Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) reported more encouraging drill results from the Back Range zone at its Black Pine oxide gold project in Idaho, reported PI Financial analyst Chris Thompson in a Jan. 18 research note.
"The Back Range zone continues to deliver high-grade material with good recoveries, shaping itself as a key zone in the Black Pine complex," Thompson wrote.
Potential return of 204%
Pi Financial reiterated its target price of CA$0.85 per share on the Canadian mining company, currently trading at about CA$0.28 per share, noted Thompson.
The return for investors, implied in the difference between these two prices, is material, at 204%.
Liberty Gold remains a Buy.
"With Liberty trading at about 0.15x net asset value, we see significant value upside as the company advances Black Pine to a preliminary economic assessment/prefeasibility stage of development," commented Thompson.
More positive data
Thompson reviewed the new results, of three core holes drilled in Black Pine's Back Range zone. He highlighted that they showed near-surface mineralization, strong grades and positive cyanide soluble assays.
As for the standout findings, hole LBP956C returned 43 meters (43m) of 1.66 grams per ton gold (1.66 g/t Au), including 12.4m of 4.04 g/t Au. Metals recovery was 74%.
Hole LBP968C demonstrated 22.9m of 3.74 g/t Au, including 5.4m of 6.36 g/t Au. Metals recovery was 87%.
"Additional drilling is warranted in the area to better understand the complex structural controls," wrote the analyst.
Changes to management
In other news, Thompson reported, Liberty's executive team underwent some changes.
Now, Cal Everett is the chief executive officer and Jon Gilligan is the president and chief operating officer, Thompson reported.
Near-term catalysts
This year is expected to be catalyst rich for Liberty and its Black Pine project, Thompson reported and indicated the events investors should watch for.
Results, currently pending, of eight core holes drilled in the J, M, Discovery Focus and Tallman Pit areas at Black Pine are expected to become available soon.
Expected in H1/24 is an updated mineral resource estimate for Black Pine. It will include results of the 38 holes drilled over 5,307m at the project last year as well as a new structural model, reported Thompson.
By H2/24, the company expects its fourth plan of operations to be approved. This would expand the drillable area by 36% and thereby allow Liberty to drill between the Back Range and main Discovery zones, a priority target.
Further, a prefeasibility study of Black Pine is due out in mid-2024.
| Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
