Liberty Gold’s Idaho project gets FAST-41 nod

Liberty Gold (TSX: LGD) said its past-producing Black Pine gold project in southeastern Idaho has joined the FAST-41 federal government program to quicken permitting.

Black Pine’s designation as a “covered project” gives it benefits such as a timetable and project advisor, allowing for enhanced inter-agency coordination, Vancouver-based Liberty Gold said Wednesday. Over the next 60 days, the company will work with the US government to coordinate a schedule to be posted to the government’s permitting dashboard.

“Today’s news significantly de-risks the permitting process for the Black Pine project,” National Bank Financial mining analyst Rabi Nizami said Wednesday in a note.

Liberty Gold shares jumped 7.7% to C$1.05 Wednesday morning in Toronto, boosting the company’s market value to about C$537 million ($389 million). The stock is at its highest level since March 2022, TMX Group data show.

Baseline studies

Ongoing work at Black Pine includes feasibility-level engineering, continuing environmental baseline studies and both state and federal permitting. A feasibility study is due in this year’s second half. Previous work suggests the proposed mine could produce 2.2 million oz. over 17 years after $327 million in initial capital costs.

Inclusion into the FAST-41 permitting framework “is an important milestone for Liberty Gold and reflects the quality, maturity, and readiness of the project,” Liberty Gold CEO Jon Gilligan said in the statement.

“As a brownfield development with extensive environmental baseline studies already completed, Black Pine is well positioned to benefit from the enhanced coordination, transparency, and accountability that FAST-41 provides as permitting activities progress.”

Located near the Utah border, Black Pine is about two hours by road from Salt Lake City, which allows for a drive-in/drive-out operation with no mining camp required. The area around Black Pine is sparsely populated and the mine can be accessed year-round.

Large scale

Black Pine is one of the few large-scale oxide gold deposits in the US. It holds 402.6 million indicated tonnes grading 0.32 gram gold per tonne for contained metal of 4.16 million oz. gold and 97.7 million inferred oz. grading 0.23 gram gold for 712,000 oz. gold., according to a June 2024 reserve.

A preliminary feasibility study released in 2024 projected Black Pine’s all-in sustaining cost at $1,380 per ounce.

Based on $2,000 per oz. gold and a 5% discount rate, the mine would have an after-tax net present value of $550 million, generating a 32% after-tax internal rate of return.