Unlocking Hidden Value: Liberty Gold's Strategic Repurposing of Legacy Assets at Black Pine

In an era where capital efficiency and resource optimization define the success of junior miners, Liberty Gold Corp. (TSX: LGD; OTCQX: LGDTF) has emerged as a standout case study. The company's Black Pine Oxide Gold Project in southeastern Idaho is not merely a conventional gold play—it's a masterclass in repurposing underappreciated assets to unlock incremental value. By reimagining its legacy heap leach pad (L-HLP), Liberty Gold is demonstrating how a historically overlooked asset can become a catalyst for both cost reduction and resource expansion, positioning the project as a high-conviction opportunity in a resilient gold sector.

The Gold in the Heap: A Dual-Use Strategy

The L-HLP, a 31-million-tonne structure built in the 1980s, was initially abandoned after low-grade gold recovery rendered it uneconomical. However, Liberty Gold's recent 24-hole, 1,400-meter sonic drilling program revealed a critical insight: the heap contains residual cyanide-soluble gold with grades ranging from 0.06 to 1.18 g/t. These concentrations, particularly near the surface, suggest a recoverable gold inventory that justifies reprocessing. Metallurgical tests further confirmed that 33–68% of the gold is amenable to cyanide leaching, with Phase 5A column leach tests achieving a robust 80.6% extraction rate.

But the company's ingenuity doesn't stop there. Instead of treating the L-HLP as a standalone reprocessing project, Liberty Gold is integrating it into the broader Black Pine strategy. By repurposing the heap material as an over-liner for the new heap leach pad (N-HLP), the company is slashing capital expenditures. This dual-use approach not only reduces the need for new construction materials but also eliminates a 50-meter setback previously imposed to avoid disturbing the legacy heap. The removal of this constraint could unlock access to an estimated 250,000 ounces of oxide gold mineralization on the northern margin of the Rangefront deposit—a resource currently classified as such but with clear potential for reserve conversion.

Capital Efficiency Meets Resource Expansion

The strategic repurposing of the L-HLP exemplifies Liberty Gold's focus on capital efficiency. By leveraging existing infrastructure and material, the company is minimizing the need for costly new inputs while extending the life of the project. This is a critical differentiator in a sector where CAPEX overruns often derail even the most promising projects.

Moreover, the removal of the L-HLP creates a near-pit exploration opportunity. Historical drilling suggests that oxide gold mineralization may extend beneath the heap, offering a low-cost, high-impact drilling target. With metallurgical testing ongoing and mine plans being revised to incorporate the L-HLP material, Liberty Gold is poised to integrate these incremental ounces into its production schedule. This flexibility—adding reserves without significant new capital—positions Black Pine as a model for scalable, low-risk resource plays.

A High-Conviction Play in a Resilient Sector

The gold sector's resilience in 2025, driven by inflationary pressures and geopolitical uncertainty, has made oxide gold projects with low CAPEX profiles particularly attractive. Liberty Gold's Black Pine project aligns perfectly with this trend. The company's ability to transform a legacy heap into a value driver—while expanding resources and reducing costs—highlights its operational and technical expertise.

Investors should also note the regulatory tailwinds. Ongoing discussions with state and federal agencies suggest that permits for the L-HLP relocation and reprocessing are progressing smoothly, with reclamation plans already in place. This proactive approach to compliance reduces operational risks and enhances the project's long-term viability.

The Bottom Line

Liberty Gold's Black Pine project is a textbook example of how underappreciated assets can be repositioned to create near-term value. By combining incremental gold recovery, CAPEX reduction, and resource expansion, the company is building a compelling case for capital allocation. For investors seeking exposure to a high-conviction, capital-efficient gold play, Black Pine offers a rare combination of technical execution, strategic vision, and sector alignment.

As the gold sector continues to favor projects that deliver both resilience and scalability, Liberty Gold's innovative approach at Black Pine is not just unlocking hidden value—it's setting a new standard for resource optimization in the oxide gold space.