Liberty Gold CEO: Politics Will Influence Market, Remains Bullish

Liberty Gold's CEO, Calvin Everett, recently shared his insights on the state of the commodities market and discussed his company's future plans in an interview with Benzinga. Liberty Gold is a pre-production junior miner that specializes in developing Carlin-type gold deposits.

Everett described these deposits as sedimentary-hosted heap leach systems that do not require milling or tailings, thereby avoiding significant environmental issues. Despite being low-grade, they have high margins due to their efficient extraction process. The company is currently awaiting results from their first major economic study, conducted by nine consulting groups.

The biggest challenge for the company, according to Everett, is managing fluctuations in gold prices. To mitigate this risk, the company aims for a mine life exceeding ten years, so it can ride multiple price cycles and optimize long-term earnings.

Everett also provided updates on Liberty Gold’s Black Pine project in Idaho, where they have been prospecting for about eight years now. Last year's focus was geotechnical drilling, and this year they are working on hydrology holes to check water flows around the area. They aim to increase Black Pine's resources to 5 million ounces.

On current trends in commodity markets, Everett noted that countries with high debt loads are trying to leverage rising metal prices by imposing royalties on mining activities within their territories, citing Kazakhstan's new royalty structure for uranium as an example.

When asked about rumors of reviving the Bureau of Mines as the principal regulatory point, he expressed support but highlighted challenges such as resistance from politicians and bureaucrats, along with potential environment-related hurdles posed by groups concerned about endangered species like grizzly bears.

Everett suggested concentrating on gold production in Utah and Idaho, copper production in New Mexico and Arizona, and nickel production in Michigan. California has some rare earth elements despite its stringent regulations against mining, while Montana presents challenges due to local ranchers often opposing mining projects.

For investors considering junior mining investments, he advised looking into royalty structures, the size of alteration zones, and the scale of the target area, among other things. He also suggested verifying information by looking for a 43-101 report on the project, which provides comprehensive details on geology, history, royalties, and personnel involved.

Liberty Gold is currently working on an economic study that should be ready by Q3, which will provide insights into the potential of the Black Pine project. Everett remains bullish on gold in light of ongoing political and economic shifts, such as efforts to combat inflation and potential changes in corporate tax rates, as well as emerging factors like India's potential gold purchasing policies that could drive significant demand.