The October prefeasibility on Black Pine shows total output of 2.2 million oz. of gold over 17 years. Credit: Henry Lazenby
Liberty Gold (TSX: LGD) has sent in its draft mine plan and signed an interagency memorandum of understanding, starting the countdown to a 2028 construction start for the Black Pine project in southern Idaho.
With a net present value (NPV), at a 5% discount rate, of $552 million and an internal rate of return of 32% Black Pine could produce 2.2 million oz. gold over 17 years, at average all-in sustaining cost of $1,380, according to an October prefeasibility study, released days after The Northern Miner visited the property. Initial capital costs are pegged at $327 million.
“We are establishing a strong foundation for advancing Black Pine through the permitting process to a potential construction decision within three years, ensuring the project meets the highest environmental and operating standards,” CEO Jon Gilligan said in a release.
The draft plan is now with the United States Forest Service, Bureau of Land Management, Idaho Department of Environmental Quality and Idaho Department of Lands. This initiates a full environmental impact statement (EIS) review under the National Environmental Policy Act. It also presents a clear plan that the company believes will help secure a construction decision by early 2028.
In a climate where Trump is back for a second term, speedier permitting is once again on the agenda. But, as the Department of Government Efficiency’s cuts and streamlining continue to shrink the federal government, it’s unclear how fast approvals will fit with keeping strict environmental protections.
In a research note on Wednesday, Canaccord Genuity mining analyst Peter Bell sees the news as a mixed signal. Bell gave LGD a speculative buy rating with a C$4.00 target price even though shares hover around C$0.32. He states that a clear regulatory roadmap could unlock value. However, he warns that there are risks in execution as the permitting process moves forward.
Upcoming milestones include continued exploration drilling and a resource upgrade by June. A midyear evaluation of historical heap potential for future ore supply is expected. Another comprehensive resource update is planned before a feasibility study is released by year-end. The company skipped the usual preliminary economic assessment stage and released a PFS last October.
Liberty shares trading in Toronto were up 3.3% at C$0.32 by midday Wednesday, giving it a market capitalization of C$122 million.
Permitting boost
Idaho’s permitting process was recently updated. This change comes from Governor Brad Little’s executive order 2025-02, known as the SPEED Act.
The order aims to cut permitting delays and speed up projects that boost energy independence, national security and economic growth. Black Pine is set to benefit from these measures as it navigates a more efficient permitting landscape.
L3 Capital analysts said Wednesday this framework can reduce permitting risks. It may also speed up the construction decision process.
The company’s submission outlines a clear permit timeline. Environmental reviews are to start next year, and final permits should be ready by 2027.
Oxide operation
Liberty’s heap-leaching strategy faces more scrutiny from investors and regulators, who are vigilant about environmental safeguards. This comes after last year’s Victoria Gold mine disaster in the Yukon. It shows what can happen when safety measures fail. Black Pine’s design, similar to the Eagle mine, features a large heap leach pad.
A plan view of Liberty Gold’s proposed Black Pine gold development in southern Idaho. Credit: Liberty Gold
Liberty has pledged extra precautions for its leach pad to avoid repeating past mistakes. The draft mine plan, based on an October preliminary feasibility study, underpins an aggressive yet cautious push forward.
The mining plan for Black Pine involves moving about 70 million tonnes of ore over the life of the mine to a centralized heap leach facility. The pad is designed for an initial capacity of 16 million tonnes, potentially expanding to 24 million tonnes per year.
Independent oversight by consulting engineering firm Stantec is to ensure that the EIS meets strict environmental criteria.
Profitable project
The heap-leach mine plan frontloads the deposit’s higher-grade ore, boosting early cash flows and achieving payback in 3.3 years at a base case gold price of $2,000 per ounce. That could be shortened to 1.5 years at price of $2,600 per oz. gold.
The past producing project churned out over 435,000 oz. of gold between 1992 and 1997.
Elsewhere in the portfolio, 2025 will see field work, drilling and antimony processing studies at Liberty’s Antimony Ridge deposit at its Carlin-style Goldstrike project in southwest Utah, potentially paving the way for a spinout.
