Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Gold Explorer's 'Maiden Resource Sets Stage for Next Growth Phase,' Analyst Says
Research Report

Share on Stocktwits


A Haywood report noted Liberty Gold's Black Pine deposit is "capable of eventually supporting a multi-million-ounce low-cost, heap leach project in a tier-one jurisdiction."

In a July 16 research note, Haywood analyst Geordie Mark reported that Liberty Gold Corp.'s (LGD:TSX; LGDTF:OTCQB) just released maiden resource estimate "furnishes an initial proof of concept of the Black Pine deposit," and the company's ongoing exploration success there bodes well for expanding the resource via the current drill program.

The Black Pine resource, Mark relayed, consists of 105,100,000 tons (105.1 Mt) containing 1,715,000 ounces (1.715 Moz) of 0.51 grams per ton gold (0.51 g/t Au) in the Indicated category, and 31.2 Mt containing 370,000 ounces (370 Koz) of 0.37 g/t Au in the Inferred category, using a 0.20 g/t Au cutoff. Combined, these resources amount to 136.3 Mt containing 2.08 Moz Au at an average grade of about 0.5 g/t.

Using a higher cutoff of 0.50 g/t Au, the Indicated resource is 1.02 Moz Au at an average grade of 1.04 g/t, and the Inferred resource is 134 Koz Au at an average grade of 0.94 g/t.

The pit-constrained resource is 2.1 Moz Au at an average grade of 0.48 g/t or, at the higher 0.50 g/t Au cutoff, 1.2 Moz Au at an average grade of about 1.0 g/t.

"While the initial resource estimate came in below expectations on grade," Mark wrote, "we note ~75% of the posted resource ounces are carried within the Discovery zone, centered on the high grade oxide gold D-1, D-2, and D-3 areas, while a higher grade 0.5 g/t Au cut-off subset outlines a grade of ~1.0 g/t Au."

Mark wrote that potential for resource expansion exists given that the discovery zone remains open in all directions and at depth, and given the property's broad-scale anomalies at surface. Also, the maiden resource estimate includes only a portion of the 14 square kilometer mineralized system at Black Pine.

Liberty Gold has been drilling its current 52,000-meter drill campaign at Black Pine since April. Part of those efforts will drill test beyond the pit-constrained resource. Ounces defined there could be added to the existing resource following release of the imminent Black Pine preliminary economic assessment.

"We view [the Black Pine deposit as] capable of eventually supporting a multi-million-ounce low-cost, heap leach project in a tier-one jurisdiction," Mark wrote.

He also noted that metallurgical column testing showed "rapid" gold recoveries, 78% in phase one and 82% in phase two, "relatively insensitive to crush size." This means heap leach recovery would be easy and low cost. More metallurgical testing is being done, the results of which are expected this quarter, Q3/21.

Haywood updated its model on Liberty Gold and Black Pine, assuming a 3 Moz Au resource with a 0.50 g/t grade and production of about 20,000 tons per day via a heap leach process. After making these changes, Haywood maintained its Buy recommendation but lowered its target price on the gold explorer to CA$2.75 per share from CA$3.15. Liberty's current share price is about CA$1.27.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Liberty Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Liberty Gold, a company mentioned in this article.

Disclosures from Haywood Securities, Liberty Gold Corp., Research Report, July 16, 2021

Analyst Certification: I, Geordie Mark, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures
▪ Haywood Securities, Inc. has reviewed lead projects of Liberty Gold Corp. and a portion of the expenses for this travel have been reimbursed by the issuer.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

Research policy is available here.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe