Liberty Gold And Black Pine

Liberty Gold And Black Pine

Liberty Gold (TSX – LGD) announced earlier this week that it received approval for its plan of operations at the Black Pine project in southern Idaho.  This plan allows for up to 370 drill pads and Liberty is already planning to drill 16,000-20,000 meters over 80-100 holes in 2019.

With a nice PEA in hand, Goldstrike is Liberty’s flagship project but by the end of 2019, Black Pine will be fighting for top spot.  Liberty, through some good fortune, came across a huge amount of drill data from a previous operator.  All in all, they spent the last 2 years compiling a 3D model of some +1800 historical drill holes at Black Pine – with most no deeper than 92 meters and most ending in gold mineralization.  From the 3D model, Liberty has identified a 12 square kilometer oxide gold system in a receptive carbonate package – currently, with no sulphides to speak of.

From the 3D model, it’s not too difficult to imagine 3-5 million ounces of gold in 1 super pit (or possibly 2 larger pits).  As we know, big + shallow + oxide = long mine life and cheap to produce.

The team at Liberty Gold and Oxygen Capital have a proven track record of finding accretive projects, advancing them through the value chain, and then selling them.  With Black Pine, they have a change of control project that could fetch hundreds of millions in the right market.  I’m looking forward to a new resource estimate at Black Pine.

Philip O'Neill
Philip O'Neill
poneill@mp1capital.com