The construction at Calibre Mining Corp’s (TSX: CXB) (OTCQX: CXBMF) Valentine Gold Mine in Newfoundland is 64 per cent complete, and the company has pushed its detailed engineering to 98 per cent from 60 per cent.
The company made the announcement on Monday as part of a corporate update on its progress at the mine.
The company has completed the Tailings Management Facility starter dam embankment, which has been approved by the Engineer of Record, and has begun placing the liner. Additionally, the company has connected the site to the hydroelectric power grid and delivered the mills and motors required for production.
The company has also enclosed the mill building and awarded contracts for Structural Mechanical Piping (SMP), Electrical and Instrumentation (E&I), as well as pre-commissioning and commissioning. The company has also already hired its operations leadership team.
Exploration efforts include 50,000 meters of reverse circulation (RC) drilling completed at the Leprechaun pit, with drilling underway at the Marathon pit. The company also recently completed drilling at the Leprechaun SW discovery. The project area includes district-scale exploration potential across 64 km of shear zones, with target delineation drilling ready to go for this summer.
The 250 square kilometer property offers exceptional exploration potential with geology akin to the prolific Val-d’Or and Timmins camps in the Abitibi gold belt. There is also strong potential down plunge of existing open pits, indicating an additional underground mining opportunity beyond the current open pit mine plan.
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Calibre’s project is fully funded and powered up
Calibre Mining will increase working capital over the next year to mitigate the risk on executing the production ramp-up. It intends to focus on maintaining a critical inventory of consumables and critical spares for mining and processing, as well as developing open pit ore stockpiles to ensure a consistent and uninterrupted feed to the process plant.
Hall reported that Calibre has reconfigured its project schedule since the company acquired Valentine in January 2024. Furthermore, the company has awarded all major contracts and connected the site to hydroelectric power. Additionally, the company has received all critical path items, including mills and motors, employed the operations leadership team, and started pre-commissioning and commissioning activities.
The company has also optimized the project and reduced risks while accelerating a portion of the Phase 2 expansion capital. The pricetag for which was CAD$653 million, which represents a CAD$145 million increase over Marathon Gold’s Q3 2023 update.
Calibre also has CAD$400 million in both cash and restricted cash. It’s fully funded and the project will cost approximately CAD$279 million to finish.
Additionally, that doesn’t factor in the substantial cashflow from its other operations.
Hall expressed confidence in the district-scale potential of the Valentine gold property and anticipates accelerating exploration efforts in the near term. The Valentine Gold Mine and surrounding property offer a robust resource base and significant discovery opportunities, with highly prospective exploration targets similar to the prolific Val-d’Or and Timmins camps in the Abitibi gold belt.
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