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Wednesday, Apr 16, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Calibre Mining Q1 production soars alongside the price of gold
Calibre Mining Q1 production soars alongside the price of gold
Gold pouring crucible. Photo: Calibre Mining

Gold

Calibre Mining Q1 production soars alongside the price of gold

The precious metal is currently worth over US$3,200 per ounce

Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) pulled a record-high quantity of gold from its production assets in Nevada and Nicaragua during this year’s first quarter at 71,539 ounces.

This unprecedented Q1 result, released on Monday, coincides with record high gold prices. Calibre only produced 61,767 ounces in the first quarter of 2024 and 65,750 during the 3-month period the previous year.

The gold producer also announced that production at the Valentine Mine is being pushed back until the third quarter of 2025.

“Valentine Gold Mine continues to advance, with first ore processed now expected in early Q3, followed by a steady ramp up to nameplate capacity of 2.5 million tonnes,” chief executive Darren Hall specified.

This operation is set to boost gold output immensely, producing an average of 200,000 ounces per annum alone with promising future development opportunities. It will be the number one gold asset in the Canadian Atlantic provinces.

“Valentine is positioned to become a long-life, cornerstone asset in Canada,” Hall added.

Calibre reported having a robust cash balance of US$214.5 million at the end of the quarter. The mining company also secured a US$75-million-dollar investment last month.

Read more: Calibre Mining prepares for special shareholder meeting for Equinox merger

Read more: Calibre Mining values women’s contributions to its operations

Calibre’s merger with Equinox creates appealing investment prospect

Last month, Calibre announced a monumental collaboration with Equinox Gold Corp. (TSE: EQX) (NYSEAMERICAN: EQX) (FRA: 1LRC).

Their combined company will become Canada’s second largest gold producer behind Agnico Eagle Mines Ltd (TSE: AEM) (NYSE: AEM) (FRA: AE9). Between the Valentine project and Equinox’s Greenstone Mine in Ontario, it will produce about 590,000 ounces annually from Canadian operations.

“The combination of two new, long-life, low-cost, open-pit gold mines, Valentine and Greenstone, will be the cornerstone of an exciting new major Canadian gold producer that will be positioned to generate substantial shareholder value,” Hall said recently. “We see enormous potential in the assets we’re bringing together here.”

Shareholder and regulatory approvals for the merger are expected to be obtained this quarter with it being finalized shortly thereafter.

The Greenstone Mine holds approximately 2.2 million ounces of measured and indicated (M&I) resources with an average grade of 1.23 grams per tonne gold. It will have an initial mine life exceeding 15 years. Meanwhile, Valentine is estimated to contain 4 million ounces of M&I resources at an average grade of 1.62 g/t Au. It will have an initial lifespan of more than 14 years.

 

Calibre Mining is a sponsor of Mugglehead news coverage 

 

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