As construction at the Valentine gold operation draws to a close and commercial production inches closer to becoming a reality, Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) welcomed a group of mining analysts to the site for a tour.
This newest addition to Calibre’s portfolio has helped to bolster investor confidence in a company that has already had an outstanding performance record. As the price of gold is expected to ascend even higher in 2025, the additional 195,000 gold ounces per annum being pulled out of Valentine will only improve the balance sheet even more.
In fact, the financial firm Raymond James Financial Inc (NYSE: RJF) just boosted its share target price for Calibre from C$2.50 to C$3.00 on Friday. The Bank of Nova Scotia (TSE: BNS) also shares this sentiment and upped its target price by C$0.25 to C$3.00 on Aug. 19.
Calibre drills exceptional grades; gets authorization for 3rd pit
Construction work at Newfoundland’s number one gold asset is currently about 77 per cent complete while all of the project’s necessary engineering work is nearly 100 per cent wrapped up. Commercial production remains on schedule to commence before the end of H1 next year.
Calibre recently reported drill results from the site’s Marathon pit with 44 per cent more gold at a 47 per cent higher grade than the latest mineral reserve estimate from 2022 indicated was possible.
In early August, the gold miner received approval from Newfoundland’s government to add a third open pit to the site.
Once production begins by the end of next year’s second quarter, the operation will have a 14-year mine life. A few loose ends need to be tied up but everything is coming together on schedule.
On site at $cxb @CalibreMiningCo Valentine build. SAG mill going in @MiningOnline pic.twitter.com/QS9YxDGTeE
— Paul Harris, mining content provider (@PaulHarrisGold) September 5, 2024
Read more: Calibre Mining finds higher gold rates at Marathon Pit
Read more: Calibre intercepts long intervals of gold mineralization above resource grade
Calibre maintains strong relationships with local Indigenous groups
Most notably, the Miawpukek and Qalipu First Nations, who reside within about 110 kilometres from the mine.
The company recently partnered with the Qualipu First Nation for a scholarship initiative. Calibre provided five band members with considerable funding for their education.
The team at Valentine has been actively engaged with these groups since 2019. They then enhanced their relationship with Calibre by signing a pair of socio-economic agreements in 2023.
Band members from the two First Nations were also given a tour of the Valentine gold project last year.
“Both groups were reassured by what the Valentine Gold Mine team was doing to protect the environment,” Mary Hatherly, Manager of Stakeholder and Indigenous Relations for the Valentine project, said. “They knew it on paper, but to see the site really brought it home for them.”
Calibre Mining is a sponsor of Mugglehead news coverage
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