Calibre Mining Corp. (CXB.TO) (CXBMF.QX)

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CALIBRE ANNOUNCES POSITIVE PAVON GOLD MINE PRE-FEASIBILITY STUDY

Pavon Norte Currently in Production; Strong Exploration Potential

 

After-tax NPV5% at US$1,700 gold of $106 Million

 

Vancouver, B.C. – March 16, 2021 – Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (“Calibre” or the “Company”) is pleased to announce the results of its Pavon Open Pit Gold Mine Pre-Feasibility Study (“PFS”), utilizing a portion of the installed 2.2 million tonne per annum capacity at the Libertad mill. As announced on January 21, 2021, Calibre has commenced open pit mining and transporting Pavon Norte ore to its Libertad mill and expects to ramp up production throughout the year.  The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre.  All figures are expressed in United States Dollars.

 

PAVON OPEN PIT GOLD MINE: PFS HIGHLIGHTS

  • Reserve Gold Price                                                    $1,400 per ounce
  • Initial Mine Life 4 years
  • Average Life-of-Mine (“LOM”) Throughput       877 tonnes per day
  • Average LOM Grade                                                86 g/t gold, 7.0 g/t silver
  • Average LOM Recovery                                          94% gold, 35% silver
  • Average Annual Gold Production                         47,000 ounces
  • Average LOM Total Cash Costs1                               $650 per ounce
  • Average LOM All-In Sustaining Costs1 (“AISC”) $711 per ounce (net of Ag credits)
  • Total Gold Production                                              188,213 ounces
  • After-tax NPV5%                                                     ($1,700/oz gold) $106.4 million

 

Darren Hall, Chief Executive Officer of Calibre, stated: “In 14 months, since announcing the Pavon open pit resource, Calibre has permitted Pavon Norte, and commenced ore deliveries to the Libertad mill. Pavon has been a great example of our ‘Hub-and-Spoke’ operating model, by demonstrating how satellite deposits can be efficiently permitted and provide ore to our Libertad mill, extending mine life and generating robust cash flows. Pavon mineralization is open at depth, and along strike, beyond the pit constrained mineral resource limits included in the PFS indicating good potential to expand the resource as exploration drilling advances during 2021.”

 

Mr. Hall continued, “Given our recent success at Pavon, drilling and technical studies have commenced at the Eastern Borosi Project, which we are progressing to be our next high-grade satellite mine.”

 

OPPORTUNITIES

 

  • Reserves consider no new drill data after December 2015;
  • Step out drilling underway to expand gold resources along strike and down dip;
  • Additional resources outside of the reserve mine plan offer potential to extend mine life;
  • Significant surplus capacity at the Libertad mill;
  • Underpins potential for low-cost organic production growth.

 

TABLE 1 – PAVON RESERVE ESTIMATE (DECEMBER 31, 2020)2

Classification Deposit Tonnes (‘000 t) Grade (Au g/t) Grade (Ag g/t) Au Ounces

(‘000 oz)

Ag Ounces

(‘000 oz)

Probable Pavon Norte 759 3.42 4.33 83 106
Probable Pavon Central 522 6.96 10.95 117 184
Probable Total Pavon 1,281 4.86 7.02 200 290

 

 

TABLE 2 – PAVON RESOURCE ESTIMATE* (DECEMBER 31, 2020)3

Classification Deposit Tonnes

(000 t)

Grade

(Au g/t)

Grade

(Ag g/t)

Au Ounces

(‘000 oz)

Ag Ounces

(‘000 oz)

Indicated Pavon Norte 863 3.58 4.77 99 132
Indicated Pavon Central 529 7.73 12.55 131 213
Indicated Total 1,392 5.16 7.72 231 346
 *Indicated Mineral Resources are inclusive of Mineral Reserves.

