Liberty Gold sets 2028 build clock for Black Pine under Idaho’s new SPEED Act

Liberty Gold (TSX: LGD) has sent in its draft mine plan to federal and state agencies, as it hopes to benefit from a recently updated permitting process under Idaho’s SPEED Act, starting the countdown to a 2028 construction start for the Black Pine project in southern Idaho.

With a net present value (at a 5% discount rate) of US$552 million and an internal rate of return of 32%, Black Pine could produce 2.2 million oz. gold over 17 years, according to an October prefeasibility study (PFS). That study, released days after The Northern Miner visited the property, also pegged initial capital costs at US$327 million and gave the project an all-in sustaining cost of US$1,380. The past-producing mine was active in the 1990s.

“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.

A partnership that Liberty signed with government agencies is aimed at helping it complete reviews for the environmental impact statement (EIS), expected to start next year. Final permits should be ready by 2027 and the company believes a construction decision could be made by early 2028.

With Donald Trump back in the White House, 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 offered a mixed response to Liberty’s situation. Bell gave LGD a speculative buy rating with a $4.00 target price even though shares hover around 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.

For the year ahead, the company plans to continue drilling and a release a resource upgrade by June. A mid-year evaluation of historical heap potential for future ore supply is also 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%, or 1¢ per share at 32¢ by midday Wednesday, giving it a market capitalization of $122 million.

Permitting boost

The changes to Idaho’s permitting process came 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

Included in Liberty’s mine plan for Black Pine is a large heap leach pad.

A plan view of Liberty Gold’s proposed Black Pine gold development in southern Idaho. Credit: Liberty Gold

The plan 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.

Consulting engineering firm Stantec is to provide oversight for the EIS.

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 US$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.