New Drill Results Could Expand Gold Resource at Idaho Project
Research Report

Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) released a large batch of positive, 2023 drill results from its Black Pine oxide gold project in Idaho, reported Canaccord Genuity analyst Peter Bell in an Oct. 31 research note.

"Overall, we believe these results bode well for the upcoming prefeasibility [study] on Black Pine and look forward [to] the remaining assays from the 2023 drill program," Bell wrote.

573% return possible

Canaccord reiterated its CA$1.75 per share target price on the Canadian junior developer, currently trading at about CA$0.26 per share, noted Bell.

The difference between these two prices implies a substantial return for investors, of 573%.

Liberty remains a Speculative Buy.

Growing the resource

Newly reported results are from 39 holes drilled as part of Liberty's 30,000 meter (30,000m) program this year aimed at expanding the resource ahead of the Black Pine prefeasibility study expected in 2024, Bell reported. Results are specifically from three zones: Back Range, Rangefront and M.

Bell presented these highlights from the new set of drill results, one from each of the targeted zones:

• 0.5 g/t Au over 32m, including 1.26 g/t Au over 3m in the Rangefront zone (hole LBP986)
• 0.63 g/t Au over 18.3m, including 1.24 g/t Au over 6.1m in the M zone (hole LBP987)
• 0.42 g/t Au over 68.6m, including 1.08 g/t Au over 3m in the Back Range zone (hole LBP1005)

"Today's results have potential to incrementally increase the resource size," Bell wrote, at each of these deposits. He also noted that while the grades are similar to 0.5 grams per ton gold (0.5 g/t Au) grade of the existing resource, they "highlight open gold zones."

Of the three zones, Rangefront is particularly significant, Bell added, given its nearness to the proposed processing area and given its above average recoveries.