 

Classification Deposit Tonnes

(000 t)

Grade

(Au g/t)

Grade

(Ag g/t)

Au Ounces

(‘000 oz)

Ag Ounces

(‘000 oz)

Inferred Pavon Norte  98 3.53 6.16 11 19
Inferred Pavon Central 153 4.46 7.68 22 38
Inferred Pavon South 326 2.85 3.22 30 34
Inferred Total 577 3.39 4.90 63 91

 

TABLE 3 – PAVON: PFS FINANCIAL SENSITIVITY MODEL ($ MILLION, AFTER-TAX)

Gold Price Assumption ($/oz)

 

1,400 1,500

Base Case

1,700

 

1,900

 

Cumulative after-tax free cash flow ($’000) 80,220 92,824 118,032 143,240
After-tax NPV5% ($’000) 71,760 83,294 106,364 129,433
After-tax NPV10% ($,000) 64,585 75,211 96,463 117,715

 

The financial models in the PFS were prepared by SLR Consulting (Canada) Ltd. (formerly Roscoe Postle Associates Inc.).  The PFS includes metal price sensitivities detailed in the technical report, which is expected to be published on www.sedar.com in March 2021.

 

TABLE 4 – PAVON: PFS PRODUCTION AND COST OUTLOOK

    2021 2022 2023 2024 Total
Tonnes Mined (000t) 281 299 424 276 1,281
Waste Mined (000t) 2,235 3,266 4,898 3,556 13,954
Strip ratio (W:O) 7.95 10.91 11.54 12.87 10.89
Tonnes Milled (000t) 281 279 410 311 1,281
Grade Milled (g/t Au) 3.54 3.48 5.85 5.99 4.86
Gold Production (oz) 30,075 29,339 72,615 56,183 188,213
Total Cash Costs1 ($/oz) 849 939 540 536 650
AISC1 ($/oz) 943 939 622 536 711
Non-Sustaining Capital ($m)* 9.45 2.54        – 11.99

*Includes 14% contingency.

 

CAPITAL COSTS

Total capital costs of $20.74 million are split between $11.99 million of non-sustaining and $8.75 million of sustaining capital costs. The $11.99 million in non-sustaining capital costs include a 14% overall contingency.

 

2021 non-sustaining capital costs of $9.45 million are included in the Company’s growth capital guidance of $35-40 million for the year.

 

OPERATING COSTS

 

The PFS is based on reserves from the Pavon Norte and Central open pit deposits being trucked to the Libertad processing mill. The reported AISC1 includes average LOM mining costs of $2.36/ tonne mined, processing costs of $22.00/tonne milled plus $2.50/tonne tailings costs, $5.00/tonne milled G&A and $32.00/tonne milled ore transportation costs as well as sustaining capital and closure costs mentioned previously.

 

Opportunities

 

By implementing our ‘Hub-and-Spoke’ operating model and by developing the Pavon gold project, the Libertad Complex processing life has been significantly extended and is now expected to generate robust cash flows over several years.

 

The Pavon satellite deposit (“Spoke”) feeding into the Libertad Complex represents a portion of the mill feed from 2021 through 2024. The Pavon PFS demonstrates the value of the Company’s operating approach by utilizing the surplus capacity at the Libertad mill, investing in exploration to expand the current mineral resource base at Pavon as well as the opportunity for additional low-cost growth. Over 50% excess mill capacity exists at the Libertad mill underpinning Calibre’s focus on exploration to expand resources and discover new satellite deposits which could provide future mill feed.

 

Pavon represents an average of 0.32 million tonnes per annum of mill feed over the next four years, additional mill feed sources include those at Limon and Libertad as per the 2020 Preliminary Economics Assessment (“PEA”) (see August 11, 2020 news release for further details) leaving an average of 1.5 million tonnes of surplus annual mill capacity over the next four years as a significant opportunity for organic growth via further conversion of Mineral Resources, exploration success, artisanal ore purchases or toll milling.

 

The Pavon project represents a newly emerging gold district in Nicaragua in a region that has remained largely underexplored by modern methods. Historical exploration focused on delineating resources within the near surface portions of the Pavon Norte, Central and South deposits where indicated resources totaling 231,000 ounces of gold averaging 5.16 g/t have been delineated within the upper 100 meters.

