Libero Copper and Gold Corp. (LBC:TSX.V; LBCMF:OTCQB) has made encouraging findings through recent work at its Mocoa copper-molybdenum project in Colombia, reported Red Cloud Securities analyst Taylor Combaluzier in a Feb. 8 research note.
"Additional discoveries and resource expansion at Mocoa are two factors we believe are key to a potential rerating of Libero's stock price," Combaluzier commented.
Potential return on investment
The analyst also reported that Red Cloud adjusted its estimates on Libero to reflect the recently closed roughly $1.9 million financing. This resulted in a new target price of CA$0.95 per share, down from CA$1.40 per share. The new target accounts for share dilution and the company's new cash position.
Libero is currently trading at about CA$0.18 per share, multiples below the target price, thus the implied return potential for investors is significant. According to Red Cloud, the exploration company is a Buy.
Signs of more mineralization
In its soil sampling, prospecting and mapping efforts undertaken in 2022, the British Columbia-based mining firm collected 928 rock samples and 694 soil auger samples at Mocoa. In the outcrop, the company identified additional areas of leached cap, some extending in three directions away from the Mocoa deposit and some located 2,000 meters (2,000m) southeast of it.
This "suggests there could be similar porphyry copper-molybdenum mineralization beneath them as is found at the Mocoa deposit," the analyst wrote. "This further supports the thesis that Mocoa could potentially be a clustered porphyry system and be larger than currently defined as suggested by previous alteration and geophysical studies."
Also of note, Combaluzier relayed, Libero defined a large, soil geochemical anomaly, about 2 kilometers long and 800–1,000m wide "that coincides with the Mocoa deposit." The company discovered high molybdenum values south of Mocoa and elevated copper values east of it.
"This anomaly expands the footprint and potential size of the deposit outside the forest reserve," added Combaluzier.
Access road reduces costs
In other news, the minerals explorer finished building a 2,100m access road to Mocoa, so that equipment and supplies now may be delivered via truck versus helicopter, noted Combaluzier. This should benefit the balance sheet, and the route supports the development plans of Monclar, the local community.
"We view this positively as it should directly lower Libero's cost of drilling," wrote Combaluzier.
What to watch for
Near-term catalysts for Libero include additional results of field work at Mocoa; most assays from the sample program remain pending. Receipt of drill permits for Esperanza and a drilling restart at Mocoa also could move the stock upward.
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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.
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Disclosures and Disclaimers, Red Cloud Securities Inc., Libero Copper & Gold Corp., February 8, 2023
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