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Tuesday, Apr 16, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Liberty Gold reports increased revenue, updated resource estimate in Q1

The company also reported encouraging drill results from the Rangefront, M Zone and Back Range zones

Liberty Gold reports increased revenue, updated resource estimate in Q1
Black Pine operations. Photo via Liberty Gold

Liberty Gold Corp. (TSX:LGD) (OTCQX:LGDTF) reported increased revenue and an updated mineral resource estimate for its Black Pine gold project in Idaho in the first quarter of 2023.

The Vancouver-based precious metals exploration and development company reported revenue of $4.2 million for the three months ended March 31, 2023, compared with $1.7 million in the first quarter of 2022. The net loss for the quarter was $3.4 million or $0.01 per share, compared with a net loss of $5.6 million or $0.02 per share in the year-ago period.

At the Black Pine oxide gold project, Liberty Gold completed 24 column leach metallurgical tests that showed an average 86.9 per cent gold extraction from oxidized gold mineralization in the Rangefront zone, indicating it is suitable for heap leaching. More than 80 per cent of the leachable gold was extracted within 10 days, the company said.

The results show the Rangefront zone contains the most consistently leachable material at Black Pine, suggesting it could provide early feed to support a future heap leach operation, said Cal Everett, president and CEO of Liberty Gold.

Liberty Gold announced an updated resource estimate for the Black Pine project using a 0.20 gram per tonne gold cut-off. The indicated resource is 157 million tonnes grading 0.52 g/t gold for 2.6 million contained ounces. The inferred resource is 35 million tonnes grading 0.43 g/t gold for 483,000 contained ounces.

The resource update includes a resource pit constraint to better represent the portion of the resource likely extractable with an open pit mining method, which represents the most likely scenario for developing Black Pine, the company said. Gold mineralization at Black Pine remains open and untested in multiple directions.

Read more: Liberty Gold reports best intercept to date at Idaho gold deposit

Read more: Liberty Gold sees positive intercepts at Idaho’s Black Pine deposit

The company also reported encouraging drill results from the Rangefront, M Zone and Back Range zones, including 7.07 g/t gold over 18.3 metres, 2.83 g/t gold over 25.9 metres, and 3.1 g/t gold over 27.4 metres, respectively. The results are from the company’s 2022-2023 reverse circulation and core drill program.

Liberty Gold continued metallurgical testing on another 25 drill core composites from across Black Pine. The company submitted 12 additional composites from the CD zone for column leach testing, bringing the total number of ongoing column tests to 37. The results will help determine estimated gold recoveries and leach cycle times across all deposits and support a future preliminary economic assessment, the company said.

“We are very pleased with the progress made at Black Pine this quarter, notably the release of an updated mineral resource estimate, strong metallurgical results showing high gold extraction from Rangefront Zone mineralization, and a good set of exploration results from several areas,” Everett said.

Liberty Gold is focused on exploring for and developing open-pit oxide gold deposits in the Great Basin of the United States, home to large-scale gold projects ideal for open-pit mining.

The region stretches across Nevada and into Idaho and Utah. Liberty Gold’s flagship projects are the past-producing Black Pine mine in Idaho and the Goldstrike project in Utah.

Company stock dropped by 1.96 per cent on Friday to $0.50 on the Toronto Stock Exchange.

 

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Natalia@mugglehead.com

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