Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) announced the results of three types of drilling done at its Goldstrike gold project in Utah, having completed its 2022 field season there, reported PI Financial analyst Chris Thompson in a Dec. 6 research note.
"Results from PQ core and reverse circulation holes support potential offered by Goldstrike as a small but potentially economically viable, heap-leach, oxide gold deposit," Thompson wrote.
The analyst presented the highlight results of the three sets of drilling recently carried out at Goldstrike.
PQ Core
Twelve holes were placed over 1,412 meters (1,412m). Highlight hole PGS863C returned 74.3m of 0.87 g/t gold (0.87 g/t Au), including 12.3m of 1.51 g/t Au in the Basin Area.
"The drill results continue to confirm the strong continuity of gold grade and deep oxidation profile," wrote Thompson.
"The majority of the core holes reflect thick intervals of oxide gold with good cyanide solubility at shallow depths," Thompson noted.
Reverse Circulation
It encompassed 100 resource definition and exploration holes over 8,453m. Hole PGS874, for instance, showed 24.4m of 1.75 g/t Au, including 10.7m of 3.52 g/t Au in the Main Area.
"The drill results continue to confirm the strong continuity of gold grade and deep oxidation profile," wrote Thompson.
Sonic
Liberty Gold completed 23 holes in the historic leach pads and surficial waste storage sites. Standout hole PGS891 returned 25.9m of 1.02 g/t Au, including 9.1m of 2.17 g/t Au.
"Results continued to demonstrate that the surficial materials contain oxide gold at above-anticipated cutoff grades," Thompson commented.
Derisking Efforts Planned
Looking ahead, Thompson noted, next year Liberty Gold plans to pursue securing a water supply and necessary permits for Goldstrike, both to derisk the project.
Thompson pointed out the surface rights at Goldstrike are currently owned by the federal Bureau of Land Management, but an initiative is underway to have them transferred to the state of Utah. The related bill is expected to be put before Congress in 2023. If Congress approves this SITLA Land Exchange, the permitting process for Goldstrike will require state versus federal approvals, which would likely "significantly derisk and reduce the time frame to permit mining and heap-leach operations at Goldstrike," wrote Thompson.
PI Financial has a Buy rating and a CA$1.10 per share target price on Liberty Gold, the current share price of which is about CA$0.46.
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PI Financial, Liberty Gold Corp., December 6, 2022
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.
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