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Wednesday, Feb 8, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Analysis

Calibre Mining high-grade gold drill positive results to continue at Panteon North, say analysts

Analysts estimate production at Panteon North could start in 2024, adding to Calibre’s already growing production profile.

Calibre Mining high-grade gold drill positive results will continue at Panteon North, say analysts
Limon Mine and Mill. Photo by Calibre Mining

Calibre Mining (TSX: CXB) (OTCQX: CXBMF) will continue to see positive results for its gold drill program at its Panteon North location which could lead to production in 2024, according to renowned market analysis firms.

On Tuesday, the mining company with primary operations in Nicaragua announced further positive drill results from its Panteon North zone at CXB’s Limon Complex. The high-grade discovery was defined over around 400 meters strike length and over 200 meters down-dip.

The Limon Complex has had a strike of positive results and has a current 1,352 koz global gold resource grading 2.82 g/t with reserves of 529 koz grading 4.47 g/t, as well as Panteon’s existing underground reserves grading 7.17 g/t.

The company expects the high-grade mineralization in the main gold shoot at Panteon North will lead to a maiden resource in Q1 2023.

According to an analysis by Canaccord Genuity Corp. Panteon North could support high-grade resource growth with further potential for material discovery.

“We continue to view the high-grade hits that Calibre has delivered at Panteon favorably, providing evidence of CXB’s ability to grow both reserves and resources net of depletion while also maintaining or improving reserve grades year-over-year,” wrote analyst Michael Fairbairn.

Calibre Mining high-grade Panteon North to continue with positive results, say analysts

Graph via Calibre Mining

Read more: Calibre Mining brings high-grade gold drill results home from Nicaragua

Read more: Calibre Mining step-out drilling results show bonanza grade gold intercepts in Nicaragua

B2Gold acquisition resulted in significant reserve growth for Calibre

Analysts at Canaccord believe this potential resource growth will support Calibre’s expected grade-driven production growth out of Nicaragua going forward, expanding 32 per cent from ~183koz of gold in 2021 to ~241koz by 2024.

After acquiring the Nicaraguan assets from B2Gold in 2019, Calibre has invested in exploration and drill programs which have resulted in significant reserve growth and reserve grades (from ~140koz grading 2.56 g/t in 2018 to ~1,027 koz grading 4.66 g/t in 2021) as well as total global resources in Nicaragua (~2,530 koz in 2018 to ~2,709 koz in 2021).

Analysts at the firm Cormark Securities Inc. described Calibre’s drill results from Panteon North as positive and continuing to operate well.

“We see the potential for upside to our NAV from the aggressive drill program and the runway for production growth over the next several years,” reads a Wednesday analyst report by Conmark on the drill results.

Calibre Mining high-grade Panteon North to continue with positive results, say analysts

Graph via Conmark Securities

Calibre could start production at Panteon North in 2024

Analysts Geordie Mark and Nicholas Lobo at Haywood Securities said that Calibre could start production in 2024 as there is a high-grade deposit positioned for the first quarter of next year.

“This drilling shows the discovery potential of the systems under exploration and the value quotient offered in the latent capacity of Nicaragua’s operations to turn discovery into production quickly and for relatively low capital,” explained the analysts in an exploration update published Tuesday.

“We do not integrate Panteon North into our valuation or production forecast considerations, but note that such establishment of an operation would likely increase production via displacement of lower grade material alone.”

Calibre Mining owns and operates the El Limon and La Libertad gold mines in Nicaragua. In addition, the company owns the producing Pan gold mine in Nevada along with many other gold development and exploration projects in Nicaragua and Nevada.

Highlights from its latest drill results include:
• 17.80 g/t Au over 7.9m (LIM-22-4694)
• 13.14 g/t Au over 8.4 m (LIM-22-4659)
• 12.30 g/t Au over 4.4 m (LIM-22-4672)
• 15.18 g/t Au over 2.9 m (LIM-22-4671)
• 12.85 g/t Au over 10.6 m including 22.47 g/t Au over 4.9 m (LIM-22-4691)

 

 

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