Gold Explorer Makes Big Breakthrough at Idaho Project

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Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) announced the results from its recently concluded sonic drilling program on the legacy heap leach pad (L-HLP) at its flagship Black Pine Oxide Gold Project in southeastern Idaho.

The drill hole assays confirm the presence of residual, cyanide-soluble gold in the legacy heap, aligning with internal expectations, the company said in an August 27 release.

This presents a dual opportunity to recover additional gold ounces while repurposing the legacy material for constructing the new heap leach pad (N-HLP) at Black Pine.

"The results confirm the opportunity to turn a legacy mining feature into a strategic win for Liberty Gold and the Black Pine Project," President and Chief Executive Officer Jon Gilligan said. "Whilst the gold grades are naturally low due to previous processing, it appears there is sufficient recoverable gold to cover the costs of rehandling and reprocessing, which makes this a strong value proposition as we move the heap to unlock the resource and reserve potential."

Relocating the L-HLP would also enhance the Rangefront open pit design, which in the Preliminary Feasibility Study included a 50-meter setback from the toe of the L-HLP. Eliminating this setback could provide mining access to an estimated ~250,000 ounces of oxide gold mineralization currently defined as a resource on the northern margin of the Rangefront deposit, the company said.

Additionally, moving the L-HLP would create a valuable near-pit exploration opportunity, as historical drilling results suggest oxide gold mineralization continues beneath the legacy heap.

"A resource estimate for the L-HLP is underway and samples are being prepared for metallurgical testing as part of the feasibility program," Liberty said in the release.

A company also offers a dynamic 3D view of the sonic drill results and the implications for the significant value unlock.

Highlights of the program included:

• The 24-hole, 1,400-meter sonic drilling program was completed across the ~31-million-tonne legacy heap.
• Assay results indicate residual gold grades supportive of potential economic reprocessing, with individual samples ranging from 0.06 to 1.18 grams per tonne (g/t) gold (Au), with the highest grades near the surface.
• There is a potential to reduce construction capital by reusing the legacy heap material, located close to the site of the N-HLP, as an over-liner.
• Relocating this material provides a significant opportunity for near-pit Resource and Reserve growth at the Rangefront deposit.

An August 27 flash note update by Analyst Lauren McConnell for Paradigm Capital noted that the drilling provides a "potential economic and strategic boost" for the company.

"In the 2024 PFS, the Rangefront pit design required a 50m setback from the toe of the L-HLP," she wrote. "This limited access to ~250Koz of oxide gold currently classified as resource on the pit’s northern margin . . .  Relocating the heap eliminates this restriction, enabling potential reserve conversion of these ounces."

McConnell continued, "For investors, this update reinforces Black Pine's status as a large, flexible oxide system in the Great Basin. Near-term catalysts will be metallurgical results from the heap material and updated mine optimization studies. Success here could modestly lift project NPV while also strengthening the investment case for eventual M&A interest, given the district-scale profile and oxide heap-leach optionality."

What's Next?

Next steps for the company include the resource estimation (the company said preliminary work is underway), metallurgical testing to assess leach-recoverable gold from the L-HLP and evaluate the material’s geotechnical suitability as an over-liner replacement, and mine planning, the company said.

Once metallurgical test work is completed and confirms expected leach characteristics, the Rangefront open pit optimization will be updated to remove the 50-meter setback. Mine plans will be developed for the L-HLP itself, considering various mining and processing rates, costs, and production. The goal is to incorporate L-HLP material into the overall feasibility production schedule to potentially add additional ounces to the reserves.

Liberty Gold also said it is in ongoing discussions with relevant state and federal agencies regarding both the ongoing L-HLP evaluation and ultimately, reclamation and closure following cessation of mining.

Moving Old Pad Will Open Exploration Areas

National Bank of Canada Financial Markets Analyst Rabi Nizami's research flash note on August 27 noted that the assay results "confirm the presence of partially recoverable gold in the legacy heap leach pad, portions of which could be reprocessed, or otherwise repurposed as construction material for the future new leach pad."

Nizami continued, "Moreover, the legacy pad overlies a portion of the current Rangefront Zone resource pit which could be unlocked (~250 koz) once the legacy pad is relocated."

The analyst rated the stock Outperform with a price target of CA$0.70, a more than 84% return on its price at the time of writing.

