keeps adding and upgrading ounces at its Black Pine oxide gold project in Idaho ahead of the prefeasibility study (PFS) expected next year, reported PI Financial analyst Chris Thompson in an October 31 research note.
"With numerous zones of mineralization open, we anticipate Liberty to continue expanding [the] mineralized footprint whilst upgrading ounces with infill drilling," Thompson wrote.
227% Return Projected
Thompson noted Liberty has a price now of about CA$0.26 per share and the potential for it to move up. In fact, PI's target price on the Canadian gold explorer is CA$0.85 per share.
"With Liberty trading at about 0.14 times net asset value, we see significant value upside as it advances Black Pine to a preliminary economic assessment/PFS stage of development," Thompson wrote.
The difference between the current share price and the target price reflects a material return for investors of 277%.
PI rates Liberty Buy.
New Drill Data
Thompson summarized and provided highlights of the just-released results from Black Pine. Data are from 39 holes spread over three zones: Back Range, Rangefront, and M.
Overall, the results were positive. All of the zones returned gold mineralization and remain targets for additional drilling.
Back Range: In this zone, Liberty tested new areas of mineralization to the north and west. Among the results, hole LBP1005 stood out. A notable intercept from it was:
- 0.42 grams per ton gold (0.42 g/t Au) over 68.6 meters (68.6m) starting from 0m, including 1.08 g/t Au over 3m
"The northernmost hole (LBP1005) returned impressive grades, and mineralization remains open," Thompson wrote.
Given these results, Liberty plans future stepout drilling to expand the mineralization around LBP1005.
Rangefront: Of the 39 holes on which Liberty just reported data, 15 were placed in this zone. They confirmed that the high-grade gold mineralization discovered recently extends laterally. The new infill drill data from Rangefront will go towards converting Inferred ounces to Indicated ones.
"This zone remains a key target for 2024 resource expansion drilling," wrote Thompson.
M: Results from this zone outlined an 800m by 400m area of mineralization containing grades "notably higher" than the average grade of the existing resource, Thompson relayed. Highlight intercepts included:
- 0.62 g/t Au over 30.5m, including 1.23 g/t Au over 1.5m (hole LBP982)
- 0.63 g/t Au over 18.3m, including 1.24 g/t Au over 6.1m (hole LBP987)
"Liberty sees the M zone as offering future potential for early gold production at heightened grades," Thompson reported.
PFS Steps Taken
In addition to drilling, Liberty has been doing other work to support the upcoming PFS. Recently, the company submitted the mining pre-plan of operations for Black Pine. It also contracted the services of an engineer to lead the study.
What To Watch For
Investors should expect continuing news from Liberty as it continues advancing Black Pine.
By year-end, the company plans to complete and announce an updated resource estimate for the project. The ensuing PFS is slated for completion next year.
|Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
- Liberty Gold is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
For additional disclosures, please click here.
Disclosures for PI Financial, Liberty Gold Corp., October 31, 2023
Analyst Certification I, Chris Thompson, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.
Research Disclosures: PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company.
General Disclosure The affiliates of PI Financial Corp. are PI Financial (US) Corp., PI Financial Services Corp., and PI Capital Corp. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts and all other Research staff are not directly compensated for specific Investment Banking transactions. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of PI Financial Corp. PI Financial Corp.’s policies and procedures regarding dissemination of research, stock rating and target price changes can be reviewed on our corporate website at www.pifinancial.com (Research: Research and Conflict Disclosure). The attached summarizes PI’s analysts review of the material operations of the attached company(s)