Calibre Mining (TSX: CXB) (OTCQX: CXBMF) discovered an estimated $3 billion gold deposit three miles northwest of the historic mining community of Republic, Washington, stirring hopes of a resurgence.
The company reported late last month a property it owns has 2 million ounces of gold, based on analysis of recent drilling at its Golden Eagle Project.
“The first phase of this drill program confirms a robust mineral system with consistent gold grades over broad widths,” said Darren Hall, CEO of Calibre Mining.
Calibre acquired the Gold Eagle property with the acquisition of Fiore Gold last year. The site could contain approximately $3 billion worth of gold in the ground before extraction costs, assuming the gold price remains around $1,500 per ounce.
Nearly 4 million ounces of gold have been extracted from the Eureka Mining District since the 1800s. The last operating gold mine in the area was Buckhorn Mine, which closed in 2017. The mine was owned by Kinross Gold Corp (TSX: K) (NYSE: KGC) and produced 1.3 million ounces during its lifetime.
At present, Calibre’s Golden Eagle Property is in the exploration stage. The exploration stage is the process of gathering data and conducted research to determine the potential of a mineral deposit. It includes activities like geological mapping, geophysical surveys, sampling and drilling.
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Calibre mining operations could bring jobs to former mining town
Third party engineers and consultants for Calibre have given the region both measured and indicated classifications. Specifically, Golden Eagle hosts a pit-constrained, measured and indicated resource of 2.02 million ounces at 1.4 g/t gold with an inferred resource of 155,000 ounces at 0.9 g/t gold.
“We are going to be reviewing this data throughout the year, possibly looking at doing additional drill programs,” said Calibre senior vice-president Ryan King.
The site is also adjacent to other known deposits and infrastructure from other companies. Calibre indicates on its website that it’s open to potential collaborations.
For the people of Republic, though, if a new mining operation were able to open, it could restore jobs that had been lost when previous mines closed.
“Any type of mining success in the county is definitely good for our economy,” said Jeremiah Lofthus, business outreach coordinator for Ferry County Sunrise, an economic development organization.
“We are traditionally a mining community, so any mining activity would definitely be helpful.”
Michael Heath, the chairman of the Ferry County Commission, remained skeptical that anything was going to come to pass due to environmental activists and red tape. Also, costs of mine reclamation, which he indicated makes more economic sense to ship ore from other countries.
“I will be absolutely amazed if I see mining in my day,” Heath said. “I’m a little skeptical.”
“I’m not saying it couldn’t happen, but there would need to be some kind of shift. It would probably end up helping our economy tremendously.”
Calibre Mining is a sponsor of Mugglehead news coverage
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