Don't Forget To
Rate This Article

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


New Drill Results From Idaho Point to Gold Resource Growth
Research Report

Share on Stocktwits


The explorer's ongoing exploration results at this project continue to be encouraging ahead of a mineral resource update expected next year, noted a Haywood Securities report.

Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) announced that 13 holes drilled in the M zone at its Black Pine project returned shallow, high-grade gold mineralization, which has positive implications for a future resource and, ultimately, mine plan, reported Haywood Securities analyst Dr. Geordie Mark in a November 8, 2022 research note.

"We see the M Zone resources easily growing, as well as many of the other areas on Black Pine (e.g.,) Rangefront), which highlights the growing mass of exploitable gold that is required to elevate the potential scale of a future open-pit, heap-leach operation," Mark wrote.

Key Points About the Stock

Mark reiterated Haywood's Buy rating and target price of CA$2 per share on Liberty. The latter represents a projected return of 471%, as the Canadian mining explorer's current share price is about CA$0.38.

"Liberty Gold shares continue to trade at an attractive valuation," Mark wrote.

Upcoming events that could increase Liberty's share price, Mark indicated, are an ongoing stream, over the next two quarters, of drill results from its 65,000-meter (65,000m) program at Black Pine in Idaho, still in progress.

Subsequent catalysts are a Black Pine resource update and preliminary economic assessment.

"Liberty Gold shares continue to trade at an attractive valuation, particularly given the incremental derisking being demonstrated through ongoing drilling on Black Pine that will inform [the] resource update in 2023," Mark wrote, "which will likely expand given how open the systems are currently."

Interpretation of the Drill Results

This newly reported batch of Black Pine drill results for 13 holes in the M zone has several implications, Mark noted. One is the mineralized system remains open both along strike for 750m-plus and to the northwest.

The second is there likely is lateral continuity of gold mineralization between the pit-defined resources.

The third is this intra-pit mineralization sits at depths equal to or less than those of the pit-constrained resources. This suggests, Mark wrote, resources could be grown by combining them into one pit, a move that would increase the resource's total mass and boost the average grade at a lower waste-to-ore strip ratio.

Three newly reported holes demonstrate the shallow depths and grades well above the average grade of the 2021 M zone global resource of about 0.62 grams per ton (0.62 g/t) gold.

  • LBP688: 36.6m of 1.53 g/t gold from 79.2m
  • LBP715: 57.9m of 1.4 g/t gold from 76.2m
  • LBP717: 15.2m of 2.46 g/t gold from 89.9m

More drilling in the M zone is needed, Mark pointed out, to fully determine "the spatial distribution, grade and metallurgical characteristics" of the "predominantly oxidized and strata-bound gold mineralization" there. Three drill rigs remain active in this zone and also in the Rangefront and Section 36 areas.

Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

1) Doresa Banning wrote 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 Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This 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. 

Disclosures For Haywood Captial Markets, Liberty Gold Corp., November 8, 2022

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:

Of the companies included in the report the following Important Disclosures apply:

Haywood Securities, Inc. has reviewed lead projects of this company and a portion of the expenses for this travel may have been reimbursed by the issuer.

Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for this company in the past 12 months.

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