Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) delivered 61,767 ounces in its first quarter, with gold production in its second half expected to climb as additional production sources and higher-grade zones are incorporated into its overall mining plan.
The company announced the operating results for the three months ended March 31, 2024, and said that it remains on track to deliver full year 2024 production guidance of between 275,000 and 300,000 ounces.
Calibre’s CEO and president, Darren Hall, anticipates that 2024 and 2025 will be transformative for Calibre, marked by heightened gold production and extensive exploration efforts throughout the Americas.
Hall is satisfied with the progress of construction and operational readiness at VGM, affirming that it remains on schedule and adequately funded to commence gold production in the first half of 2025, promising substantial growth and value for shareholders.
Amidst this period of expansion, Calibre reaffirms its dedication to sustainability and ethical mining practices, going beyond mere regulatory requirements to actively pursue environmental stewardship and engage with local communities in a transparent and impactful manner.
“Since becoming a gold producer during Q4, 2019, Calibre has delivered annual production growth of 28% year on year, with a track record of meeting or beating expectations,” Hall said.
“We are on a clear and concise path of delivery and growth. With an investment of more than 130,000 metres of resource expansion and discovery drilling in 2024, I am excited to see continued positive results across our entire portfolio of assets.”
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Calibre’s production and acquisitions provide value
The previous year has produced considerable upside for Calibre.
The company has successfully completed the acquisition of Marathon Gold, securing significant future growth as construction of the multi-million-ounce Valentine Gold Mine surpasses 61 per cent completion. As it stands, the company’s quarterly gold production stands at 61,767 ounces, with 55,007 ounces from Nicaragua and 6,760 ounces from Nevada.
Additionally, the company achieved its fourth consecutive year of mineral reserve growth, with consolidated 2023 mineral reserves increasing by 398 per cent since the acquisition in 2019, reaching approximately 1.4 million ounces of gold. Furthermore, Nicaragua’s mineral reserves have increased by 4 per cent to approximately 1.1 million ounces at a grade of 5.13 g/t gold, while Nevada’s mineral reserves have increased by 12 per cent to 300,000 ounces.
The company’s mineral endowment has significantly expanded, adding 2.7 Moz of reserves, 3.96 Moz of measured and indicated resources (inclusive of Reserves), and 1.10 Moz of inferred resources. Operational readiness progress continues at VGM with the appointment of a Vice President of Canadian Operations and a Process Plant Manager, along with a commissioning contract with Reliable Controls Corporation of Salt Lake City.
The company also reported positive drill results one kilometre southwest of VGM Resources, combined with high-grade ore control drilling outside of reported mineral reserves, have added additional tonnes and demonstrated strong discovery potential across the 32 kilometre shear zone.
The company-wide mineral endowment in The Americas now stands at over 4.1 Moz reserves, 8.6 Moz of measured and indicated resources, and 3.6 Moz of Inferred Resources. Continued interception of bonanza grade drill results along the multi-kilometre Panteon VTEM Gold Corridor within the Limon Complex has been achieved.
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Intangible benefits show Calibre’s commitment to ESG
Also, shallow, open pit mineable grades and widths from the Volcan deposit within the Libertad Complex advance the company toward a mid-2024 mining decision as permitting remains ongoing. As part of the company’s cash management strategy and to bolster the balance sheet, Calibre announced a $100M bought deal financing and completed a $60M short-term gold prepayment agreement.
Meanwhile, the company has benefited from intangible developments.
“During this time of significant growth, Calibre remains committed to its pursuit of excellence in sustainability and ethical mining practices,” Hall said.
“Our efforts extend beyond regulatory compliance, focusing on continuous improvement to minimize our environmental footprint, as well as transparent and extensive community engagement to create a positive impact in the regions in which we operate.”
The company achieved Year-3 compliance with the World Gold Council’s Responsible Gold Mining Principles. This is important because it demonstrates the company’s commitment to ethical and sustainable practices, which enhances its reputation, builds trust with stakeholders, and ensures the responsible extraction and use of gold resources for both present and future generations.
Calibre’s growth over the past few quarters also merited inclusion into the Van Eck Vectors Gold Miners ETF.
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