In a Jan. 13 research note, Haywood Capital Markets analyst Geordie Mark reported that infill drill results show "grade continuity and high recovery potential" at Liberty Gold Corp.'s (LGD:TSX; LGDTF:OTCQB) flagship Black Pine project.
Mark reviewed the new results, which are of five large-diameter core drill holes from three mineralized zones at Black Pine: D-1 Southeast Extension, D-2 and D-3. These holes were drilled primarily to support metallurgical testing.
Highlights include results from hole LBP-214C drilled in zone D-2: 47.4 meters (47.4m) of 3.32 grams per ton gold (3.32 g/t Au), including 5.8m of 12.5 g/t Au. Cyanide solubility testing of these intervals indicated gold recoveries of 91% and 99%, respectively.
Hole LBP-222C, drilled in zone D-3, returned 8.1m of 3.62 g/t Au from 244m downhole and 54.2m of 1.27 g/t Au from 275m downhole. The latter interval demonstrated a 96% gold recovery.
"The results outlined encouraging intersections from three separate zones within the core Black Pine area, with two holes outlining favorable oxide gold mineralization in newly identified areas from the 2020 campaign," Mark noted.
The results support the potential for grade continuity and thickness and interval stacking at Black Pine, the analyst stated. Also, the oxidized intervals show "potential amenability to simple heap-leach processing.
Mark relayed that Liberty Gold plans a third phase of metallurgical testing, on material from the CE and E historical pits and the areas tested in phase 2.
Potential upcoming catalysts for Liberty Gold include ongoing drill results from Black Pine and TV Tower along with a Black Pine resource update, expected in mid-H1/21.
"Liberty Gold is well positioned for resource growth in the near term and given its attractive valuation, remains a highly prospective acquisition target through downstream mergers and acquisitions activity," Mark concluded.
Haywood has a Buy rating and a CA$3.15 per share target price on the company. Its current share price is about CA$1.64.
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Disclosures from Haywood Securities, Liberty Gold Corp., Research Report, January 13, 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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