Haywood Capital Markets analyst Geordie Mark reported in an April 6 research note that the firm is reiterating its "Buy" rating on Liberty Gold Corp. (LGD:TSX) ahead of the company's maiden resource report for its Black Pine Gold Project in southern Idaho, which expected to be completed within a few weeks.
The analyst explained that Liberty Gold provided a resource update regarding its TV Tower project located in western Turkey. The report advised that Liberty owns approximately 63% of TV Tower, along with Tech Resources Ltd. (TECH.A/TECH.B:TSX) which owns the remaining 37%. The analyst pointed out that an updated NI-43-101 technical report for TV Tower's existing KCD deposit increased the resource three-fold, adding about 1.7 million ounces (Moz) gold and 670 million pounds (Mlb) copper to the total estimated resource.
The analyst stated that this secondary asset base has become a meaningful host of resource value due to the property's favorable metallurgical profile, making it a candidate for heap-leach recovery. Haywood indicated that it very conservatively values the North and South TV Tower projects at US$13 million. "With no further drilling planned on these assets over the near-term, we anticipate management will likely look to monetize value to support undiluted cash balances as it continues to undertake drilling at the primary Black Pine project," Mark wrote.
The analyst noted that the Black Pine Gold Project remains the key focus for Liberty Gold. Starting this month, Liberty plans to commence 56,000 meters of additional drilling at the high-grade Black Pine core area on target sites mostly not included in either the maiden resource or the PEA scheduled for completion in Q3/21.
Haywood Capital commented that for valuation purposes it estimates the total Black Pine resource at 2 Moz gold.
Haywood Capital Markets currently has a "Buy" rating for Liberty Gold with a target price of CA$3.15/share. The company's shares are trading at around CA$1.52.
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Disclosures from Haywood Securities, Liberty Gold Corp., Research Report, April 6, 2021
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
▪ Haywood Securities, Inc. has reviewed lead projects of Liberty Gold Corp. and a portion of the expenses for this travel 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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