In a Dec. 2 research note, Haywood analyst Geordie Mark reported that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) "continues to release a steady stream of positive drill results from its Black Pine property ahead of the upcoming maiden resource estimate targeted for mid-H1/20."
He noted, too, that the ongoing success at its flagship project has driven Liberty to be one of the stronger performing development companies in 2020. Year to date, its stock is up about 54%. Given its attractive valuation, the British Columbia-based explorer "remains a highly prospective acquisition target through downstream mergers and acquisitions activity," Mark wrote.
The analyst reviewed the recently reported drill results, which are from infill drilling in Black Pine's D-3 zone and stepout drilling to the southeast in its D-1 zone. Generally, the findings confirmed that mineralization in both zones showed grade and grade thickness continuity throughout the system, favorable metallurgy and expansion potential in multiple directions.
"We note that drilling to date, and in particular at the D3 Zone, supports the case for further resource volume expansion potential ahead of the maiden pit-constrained resource estimate at Black Pine due in the coming months," Mark wrote.
D-3 result highlights came from two holes. LBP-206 returned six intervals of oxide mineralization exceeding a cutoff grade of 0.2 grams per ton gold (0.2 g/t Au) from surface to 328 meters (328m) downhole. The cyanide solubility of the gold in these intervals ranged from 91–98%. One specific interval was 56.4m of 1.51 g/t gold, 92% of which was cyanide soluble.
Hole LBP-208 demonstrated 42.7m of 1.25 g/t Au that was 84% cyanide soluble. The solubility of other intervals ranged from 84–100%.
"We are encouraged by the results, presented to date, at the emerging D-3 zone," Mark commented. "This D-3 zone is interpreted to underlie two-thirds of the southern gold mineralized 'stacked' system at Black Pine and given the strata-bound nature of this Carlin-type gold mineralization, potentially serves to increase the target resource volume," Mark commented.
As for drill results from the D-1 zone, they showed 12.2m of 1.4 g/t Au from 72m downhole, including 6.1m of 1.63 g/t Au from 78m downhole. Estimated cyanide solubility of gold there was about 100%.
Haywood has a CA$3.15 per share target price on the explorer, which it rates Buy. Liberty's current share price is about CA$1.59.
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Disclosures from Haywood Securities, Liberty Gold Corp., Research Report, December 2, 2019
Analyst Certification: I, Geordie Mark, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Important Disclosures
Important Disclosures:
▪ Haywood Securities, Inc. has reviewed lead projects of Liberty Gold Corp. and a portion of the expenses for this travel may have been reimbursed by the issuer.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.
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