Liberty Gold Corp.'s (LGD:TSX; LGDTF:OTCQB) newest set of drill results, from the F zone at its flagship, Carlin-style Black Pine project, showed shallow gold is present starting from the surface, reported Haywood Securities analyst Geordie Mark in an August 31, 2022 research note.
"Drilling on Black Pine proves that there appears to be no end in sight to this oxide gold mineralized system," Mark wrote.
At the same time, Liberty is now trading at about CA$0.425 per share, an "attractive valuation," according to Mark, especially in light of the derisking taking place through continued drilling at the Idaho property. The difference between the current share price of the mining company and Haywood's CA$2.30 per share target price on it implies a potential 441% return for investors.
"We recommend accumulating shares at current levels," noted Mark.
As for recent Black Pine drill results, Mark explained, they show a zone of mineralization about 750 meters (750m) long linking the CD and Discovery zones. Higher grade gold is present in shallow intervals to the north of the CD resource pit, as indicated by hole LBP657, returning 16.8m of 1.03 g/t gold from surface. Hole LBP662 demonstrated 30.5m of 0.97 g/t gold starting at surface, including 6.1m of 2.65 g/t gold starting at 24.4m downhole.
This batch of results, Mark noted, complements the entire set of data Liberty has on the project. They indicate potential continuity of mineralization between several resource pits as well as expansion of mineralization at the broader margins, to be determined with further drilling in the F, M, and E Zones and the Rangefront focus area.
Further, these new data likely will increase the existing resources, slated to be updated next year. Black Pine's mineralized system "still has legs to grow," Mark purported, even with a late 2022 cutoff date for drill results to be included in the update. Following the update, Liberty will complete a preliminary economic assessment. The release of each report will be a potential stock-moving catalyst.
Liberty is "well positioned for resource growth over the near term," Mark wrote.
Haywood has a Buy rating on the mining company.
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Disclosures For Haywood Capital Markets., Liberty Gold Corp., August 31, 2022
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.
General Disclosures: Haywood Securities Inc. has reviewed lead projects of this company and a portion of the expenses for this travel have been reimbursed by the issuer.
Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for this company in the past 12 months.
