Wedoany.com Report on Feb 11th, Liberty Gold Corp. has provided a resource update for its Black Pine project in southeastern Idaho. The updated data shows that the project now ranks first in terms of contained gold ounces among undeveloped gold projects in the state and is among the top three in the Intermountain West region of the United States. The company's stock price rose significantly as a result.
In a report released on Tuesday, Liberty Gold stated that this resource update increased the indicated resources at the Black Pine project to 502.7 million tonnes at a grade of 0.3 grams of gold per tonne, equivalent to 4.8 million ounces, a 17% increase from the 4.1 million ounces in the 2024 study. Concurrently, the inferred resources are now 157.1 million tonnes at a grade of 0.21 grams of gold, approximately 1 million ounces, representing a 47% increase in contained gold. The Black Pine project is located approximately 380 kilometers southeast of the state capital, Boise.
Peter Bell, a capital markets analyst at Canaccord Genuity, stated in a report on Tuesday: "The addition of over 700,000 ounces of indicated and 338,000 ounces of inferred gold resources is a solid outcome that meaningfully increases the project's scale." He added: "This update not only expands the resource size but, more importantly, enhances the high-confidence indicated resources supporting the feasibility study. We view this as a constructive outcome that strengthens the project's trajectory towards development."
This resource update has had a positive impact on Liberty Gold. Weeks ago, the Black Pine project was included in the federal FAST-41 program to expedite the permitting process. The project has been designated as a "covered project," granting benefits such as project advisors and schedules, which help enhance inter-agency coordination.
During Tuesday's midday trading in Toronto, Liberty Gold's stock price rose over 3% to reach a 52-week high of C$1.42 per share, giving the company a market valuation of approximately C$723 million (about US$534 million).
Compared to other projects in Idaho, the total contained gold at Black Pine exceeds the Beartrack-Arnett project of Revival Gold (approximately 4.6 million ounces global resource) and the Lemhi project of Freeman Gold (approximately 1.46 million ounces). In the Intermountain West region of the United States, the Black Pine project ranks third, behind AngloGold Ashanti's Beatty District project in northern Nevada (approximately 19.7 million ounces of gold) and Hycroft Mining's namesake project in southern Nevada (14 million ounces).
Jon Gilligan, CEO of Liberty Gold, stated: "This updated mineral resource estimate achieves growth in indicated resources and an expansion of the total resource base, marking a significant step for the Black Pine project towards mine development. With a total of nearly 5 million ounces of gold in the indicated category and just over 1 million ounces of gold in inferred mineralization, the Black Pine project is well-positioned to deliver a feasibility study in the fourth quarter of this year." This update is based on drilling results from 3,010 holes totaling 462,662 meters.
A preliminary feasibility study estimates that the Black Pine project has an after-tax net present value of US$550 million (approximately C$744 million), an after-tax internal rate of return of 32%, and an all-in sustaining cost of US$1,380 per ounce. This estimate is based on a gold price assumption of US$2,000 per ounce and a 5% discount rate. As a significant gold project in the western United States, the resource update for the Black Pine project further solidifies its position in the industry.
