Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) received government approval to add a third open pit to its portfolio at the Valentine Gold Mine in Newfoundland on Monday.
The company submitted an environmental assessment update to the Impact Assessment Agency of Canada (IAAC) about the changes to Valentine in August of last year.
The minister approved the addition after the IAAC’s analysis of the update, which included consultations with Indigenous groups, communities, and stakeholder organizations.
“With this approval and the recent issuance of provincial mining and surface leases for Berry and associated infrastructure, we now have the major approvals required for the three-pit mine plan included in the 2022 Feasibility Study,” said Darren Hall, CEO of Calibre Mining.
Valentine features a series of mineralized deposits spanning a 20-kilometre trend. The December 2022 Feasibility Study outlines an open pit mining and conventional milling operation lasting 14.3 years. It also includes a 22 per cent after-tax rate of return. The project aims for an average gold production of 195,000 ounces per year for the first 12 years.
The project estimates proven and probable mineral reserves at 2.7 Moz (51.6 Mt at 1.62 g/t Au). The mineral resource estimate for total measured and indicated mineral resources at 3.96 Moz (64.62 Mt at 1.90 g/t Au). Additionally, Valentine identifies inferred mineral resources of 1.10 Moz (20.75 Mt at 1.65 g/t Au).
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Valentine will become largest gold mine in Atlantic Canada
Calibre is an Americas-focused mid-tier gold producer. It holds a pipeline of development and exploration assets across Newfoundland and Labrador in Canada, Nevada, Washington in the U.S.A., and Nicaragua.
The company acquired Marathon Gold and its Valentine gold project to establish a high-growth, cash-flow-focused, mid-tier gold producer in the Americas, aiming for an annual production of 500,000 ounces by 2026.
Before the acquisition, Marathon sold a 1.5 per cent net smelter return royalty to Franco Nevada Mining Corp. (TSX: FNV) (NYSE: FNV) for USD$45 million. Consequently, Franco-Nevada holds a 3.0 per cent NSR on the project.
Calibre anticipates that Valentine will become the largest gold mine in Atlantic Canada.
Investment bank Canaccord Genuity said the advancement of the Valentine Gold Mine is “very positive” for the company.
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