The 30 million tonne legacy heap leach was operated from 1991 to 1997, producing around 435,000 ounces with an average recovery rate of 65%, and was rinsed and reclaimed after production ceased, Nizami noted. A resource estimate on the legacy pad is underway, along with metallurgical testing. Based on historical tonnage, production, and recovery data, it is implied that approximately 668,000 ounces of ore grading about 0.68 grams per tonne gold (g/t Au) were initially placed on the pad, with around 230,000 ounces remaining unrecovered today at approximately 0.24 g/t. From the sonic drilling results released Wednesday, the firm calculated a weighted average grade of 0.19 g/t Au over an average length of 58 meters from the surface. The average cyanide-soluble gold to total assayed gold ratio was 49%.

Ker maintained the firm's Buy rating with a CA$1 per share target price, a more than 163% increase.

"Once the metallurgical testing is complete, LGD will look to incorporate the HL relocation into the mine planning for the project and evaluate permitting discussions with state and federal agencies regarding the relocation," the analyst noted.

Canaccord Genuity Capital Markets Analyst Peter Bell noted in an August 27 updated research note that his firm believes the results are positive "in three ways."

"The revenue from this gold pays for moving the old heap leach material, the removal of the legacy pad allows access to mine other ounces, and finally, the removal will allow exploration drilling under the pad, wrote Bell, who rated the stock a Speculative Buy with a CA$4.25 per share price target — that's a more than 1,000% return from the price of CA$0.38 per share when he wrote the note.

"While our focus is on the main heap leachable resource at Black Pine, we believe the results reported this morning highlight an opportunity for Liberty," Bell wrote. "Though gold grades reported are much lower than the 0.32 g/t Au (life of mine, or LOM) outlined in the Black Pine PFS, the material should more than offset the costs of moving it."

The relocation of the legacy heap would also improve the Rangefront open pit design by removing the 50-meter setback limit from the toe of the legacy pad.

"This would provide mining access to an estimated ~250,000 ounces of oxide gold on the northern margin of the Rangefront deposit," the analyst noted. "Finally, the area under the old pad is prospective, so moving it will open up new exploration areas."

Analyst Phil Ker of Ventum Capital Markets, also writing on August 27, said, "We do see the potential for enough recoverable gold to cover the rehandling and reprocessing costs, unlocking further optionality and value at the Rangefront pit."

Ker maintained the firm's Buy rating with a CA$1 per share target price, a more than 163% increase.

"Liberty is ongoing with its derisking initiatives at Black Pine, with preliminary work now underway to establish a resource at the legacy heap leach pad, in addition to metallurgical test work to identify its suitability as overliner material at the new heap leach pad," the analyst wrote. "If results prove positive, Liberty will then begin further optimization at the Rangefront pit, removing the current 50-meter setback from the legacy heap leach pad. With an updated resource estimate and the spin-out of the Goldstrike/Antimony Ridge project pegged for Q4/25, we continue to anticipate a busy H2/25 for LGD."

The Catalyst: Markets Watching the Fed

Gold prices edged slightly lower on Wednesday after reaching a more than two-week high, as U.S. President Donald Trump's efforts to dismiss Federal Reserve Governor Lisa Cook raised fresh concerns about the central bank's independence, reported Peter Nurse for Investing.com on August 27.

Gold's rally at the beginning of the week was driven by traders seeking a safe haven amid the potential for a prolonged legal battle between Trump and Cook, Nurse wrote. Cook has stated she will not resign and plans to contest her attempted dismissal in court, arguing that Trump lacks the grounds to remove her. The Fed has also supported this stance.

However, Trump's attempts to fire Cook have raised broader concerns about political interference in the Fed, which has traditionally operated independently from the government. Earlier this year, Trump also threatened to dismiss Chair Jerome Powell, whom he has repeatedly criticized for not lowering interest rates further. Replacing Cook with his own nominee could give Trump a potential majority on the Fed’s seven-member rate-setting board, enabling him to push for lower interest rates.

Many still below that gold's bull market will rise even higher. Florian Grummes shared with Jeremy Szafron of Kitco News on July 29 that a significant breakout is on the horizon, and those who remain patient will see rewards.

"We're in a crack-up boom overall," stated Grummes, managing director of Midas Touch Consulting, during the interview with Kitco News. "That means everything will move higher because they destroy the purchasing power of your fiat money — whether it's the euro, the dollar, or the Canadian dollar."

Ownership and Share Structure

According to Refinitiv, about 4% of the company is with management and insiders and about 28% is with institutions. The rest is with retail investors.

Top shareholders include Van Eck and Associates Corp. with 11.64%, Franklin Advisers Inc. with 8.76%, Konwave AG with 3.25%, Merk Investments LLC with 2.74%, and Calvin Everett with 2.41%.

Its market cap is approximately CA$198.01 million, with about 455.2 million shares outstanding. The company trades in a 52-week range from CA$0.25 to CA$0.43​.