continuing to demonstrate grade continuity and favorable heap-leach compatible metallurgy," Mark wrote.
The company plans to start additional drilling at Black Pine next month, to include 48,000m of reverse circulation and 8,000m of diamond drilling in about 200 holes. Liberty Gold will incorporate only a part of the findings from this upcoming campaign into the resource estimate and subsequent preliminary economic assessment expected in Q3/21. Also anticipated in the third quarter are results of the phase 3 metallurgical testing.
"Ahead of such catalysts, we highlight Liberty Gold's attractive valuation of 0.50x price:net asset value, predicated primarily on our 2,000,000 ounce gold resource estimate embedded in our Black Pine model," Mark wrote.
The gold explorer is now trading at about CA$1.56 per share, and Haywood's target price on it is CA$3.15 per share. Haywood rates Liberty Gold Buy.
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