VANCOUVER, British Columbia, May 14, 2024 (GLOBE NEWSWIRE) — Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (“Calibre” or the “Company”) announced a construction and capital cost update on the Valentine Gold Mine (“Valentine” or “VGM”) in Newfoundland & Labrador, Canada. The project is advancing significantly, with the first gold pour expected in Q2 2025. This progress marks a pivotal moment for Calibre as it transitions to become a quality mid-tier gold producer, adding substantial value to shareholders and stakeholders.
Construction Progress and Funding Status
Construction of Valentine Gold Mine is now 64% complete. Detailed engineering has progressed to 98%, a significant improvement from the previous 60%, forming the basis of the capital estimates from Marathon Gold. With an initial capital cost of C$653 million, a C$145 million increase over Marathon Gold’s previous estimate, the project remains fully funded with about C$400 million in cash and restricted cash, reflecting Calibre’s commitment to this project.
Understanding the potential of the property, Calibre is planning to accelerate exploration efforts in the near future in order to unlock further resource value. The Valentine Gold Mine holds district-scale potential, with opportunities for robust resource base and significant discovery possibilities in line with the Val-d’Or and Timmins camps within the Abitibi gold belt.
Exploration Prospects
Recent exploration activities include completing 50,000 metres of reverse circulation drilling at Leprechaun and ongoing diamond drilling at Leprechaun SW discovery. The property boasts district-scale exploration potential with expansion plans across various shear zones, opening up opportunities for discoveries beyond the existing open pits. Geologically, it aligns with successful gold belts like Val-d’Or and Timmins.
Additional Insight:
Expanding on exploration efforts can not only enhance resource estimates but also pave the way for additional open-pit and potentially underground mining opportunities. By utilizing the property’s geology and increased drilling, Calibre can strategically position itself for long-term success in the region.
Capital Cost Comparisons
The construction progress and optimization efforts have resulted in an increase in the initial capital cost to C$653 million. This increase over Marathon Gold’s previous estimate can be attributed to a combination of factors:
- Marathon’s Schedule and Cost Underestimation: C$70 million
- Calibre’s Project Optimization & Derisking: C$40 million
- Calibre Advancing Operations & Phase 2 Expansion Capital: C$35 million
These adjustments reflect a more accurate assessment of the project’s needs and potential, ensuring a successful and sustainable transition to production in Q2 2025.
Working Capital Strategy
To ensure a smooth production ramp-up, Calibre plans to enhance its working capital over the next year. This strategy includes critical inventory management and the development of open-pit ore stockpiles for uninterrupted feed to the processing plant.
As Calibre continues to strengthen its position in the market, the company’s commitment to sustainable value creation through responsible operations will pave the way for long-term success in the Americas, reinforcing its status as a growing mid-tier gold producer.
It’s noteworthy that the mining industry is dependent on stable gold prices, global economic conditions, political stability, and technical advances in mining technologies. Hence, keeping an eye on these external factors will be crucial for Calibre as it moves forward with its projects.
