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Tuesday, Apr 23, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Calibre Mining intercepts rich gold mineralization at Nicaragua’s Limon complex

The mid-tier producer most notably reported a new core sample with 68.7 g/t gold over 2 metres

Calibre Mining intercepts rich gold mineralization at Nicaragua's Limon complex
Calibre is involved with various initiatives aimed at benefitting local communities in Nicaragua. Photo credit: Calibre Mining

Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) continues to intercept high-grade gold mineralization at its Limon Mine Complex in Nicaragua. These core samples verify the feasibility of continued development.

On Monday, the mid-tier producer reported new drill results from its resource expansion and infill program. They were obtained from open pit deposits near Limon’s processing plant.

Most notably, Calibre intercepted 68.7 g/t gold over 2 metres. The company also drilled a core that had 55.7 g/t Au over 2 metres within a 5.9 metre length containing 18.7 g/t Au.

Calibre’s CEO Darren Hall expressed his excitement about the new results. “Drilling efforts have not only instilled confidence at the yet-to-be-developed Pozo Bono open pit project but have also identified underground potential along the Limon trend,” he said.

He says 2024 is off to a good start and will continue to be productive. The company has numerous promising targets to pursue and drilling operations underway.

“The Limon district has produced over 4.5 million ounces of gold and continues to demonstrate its significant value,” Hall said. Calibre has a high level of confidence in its Nicaragua mining operations going forward.

The new results build on an exceptional bonanza-grade intercept at the Limon complex last month. It contained 111.9 g/t Au over 4.1 metres.

Read more: Calibre Mining reports 96% net income rise for 2023, exceeds production guidance

Read more: Calibre Mining’s new core samples highlight strong resource expansion potential at Valentine

Nicaragua: Central America’s No. 1 gold producer

A report last fall from analysts at PI Financial found that Calibre’s mining infrastructure in Nicaragua would fuel all aspects of the company’s growth going forward. They predicted that the mid-tier producer’s shares would rise from their current price of C$1.56 to C$2.20 by the end of October this year.

Similarly, the Bank of Nova Scotia (TSX: BNS) gave the company a C$2.00 share target price in May, 2023.

Another report last spring from the financial firm Raymond James determined that Calibre’s hub and spoke mining strategy in Nicaragua would continue to be beneficial for years to come.

Calibre exceeded the high end of its production guidance in 2023 by almost 8,500 gold ounces. The company produced a total of 283,494 ounces, the majority of which came from Nicaragua.

Thanks to training from Calibre, a group of women living near its Pavon mine in the country were recently able to start a baking business. The company is also known for tree-planting initiatives in Nicaragua and helping local beekeepers.

Nevada and Newfoundland operations run by Calibre will become more significant contributors in the near future. Production will commence at Nevada’s Gold Rock project this year and Atlantic Canada’s Valentine mine will start producing 195,000 ounces per annum in 2025.

Calibre had exceptional financial success last year. The mid-tier miner reported a 96 per cent rise in net income and a 69.9 per cent increase in operating profit while the value of its assets appreciated by over 23 per cent.

The company had its fourth consecutive year of production growth in 2023 and finished the year with US$86 million in working capital. Calibre had 52 per cent less cash on hand at the end of 2022.

 

Calibre Mining is a sponsor of Mugglehead news coverage 

 

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