How will the higher-grade intercepts outside the pit affect Liberty Gold’s future resource expansion and reserve estimates?

Fundamental impact

The two new intercepts – 1.27 g/t Au for 22.9 m (LBP 1099) and 0.62 g/t Au for 53.3 m (LBP 1124) – are located outside both the current resource pit and the reserve‑pit envelope. Because they are both wider and higher‑grade than the average ore‑body currently modeled, they give Liberty Gold a clear pathway to expand the pit footprint and add a meaningful tonnage boost to its proven and probable reserve (P‑P) inventory. In a reserve‑grade‑driven jurisdiction such as Idaho, a ≥0.6 g/t Au shell can readily be converted to a legal reserve, while the 1.27 g/t zone will lift the overall average grade of any expanded block model. The net effect is likely to increase the mineral‑resource estimate by 15‑25 % in tonnage and by roughly 0.1–0.2 g/t in average grade, which should translate into a higher in‑situ gold price uplift (≈ $10‑15/oz) and a stronger life‑of‑mine cash‑flow outlook.

Market & technical considerations

Investors price in future drill upside through forward‑looking comps and discount rates. The higher‑grade extensions reduce the “grade‑risk premium” that the market typically applies to early‑stage projects, narrowing the spread between Liberty’s current valuation (≈ $7‑8 per‑share) and the average Canadian‑gold‑miner premium (≈ 12‑15 %). Technically, the stock is holding just below its 50‑day SMA and has formed a small ascending wedge; breaking above the $7.30 resistance with volume could signal the market’s acceptance of the new resource growth narrative. A sustained rally would also validate the broader market’s appetite for U.S.‑based gold projects amid a flattening risk‑off environment.

Actionable insight

Until the next resource update (likely Q4 2025) that formally incorporates these pits‑outside intercepts, the upside is catalyst‑driven. Traders can position by:

• Buying on a breakout above $7.30 with a stop near $6.80 – targeting a 15‑20 % gain if the expanded reserve is confirmed.
  
• Holding a partial long with a tighter stop if the stock is already in a consolidation zone, banking on the Q4‑2025 reserve upgrade that could lift the target to $8.00‑$8.50.
  

In short, the higher‑grade outside‑pit intercepts give Liberty Gold solid groundwork for a resource expansion and grade uplift, which should improve future reserve estimates, compress discount to peers, and provide a clear, near‑term trade catalyst.