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Thursday, Jul 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Calibre Mining gets environmental permits for Volcan deposit in Nicaragua

Calibre Mining’s operations in Nicaragua have been a major contributor to their overall gold production

Calibre Mining gets environmental permits for Volcan deposit in Nicaragua
One of the Libertad mills in Nicaragua. Image via Calibre Mining.

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) received environmental permits in order to develop the open pit mines at the Volcan gold deposit in Nicaragua.

Announced on Monday, Calibre CEO said that the permit approval shows the value of the hub and spoke strategy as the company achieves advances its gold production.

Calibre Mining utilizes a hub-and-spoke system in Nicaragua to efficiently manage its multiple mines and processing facilities. This system centers around two central mills with a combined capacity of 2.7 million tonnes per annum. Several smaller mines, including El Limon, Pavon, and Eastern Borosi, act as the “spokes” feeding ore to these processing hubs known as Libertad.

This approach allows Calibre to leverage existing infrastructure and minimize transportation costs. It also enables the company to quickly incorporate new discoveries into their production cycle.

“With an initial open pit resource averaging 2.0 g/t gold, 2023 drilling confirms that the deposit can host higher-grade, near-surface gold mineralization,” Darren Hall, President and Chief Executive Officer of Calibre, said. “With receipt of this key permit, combined with Volcan’s proximity to the Libertad mill, which has in excess of one million tonnes of surplus capacity, we expect the deposit to contribute to the Company’s production profile in the second half of this year.”

Calibre Mining’s operations in Nicaragua have been a major contributor to their overall gold production.

The company’s Nicaraguan operations delivered 242,109 ounces of gold, and exceeded company expectations. This strong performance helped Calibre achieve a record full year production of 283,494 ounces.

Read more: Big name shareholder sells high percentage of its stake in Calibre Mining

Read more: Calibre Mining shareholders approve all matters at annual general meeting

Nicaragua offers 55K ounces in Q1

The company’s first quarter 2024 results showed Nicaraguan production of 55,007 ounces, which is well on track to meet their full year guidance of 275,000 to 300,000 ounces. This continued success is likely due in part to the hub and spoke system, but also the company’s ability to integrate new resources, like the recently permitted Volcan gold deposit.

Calibre’s latest main growth spurt has been the acquisition of Marathon Gold in early 2024, and its Valentine Gold project in Newfoundland and Labrador.

This mine is currently under construction and on track for production to begin in the first half of 2025. The project is expected to become a key contributor to Calibre’s overall production, aiming to be a Canadian gold producer. Calibre is also actively exploring nearby areas, demonstrating confidence in the potential for further discoveries across this 32-kilometer shear zone. The recent positive drill results outside the initial resource area are intended to expand the Valentine Gold Project.

 

Calibre Mining is a sponsor of Mugglehead news coverage

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