 

Pavon Norte and Central in combination with the Pavon South vein system also host additional inferred resources totaling 63,000 ounces of gold averaging 3.39 g/t. Exploration drilling initiated by Calibre in Q4 2020 has returned positive results from several step-out holes drilled along and beyond the margins of the currently defined open pit reserves, demonstrating that significant potential exists to expand mineral resources along strike and down dip at both deposits (see February 23, 2021 news release and figures). Two diamond drill rigs are currently testing the potential for lateral and vertical extensions and to the Pavon Norte and Central vein systems. The Company’s exploration team is also actively conducting field surveys to identify areas with potential for new gold discoveries within the project area. Calibre looks forward to providing further updates as exploration at Pavon continues to advance.

 

Link – Pavon Exploration

 

Technical Report and Qualified Person

 

The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre.  This news release has been reviewed and approved by Todd McCracken, P.Geo. of BBA E&C Inc (formally of WSP QP for Pavon Geology/Mineral Resources), Shane Ghouralal, MBA, P.Eng. (WSP QP for Pavon Mining/Mineral Reserves and Infrastructure), and Isabelle Larouche,– P.Eng. (WSP QP for Pavon Metallurgical Testing/Mineral Processing) as well as Grant A. Malensek, P.Eng. of SLR Consulting (Canada) Ltd. (SLR QP for Pavon Economic Analysis).

 

A La Libertad Technical Report prepared by SLR Consulting (Canada) Ltd., (formerly Roscoe Postle Associates Inc.) in accordance with NI 43-101 which will include the Pavon pre-feasibility study results will be filed on SEDAR (www.sedar.com) within 45 days of this news release. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

 

Darren Hall, MAusIMM, President & Chief Executive Officer, Calibre Mining Corp. is a “Qualified Person” as set out under NI 43-101 has reviewed and approved the scientific and technical information in this press release.

 

ON BEHALF OF THE BOARD

 

“Darren Hall”

 

Darren Hall, Chief Executive Officer

 

For further information, please contact:

 

Ryan King
Vice President, Corporate Development & IR
T: 604.628.1010
E: calibre@calibremining.com

W: www.calibremining.com

 

About Calibre Mining Corp.

 

Calibre Mining is a Canadian-listed gold mining and exploration company with two 100%-owned operating gold mines in Nicaragua. The Company is focused on sustainable operating performance and a disciplined approach to growth.  Since the acquisition of the Limon, Libertad gold mines and Pavon Gold Project, Calibre has proceeded to integrate its operations into a ‘Hub-and-Spoke’ operating model, whereby the Company can take advantage of reliable infrastructure, favorable transportation costs, and multiple high-grade mill feed sources that can be processed at either Limon or Libertad, which have a combined 2.7 million tonnes of annual mill throughput capacity.

 

NOTE 1:  Non-IFRS Measures

 

Calibre has included certain non-IFRS measures in this news release, as discussed below.  The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provides investors with an improved ability to evaluate the underlying performance of the Company.  These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.  These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

 

Total Cash Costs per Ounce of Gold Sold (“Total Cash Costs”)

 

Total Cash Costs include mine site operating costs such as mining, processing, and local administrative costs (including stock-based compensation related to mine operations), royalties, production taxes, mine standby costs and current inventory write-downs, if any.  Production costs are exclusive of depreciation and depletion, reclamation, capital, and exploration costs.  Total Cash Costs are net of by-product silver sales and are divided by gold ounces sold to arrive at a per ounce figure.

 

All-In Sustaining Costs per Ounce of Gold Sold (“AISC”)

 

AISC is a performance measure that reflects the expenditures that are required to produce an ounce of gold from current operations.  While there is no standardized meaning of the measure across the industry, the Company’s definition is derived from the definition, as set out by the World Gold Council in its guidance dated June 27, 2013 and November 16, 2018, respectively.  The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies.  The Company believes that this measure is useful to external users in assessing operating performance and the ability to generate free cash flow from operations.

 

Calibre defines AISC as the sum of Total Cash Costs (per above), sustaining capital (capital required to maintain current operations at existing production levels), capital lease repayments, corporate general and administrative expenses, exploration expenditures designed to increase resource confidence at producing mines, amortization of asset retirement costs and rehabilitation accretion related to current operations.  AISC excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to resource growth, rehabilitation accretion not related to current operations, financing costs, debt repayments, and taxes.  Total AISC is divided by gold ounces sold to arrive at a per ounce figure.

