Liberty Gold just keeps growing and growing.Another prospective unit adds to upside.
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Until early June, the company’s share price performance mirrored that of the GDXJ.
However, the release of a few important catalysts in June,
including the consolidation of the land package at Black Pine,
favorable metallurgical results,
and the discovery of an underexplored unit capable of hosting the oxide gold mineralization,
underpinned the stock’s outperformance versus the GDXJ benchmark.
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The oxide gold mineralization in the old CD open pit, located south of the F Anomaly and
the Tallman Pit, is hosted by the lowest stratigraphic horizon comprised of a 400-meter
thick sedimentary package of limestones, dolomites, sandstones, and siltstones.
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This unit, which rests upon an undulating detachment fault that separates the Middle Plate
from the Lower Plate horizon, has not been extensively tested; therefore, the company has
been focusing at depth adjacent to and underneath the 2019 D-1 and D-2 discoveries.
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The cumulative 100 gram*meter intersection from hole LBP127 in the D-3 discovery is the 9th best drill hole that the company has drilled to date at Black Pine and, importantly, the best ever drilled in the lowermost unit.
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The hole cut intervals of 33.5 meters grading ~2.0 grams per tonne gold from a downhole
depth of 224 meters and 30.5 meters grading 1.1 grams per tonne gold from a downhole
depth of 264 meters.
Another hole drilled over 200 meters to the north (LBP129) also cut 45-50 gram*meters within the same limestone and siltstone unit in the Middle Plate formation, hinting at its continuity.
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In addition, step-out, infill, and transition holes in the D-1 and D-2 targets drilled to
downhole depths of ~330 meters on average generated significant intervals above the cutoff grade of 0.2 grams per tonne, up to 21 meters grading 1.27 grams per tonne.
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The limestone member of the Middle Plate, which has seen the majority of the drill testing at Black Pine by Liberty Gold, shows some high grade close to the surface while the dolomite member seems to be a poor host to gold mineralization.
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The addition of another target horizon that expands the potential of the project at depth is excellent news as it is interpreted to underlie the southern two-thirds of the whole property.
Not only are the results high grade, but also the cyanide solubility results of 87% to 97% suggest pervasive oxidation of the Carlin-style gold mineralization.
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Acknowledgment: Exploration Insights Newsletter - Joe Mazumdar & Brent Cook - 06/28/2020
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RJ