Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF) reported consolidated gold sales of 166,200 ounces, improving year-to-date revenue to USD$374.9 million.
On Tuesday, the company also reported as part of its quarterly financials package that its multi-million-ounce Valentine Gold Mine has passed the 81 per cent mark, with CAD$197 million in costs as of September 30, 2024. The mine is on track to start production in Q2, 2025.
Revenue for the quarter also slid approximately 17 per cent from the approximately USD$137 million from Q2, 2024 to this quarter’s approximately USD$117 million.
Meanwhile, the tailings management facility is complete and prepared to receive water. The company’s leaching area tanks are almost finished, and work on the reclaim tunnel and coarse ore stockpile continues to progress. The installation of the primary crusher is well advanced, and construction of the overland conveyor has begun. Also, pre-commissioning activities are currently underway.
Furthermore, as of September 30, 2024, Valentine’s initial project capital remains fully financed, supported by CAD$300 million cash position.
The company has strengthened its position through a capital management program. This includes a gold prepayment arrangement that will generate USD$55 million. Under this agreement, Calibre will deliver an additional 20,000 ounces of gold from May 2025 to December 2025.
Calibre’s consolidated total cash costs (TCC) averaged USD$1,379 per ounce, with Nicaragua at USD$1,364 per ounce and Nevada at USD$1,463 per ounce. Subsequently, the consolidated all-in sustaining cost (AISC) averaged USD 1,656 per ounce. Nicaragua contributed USD$1,554 per ounce and Nevada offered USD$1,734 per ounce. Operating activities provided USD$88.8 million in cash.
“Consolidated Q4 production is expected to be the strongest of the year, delivering 70,000 – 80,000 ounces, driven by Nicaragua’s Q4 mine plans which are tracking and plan for significantly higher ore tonnes mined,” said Darren Hall, president and CEO of Calibre Mining.
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Berry Pit receives Federal Environmental Assessment approval
Calibre has strengthened its executive leadership team during the quarter by appointing a chief operating officer and a Vice President of Technical Services for Nicaragua. The company has also expanded the resource expansion and discovery drill program at the Valentine mine with an additional 100,000-meter drill program. This complements the existing 60,000-meter program at the Leprechaun and Marathon deposits.
The company received Federal Environmental Assessment approval for the third open pit, the Berry Pit at Valentine. Calibre Mining anticipates construction activities to begin in Q4 2024.
Ore control drilling results at the Marathon Pit at Valentine have yielded 44 per cent more gold at 47 per cent higher grades than projected in the 2022 Mineral Reserve statement.
The company’s exploration program has led to a new discovery along the VTEM Gold Corridor and high-grade gold intercepts from step-out drilling at the Talavera deposit, both within the Limon mine complex in Nicaragua.
These findings highlight Limon’s capacity for ongoing resource expansion and impactful results, including intercepts of 13.26 g/t gold over 4.9 metres ETW, with 33.50 g/t over 1.2 metres ETW, and 6.38 g/t over 10.5 metres ETW.
Additionally, continued drilling in the resource conversion and expansion program within the Guapinol open pit area at the Eastern Borosi mine has intersected high-grade gold mineralization. This enhances the prospects for extending mine life. Results include 13.24 g/t gold over 5.8 metres ETW, with 18.52 g/t over 4.0 metres ETW, and 9.24 g/t over 6.2 metres ETW, including 17.45 g/t over 3.1 metres ETW.
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Calibre Mining finds high value intercepts in Nicaragua in Q3
Meanwhile, in Nevada, Calibre discovered further near-surface, above-reserve-grade gold mineralization at the Pan Mine. This demonstrates the potential for increasing resources, grade, and mine life around Pan. Notable intercepts include 0.45 g/t gold over 117.4 metres ETW and 0.56 g/t over 59.4 metres, with 1.31 g/t over 9.1 metres ETW.
For the period, Calibre recorded consolidated gold sales of 46,076 ounces, with 36,427 ounces from Nicaragua and 9,649 ounces from Nevada. Consolidated TCC were USD$1,580 per ounce, with Nicaragua at USD$1,615 per ounce and Nevada at USD$1,451 per ounce.
The consolidated AISC was USD$1,946 per ounce, with Nicaragua at USD$1,880 per ounce and Nevada at USD$1,813 per ounce.
Additionally, Calibre will continue reinvesting in exploration and growth with over 160,000 meters of drilling and the development of new satellite deposits across its asset portfolio.
For Q4, Calibre expects consolidated production between 70,000 and 80,000 ounces. The company has also forecasted reductions in TCC and AISC. This optimistic Q4 outlook is driven by Nicaragua’s mine plans, which aim to mine significantly higher ore tonnages.
Furthermore, the company’s exploration activities include multi-rig diamond, reverse circulation, and rotary blast drilling drilling across Newfoundland, Nevada, and Nicaragua, complemented by various geoscience initiatives in its exploration pipeline.
Growth capital allocations will support new underground and open pit mine developments, leach pad expansion, waste stripping, and land acquisitions.
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