 

NOTE 2: Pavon Reserves

 

The mineral reserve estimates were prepared by Shane Ghouralal, P.Eng. MBA (Qualified Person for these mineral reserve estimates), reported using the 2014 CIM Definition Standards, and have an effective date of December 31, 2020.

 

Mineral reserves are mined tonnes and diluted grade; the reference point is the mill feed at the primary crusher.

 

Mineral reserves are reported at a cut-off grade of 1.26 g/t Au.

 

Cut-off grade assumes Au of US$1,400/oz; 100% payable gold with a royalty of US$28/oz; selling cost are US$4.38/oz including offsite costs (refining and transport); and uses an 94% metallurgical recovery for Au and 35% for Ag. The cut off-grade covers processing costs of US$22.62/t, hauling costs of US$31.91/t, administrative (G&A) costs of US$4.91/t, tailings facility costs of US$2.56/t.

 

NOTE 3: Pavon Resources

 

Mineral Resources were prepared in accordance CIM (2014) definitions. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

 

Mineral Resources are inclusive of Mineral Reserves.

 

This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

 

Open Pit Mineral Resources are reported at cut-off grades of 1.17 g/t Au. Mineral Resources are estimated using a long-term gold price of US$1,500 per ounce.

 

Appropriate mining costs, processing costs, metal recoveries, and inter-ramp pit slope angles were used to generate the pit shell.

 

Rounding may result in apparent summation differences between tonnes, grade, and contained metal content. Tonnage and grade measurements are in metric units. Contained gold ounces are in troy ounces.

 

Composites completed at 2 m down the hole.

 

Contributing assay composites were capped at 29.03 g/t Au at Pavon Norte, 75 g/t Au at Pavón Central, and 17.18 g/t Au at Pavon South.

 

A specific gravity value of 2.49 was applied to all blocks in rock and 2.30 was applied to all blocks in saprolite.

 

Cautionary Note Regarding Forward Looking Information

 

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian securities legislation.  All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur  Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond Calibre’s control. For a listing of risk factors applicable to the Company, please refer to Calibre’s annual information form for the year ended December 31, 2019, available on www.sedar.com. This list is not exhaustive of the factors that may affect Calibre’s forward-looking statements.

 

Calibre’s forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time.  Calibre does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, undue reliance should not be placed on forward-looking statements.

 

SOURCE:  Calibre Mining Corp.

Calibre Mining Announces Management Changes

Vancouver, BC – February 26, 2021 – Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (the “Company” or “Calibre”) announces that President and CEO Russell Ball is stepping down from his executive position and as a Director of the Company for personal reasons effective immediately. The Company would like to thank Mr. Ball for his contributions to Calibre over the past three years and wishes him well in his future endeavours. The Company’s current Senior VP & Chief Operating Officer, Darren Hall has been appointed President & Chief Executive Officer and Director of Calibre effective immediately.

 

Blayne Johnson, Chairman of Calibre stated: “The Board of Directors of Calibre is very pleased to welcome Darren Hall to his new role as President, CEO and Director of the Company. Darren is an experienced mining professional who was involved in the acquisition of Calibre’s Libertad and Limon gold mines in 2019. He is the originator of Calibre’s “Hub and Spoke” operating strategy which has resulted in a 30% increase in our forecast gold production in 2021 to 170,000 to 180,000 ozs. Darren was instrumental in increasing the market cap of our previous company Newmarket Gold from $150 million to when Newmarket merged with Kirkland Lake Gold in a $1.0 billion transaction in 2016. Darren has a deep understanding of Calibre’s business and growth strategy and will continue his strong record of leadership and achievement as President and CEO of the Company.”

 

Darren Hall has over 30 years of leadership experience in the mining industry with a track record of increasing production, reducing costs, and promoting health, safety, and business excellence. Darren joined Calibre as Senior VP & COO in 2019 concurrently with Calibre’s acquisition of the Limon and Libertad gold mines in Nicaragua. Prior to joining Calibre, Darren was COO of Newmarket Gold and was responsible for maintaining a strong foundation of quality gold production from three mines including the high-grade Fosterville gold mine, yielding record results. Prior to Newmarket Gold, Mr. Hall worked for Newmont Mining Corporation where he held roles of increasing leadership and responsibility throughout the organization for almost 30 years.

