Testing Shows 80% Gold Recoveries, ROM Heap-Leach Processing Potential at Idaho Project

Source: Streetwise Reports   11/02/2021

Liberty Gold’s “upcoming preliminary economic assessment on Black Pine, along with ongoing drilling updates, may represent meaningful catalysts to spur a rerate opportunity,” noted a Haywood Securities report.

In an Oct. 27 research note, Haywood Securities analyst Geordie Mark reported that recent metallurgical test results indicated that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) could use run-of-mine heap-leach processing of the ore it mines at its Black Pine project.

This method “would simplify operations and streamline initial capex deployment,” Mark added.

He reviewed the findings from the completed phase three metallurgical work, which further derisks the project. Mark highlighted that on testing, gold recoveries averaged about 80%, in line with Haywood’s estimate. This average was derived from a total of 45 conducted column tests that returned gold recoveries ranging from 44.5% to 94.8%. Average recoveries are consistent with average head grade.

“Importantly, results show relatively fast recovery times of the initial 80% of the recoverable gold in 10 days, which for us translates to good bench cycle rate potential,” wrote Mark.

Liberty Gold continues its metallurgical program with a fourth phase. It will comprise 15 tests using PQ sized core material with gold grades between 0.1 and 0.2 grams per ton, “an important facet to examine when looking to project life-of-mine cutoff grades,” the analyst noted.

“Importantly, results show relatively fast recovery times of the initial 80% of the recoverable gold in 10 days, which for us translates to good bench cycle rate potential.” 

Haywood rates Liberty Gold Buy and assigns it a CA$2.75 per share target price, “an attractive valuation,” according to Mark. In comparison, the explorer is currently trading at about CA$1.23 per share.

Looking forward, Mark wrote, “We await the upcoming preliminary economic assessment on Black Pine (due Q4/21), which, along with ongoing drilling updates, may represent meaningful catalysts to spur a rerate opportunity.”

Also, Haywood believes Liberty Gold is a takeover target, particularly because of its oxide gold projects and relative valuation.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Liberty Gold. Click here for important disclosures about sponsor fees. 
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Liberty Gold, a company mentioned in this article.

Disclosures from Haywood Securities, Inc., Liberty Gold Corp., Exploration Update, Oct. 27, 2021

I, Geordie Mark, hereby express 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 compensation was, is, or will be directly or indirectly related to the specific recommendations. 

Haywood Securities, Inc. has reviewed lead projects of K92 Mining Inc., Liberty Gold Corp., Osisko Mining Corp., and Pure Gold Mining Inc. 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 comanaged or participated as selling group in a public offering of securities for Osisko Mining Corp. and Pure Gold Mining Inc. in the past 12 months.

( Companies Mentioned: LGD:TSX; LGDTF:OTCQB, )