Liberty Gold Eyes 2029 Production for Black Pine Gold Project
Liberty Gold (TSE:LGD) has unveiled plans to advance its Black Pine oxide gold project in Idaho, targeting commercial production by 2029 following the completion of a feasibility study. The project is designed as an open-pit, run-of-mine heap-leach operation with a 16-year mine life, aiming to produce nearly 3 million ounces of gold from a 4-million-ounce reserve. Annual production is projected at 177,000 ounces, with all-in sustaining costs of $1,566 per ounce.
The feasibility study estimates initial capital requirements of $411 million, which the company describes as manageable through various financing avenues including debt, equity, and streaming. The project's operating plan involves drill-and-blast mining, hauling, and heap leaching, with two larger owner-operated pits and smaller peripheral pits mined by contractors. The study also assessed sensitivity to gold prices, indicating the project remains viable at prices as low as $1,400 per ounce and could yield a net present value exceeding $6 billion at $6,000 per ounce.
Liberty Gold has secured access to water rights from an adjacent basin, plans to connect to an existing power line, and benefits from proximity to major infrastructure like Interstate 84. Since its pre-feasibility study, Black Pine’s reserve has increased to 4 million ounces from 3 million ounces, with the resource growing to 6 million ounces. The company is halfway through a 50,000-meter drilling program aimed at upgrading indicated resources to measured resources and supporting a resource update early next year.
The company is about two-thirds through the U.S. National Environmental Policy Act process and expects to complete detailed engineering by mid-2027, with construction beginning in late 2027 and commercial production targeted for 2029. Liberty Gold reported $36 million in cash and expects an additional $34 million over the next 14 months, supporting operations through 2028. The company has received support from institutional investors and holds a 0.5% royalty with Wheaton Precious Metals, retaining the right to buy back 50% of that royalty.