 

Qualified Person

 

Darren Hall, MAusIMM, President & Chief Executive Officer of Calibre Mining Corp is a “qualified person” as set out under NI 43-101 has reviewed and approved the scientific and technical information in this news release.

 

ON BEHALF OF THE BOARD

“Blayne Johnson”

Blayne Johnson, Chairman

For further information, please contact:
Ryan King
Vice President, Corporate Development & IR
T: (604) 628-1012
E: calibre@calibremining.com
W: www.calibremining.com

 

About Calibre Mining Corp.

 

Calibre Mining is a Canadian-listed gold mining and exploration company with two 100%-owned operating gold mines in Nicaragua. The Company is focused on sustainable operating performance and a disciplined approach to growth.

 

Cautionary Note Regarding Forward Looking Information

 

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond Calibre’s control. For a listing of risk factors applicable to the Company, please refer to Calibre’s annual information form for the year ended December 31, 2019, available on www.sedar.com. This list is not exhaustive of the factors that may affect Calibre’s forward-looking statements.

 

Calibre’s forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. Calibre does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, undue reliance should not be placed on forward-looking statements.

 

SOURCE:  Calibre Mining Corp.

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About Calibre Mining

In many industries, an organization’s key asset is its people.
Calibre Mining has an exceptional and diverse group of people focused on responsible business and value creation for its shareholders. When a diverse group of experienced and creative professionals with an aligned goal come together, there is a direct correlation to a successful outcome. At Calibre Mining, our Board of Directors and management have an aligned goal, our team has extensive experience safely leading senior mining companies, creating billions of shareholder wealth and have succeeded in discovering, expanding, developing and producing millions of profitable ounces of gold worldwide.

CALIBRE, DISCOVERING THE POTENTIAL

We embrace change and innovation to help create an aligned team in order to outperform not only our peers but various financial products available in the marketplace today. We are fully invested and aligned with our shareholders – we have over $10 million invested in Calibre.  Calibre Mining is a multi-asset gold producer focused on execution and building sustainable value for our shareholders, communities we operate in, and all stakeholders.

 

 

PAVON GOLD PROJECT

The Pavon property, located in central Nicaragua, is a low sulphidation system. Seventy one historical diamond drill holes totalling approximately 10,700 metres tested veins occurring over a strike length of six kilometres, with results that include 10.3 g/t gold over 16.8 metres in hole PADH-005B in the north zone and up to 6.7 g/t gold over 11 metres in hole PADH-01 in the south zone. During 2009 and 2010, we further explored the Pavon North and South Zones with 56 trenches totalling 1,608 metres. No exploration was carried out on the Pavon properties in 2012. Work was focussed on permitting for the drilling and small scale mining of Pavon.(1)

The Pavon property is located within the Natividad and Las Brisas exploration concessions totaling 31.5km2

After initial site visits and further review Calibre believes there is excellent potential to quickly advance the Pavon Gold Project. Pavon is located approximately 227 km from the El Limon Mine and 300 km from the La Libertad mine. B2Gold had historically and internally studied the potential to open pit mine at Pavon and truck the high-grade material to one of the processing facilities in country. Calibre is in the process of reviewing this potential opportunity and there are no certainties this can be done. Calibre is working on various permits to begin work again on the Pavon project and will be updating the market and progress and milestones are met. Calibre recently updated the NI 43-101 Resource Estimate at Pavon see details below.

