Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) has a promising new gold target at Nicaragua’s Limon Mine Complex. It has the potential to significantly boost the company’s resources and reserves.
On Tuesday, the gold producer revealed that it had made a new discovery designated as “San Jose.” It was identified along the Panteon VTEM gold corridor. Four diamond drill rigs are currently active in the area.
Calibre also reported high-grade drill results from the new discovery and past-producing Talavera mine within the complex.
At San Jose, the gold producer intercepted 13.26 grams per tonne gold over 4.9 metres. This intercept also contained 33.5 g/t Au in a 1.2 metre interval.
From Talavera, Calibre pulled 6.38 g/t Au over 10.5 metres in one of the holes and 33.87 g/t Au in a 1.2 metre stretch from another.
Talavera is known to have produced about 800,000 ounces of high-grade gold during the 1990s. It was extracted by Bema Gold Corporation, which was acquired by Kinross Gold Corp (TSE: K) in 2006.
“Whether it’s a known deposit yielding additional resources outside of the current mine plan, or a new discovery such as San Jose, Limon reserves and resources are anticipated to grow with continued exploration investment,” chief executive Darren Hall said in a news release.
Read more: Calibre Mining shows analysts the ropes at the Valentine gold project
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Calibre replaces 120 wood stoves for locals
Nicaragua’s gold producer has been known to be involved with a variety of community initiatives in the country since its assets there were acquired from B2 Gold Corp (TSE: BTO) in 2019.
These include tree planting, building homes, assisting local beekeepers and more. The company released a short documentary at the end of 2022 showcasing its environmental sustainability work.
One of the most recent initiatives, earlier this year, involved replacing 120 wood stoves for locals in the area surrounding the Pavon Gold Mine.
In communities around our Pavon Gold Mine in Nicaragua, Calibre sponsored a program to replace wood-burning stoves in 120 households – reducing indoor smoke. Watch the full video here: https://t.co/Y20rrx5Hjf#CalibreMining #GoldMining #Nicaragua #SustainableMining pic.twitter.com/d7vvp5ClRp
— Calibre Mining Corp. (@CalibreMiningCo) June 3, 2024
Analysts up their share target price for Calibre
A few different mining experts in the financial sector recently reassessed their share target price for the gold producer and determined it wasn’t high enough.
Raymond James Financial Inc (NYSE: RJF) now expects Calibre stock to reach C$3.00 — a C$0.50 cent increase from the previous estimate. This firm previously praised the company’s hub and spoke operating model in Nicaragua while giving Calibre an outperform rating.
Furthermore, The Bank of Nova Scotia (TSE: BNS) upped its target price for Calibre by C$0.25 last month to C$3.00. Scotiabank has made a number of positive assessments for Calibre in recent years.
Others that have made similar predictions for the company’s shares over the past few months include Canaccord Genuity Group Inc (TSE: CF), Jefferies Financial Group Inc (NYSE: JEF) and National Bankshares Inc. (NASDAQ: NKSH).
Canaccord toured Calibre’s Nicaragua operations last year and predicted that its stock would ascend from C$1.18 to C$2.00 at the time. They are now worth C$2.24.
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
