USA News Group Commentary
Los Angeles, CA – December 18, 2019 It’s no secret that a small move up in gold prices. Often converts into a huge move in junior gold miners. For every 1% move in gold… a small gold miner can rise 20%… 40% or more. And right now, the smartest investors are focused on Junior Miners with promising potential.
Calibre Mining Corp. (TSX:CXB, OTCQX:CXBMF), (Forum)
318% More Gold? This Junior Gold PRODUCER is Ramping Up Quickly
When you have an experienced team at the helm of a gold producer, positive developments are simply par for the course. Especially when that gold producer has the backing of a large and successful gold miner.
Yet the level of success *Calibre Mining Corp.* (TSX:CXB, OTCQX:CXBMF), (Forum) is ramping up towards is still impressive. The Company has been focused on developing its holdings in Nicaragua, including two operating mines purchased back in October from B2Gold Corp. (TSX:BTO), which also owns 34% of Calibre.
Investors familiar with the companies saw that the deal for the El Limon and La Libertad Mines made a lot of sense to both. For B2Gold it was a good way to earn capital on projects that weren’t of a large-enough scope for the multi-billion dollar company, and for Calibre Mining it was a chance to grow the Company’s operating experience in Nicaragua.
And B2Gold had good reason to entrust its mines to the team at Calibre. The Company’s stacked executive had already proven successful at elevating a company’s value for shareholders, recently taking Newmarket Gold from a market cap of $10 million to a $1.0 billion sale to Kirkland Lake Gold Ltd. (TSX:KL).
Now that Calibre Mining Corp.* (TSX:CXB, OTCQX:CXBMF), (Forum) has had a few months at the helm of the two mines, it’s clear that trust was warranted. One of the Company’s strengths was that it could increase efficiency at the existing mines and use the facilities to leverage value from other projects at the same time. The team at Calibre, however, has shown that it is proficient at unlocking far more potential than expected.
On Dec. 3, Calibre announced an updated NI 43-101 revealing a massively updated resource estimate for the Pavon project, a high-grade open-pit gold project that is road accessible to the processing facilities at La Libertad Mine. Just how big was the update from the last resource estimate? Indicated resources at Pavon increased by 318% to 230,000 ounces, while inferred resources increased by 170% to 62,000 ounces.
The findings go to show how much value Calibre has yet to uncover from its numerous projects in Nicaragua. Using an estimated long-term price of US $1,400/oz Au, Pavon’s updated 43-101 utilized a 1.15 g/t Au cut-off value for reasonable prospects. The indicated resources, meanwhile, achieve a grade of 5.16 /gt Au. Considering experts expect gold prices to trend significantly higher in 2020, these great numbers are still relatively conservative.
Russell Ball, the CEO of Calibre, commented on how the updated Pavon resource estimate solidifies the Company’s plans for the project:
“The positive results from the updated Pavon resource estimate, with an average indicated resource grade in excess of 5 g/t Au, provides us with an opportunity to unlock significant value for all our stakeholders by processing the Pavon open pit material at our existing La Libertad mill. The Pavon resource is open at depth and along strike and we will be aggressively investing in resource expansion drilling and project development in 2020.”
Further in the release, Calibre announced that it plans to dig deeper on the Pavon project and commence resource expansion drilling in July 2020 at an estimated cost of US $3.75 million. That’s a serious commitment, but the Company’s recent outlook for 2020 shows investors that the newly purchased mines are paying for themselves.
On Dec. 4, just a day after the updated Pavon 43-101 announcement, the Company provided its production and cost guidance for 2020. Between the El Limon and La Libertad mines, Calibre is expecting 140,000 – 150,000 oz Au for the year, and through the Company’s focus on streamlining operations, is expecting to bring down costs significantly to US $840/oz – US $890/oz Total Cash Costs (US $1,020/oz – US $1,060/oz All-In Sustaining Costs).
That translates into significant cash flows that Calibre can turn around and reinvest in its many projects. As part of the release, the Company states it is aiming to have a total of six drills in the ground by the end of January 2020.
Calibre’s CEO Russel Ball commented on the guidance and confirmed the Company’s focus on growing both its historic holdings and its recently acquired mines:
“I look forward to the first full year of operations at El Limon and La Libertad under Calibre management. With significant operating cash flow generation, we are investing in our operations to add value for all stakeholders through the drill-bit and by focusing on extending the mine life at La Libertad.”
Calibre is about to head into 2020 with a strong and successful 2019 in the rear-view. The management team is aware that a lot of work is left to be done to realize the full potential of the Company’s holdings in Nicaragua, but they know how to do it. With large, institutional backing support and a track record that speaks for itself, it’s hard to doubt them.
Learn more about Calibre Mining Corp.* (TSX:CXB, OTCQX:CXBMF) (Forum)
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.
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