July 28, 2020 Calibre Mining announced that the key environmental permit (Environmental Impact Assessment) had been approved for the development and production of Pavon Norte from the Ministry of the Environment and Natural Resources in Nicaragua

During the fourth quarter of 2019, Calibre initiated an Environmental Impact Assessment on the Pavon Gold Project. In addition, Calibre announced an updated resource estimate, which defined indicated resources totaling 1.39 million tonnes at 5.16 g/t Au containing 230,000 ounces of gold, and inferred resources totaling 0.57 million tonnes at 3.38 g/t Au containing 62,000 ounces of gold. The independent Technical Report on the Pavon Gold Project (written in accordance with National Instrument 43-101 standards), titled “Pavon Gold Project, Resource Estimation, Nicaragua” dated January 9, 2020 and effective November 12, 2019, prepared by WSP Canada Inc. is available at www.sedar.com under Calibre’s profile or on the Company’s website at www.calibremining.com.

Since the beginning of 2020, Calibre has continued to progress development at Pavon Norte, working closely with SLR Consulting (Canada) Ltd. (formerly Roscoe Postle Associates Inc.), WSP Canada Inc. and the Centre for an Understanding with Nature in Nicaragua, to ensure quality engineering designs with minimal impacts to the environment. Calibre has advanced engineering studies, mine plans, road construction designs, and socio-environmental initiatives focusing on water conservation and sustainable forestry and ranching. With road construction to the project currently underway, Calibre is well-positioned to commence open-pit ore production from Pavon Norte in the first quarter of 2021.

Calibre has also received the required permits to commence drilling on the Natividad mineral concession, the 1,300-hectare land parcel on which the Pavon Norte Gold Project is located. During the third quarter of 2020, a resource infill, geotechnical and waste dump condemnation drilling program will commence in support of the Pre-Feasibility Study, which is scheduled to be completed during the fourth quarter of 2020.

Calibre has identified the potential for resource expansion along strike and at depth and expects exploration drilling to commence during the fourth quarter of 2020.

Notes:
(1)  Mineral Resource estimates were compiled as of November 14, 2014.
(2)  Mineral Resources are constrained within a pit shell and reported above a cut-off grade of 2.0 g/t gold, which was calculated using estimated project costs and a gold price of US$1,500 per ounce.
(3)  Mineral Resources are constrained within a pit shell and reported above a cut-off grade of 1.15 g/t gold, which was calculated using estimated project costs and a gold price of US$1,400 per ounce.

EL LIMON

El Limon Mine is located in northwestern Nicaragua, approximately 100 km northwest of the country’s capital, Managua. Click here for mine/project location map.

 

On October 15, 2019, Calibre completed the acquisition from B2Gold Corp. (“B2Gold”) of the producing El Limόn and La Libertad gold mines as well as the Pavon gold project and other mineral concessions in Nicaragua held by B2Gold for an aggregate consideration of $100 million, to be paid with a combination of cash, common shares and a convertible debenture.  Following completion of the transaction, B2Gold will own an approximate 30% direct equity interest in Calibre. (Click here for the October 15, 2019 news release).

 

The El Limόn mining exploitation permit covers an area of 12,000 ha and was granted by Ministerial Decree for a 25-year term in 2002.  The project also comprises the Bonete-Limόn, Guanacastal III, San Antonio, and Guanacastal II exploration permits, which are contiguous with the exploitation permit and cover a total area of 8,147 ha, and Villanueva 2 exploration permit, which is located 12 km north of the exploitation permit and covers an area of 1,200 ha.

 

Mining operations use conventional open pit mining methods at the Limón Central open pit and a combination of top-down and bottom-up sequenced longitudinal open stoping (LOS) at the Santa Pancha underground mines.  The El Limón processing plant consists of agitated cyanide leaching and carbon adsorption, followed by carbon elution, electrowinning, and doré production.  The annual throughput is approximately 500,000 tonnes per annum (tpa) and the historical recovery is 94% to 95%.

 

Calibre’s asset base includes multiple ore sources, 2.7 million tpa of installed mill capacity from two processing facilities (El Limon and La Libertad), reliable in-country infrastructure, and favourable transportation costs. The Company will continue to optimize its consolidated mine and process plans as the Company progresses our “hub-and-spoke” approach to maximizing value from our integrated asset base. This philosophy was demonstrated during Q1, 2020 at Libertad which delivered 21,449 ounces, despite the ongoing suspension at the Jabali underground mine, with approximately 20% of Libertad’s production sourced from Limon and Pavon.

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