VANCOUVER – Calibre Mining Corp. [CXB-TSX; CXBMF-OTCQX] provided an update on the company’s next high-grade open-pit mine at Pavon Central, and 2021 and 2022 drill programs, central Nicaragua. Pavon Central development is on track to ramp up production in the first half of 2023 and recent results highlight high-grade drilling and expansion of defined high-grade open pit deposits at the Pavon Central and Pavon South.
Pavon Central is on track to be the company’s next high-grade open-pit mine (2021 open pit reserve grade is 6.49 g/t gold) and is advancing development and permitting expecting to initiate mining during Q1, 2023.
Drilling is under way with two rigs following up on recent high-grade results. There are strong indications for resource expansion along Pavon Central south extension and Pavon South.
Highlights of Pavon Central drill results include 5.08 g/t gold over 7.6 metres estimated true width from 72.7 metres in hole PVC-21-046. Hole PVC-21-062 returned 4.21 g/t gold over 6.5 metres ETW from 32 metres. Hole PVC-21-078 returned 4.46 g/t gold over 9.8 metres ETW from 94.6 metres. Hole PVC-21-081 returned 8.58 g/t gold over 4 metres ETW from 145.3 metres.
Highlights of Pavon South drill results included 11.56 g/t gold over 12.4 metres ETW from 37.6 metres. PVS-21-002 returned 4.08 g/t gold over 2.3 metres ETW from 49.4 metre. Hole PVS-21-006 returned 3.04 g/t gold over 28.4 metres ETW from 26.2 metres. Hole PVS-21-014 returned 11.75 g/t gold over 3.9 metres ETW from 81.2 metres.
Darren Hall, President and CEO, stated: “In 2021, Calibre responsibly initiated mining and steadily increased Pavon Norte production rates delivering a new mine and additional feed into our Libertad mill. Successful gold production from Pavon Norte to our underutilized Libertad mill demonstrates the success of our expanding operating strategy to de-orphan satellite deposits to generate robust cash flows and extend mine life. The significantly higher reserve grade at Pavon Central, over that of Pavon Norte, is expected to positively contribute to 2023 and 2024 production growth while maintaining constant mining and hauling rates, leading to lower per ounce costs.
“Pavon Norte represents the first of three known high-grade open pits within this emerging gold district. As exploration at our 100%-owned Pavon Complex continues to advance, we are beginning to see the benefits of our drill program and believe there is great potential to make new discoveries and continue to expand known resources particularly when intercepting high-grade intercepts near surface as reported today.”
The drilling completed in 2021 and the current program focuses on step-out drilling on the currently identified resources, extending mineralization along strike and down dip, in all three deposits. The vein-bearing structure varies in width and grade with several drill holes host to multiple gold-bearing quartz veins within a wide fault structure. Given the positive drill results, to-date, there is good potential to expand Pavon Central along strike to the north where new intercepts include 4.46 g/t gold over 9.8 metres and 5.98 g/t gold over 1.4 metres. Pavon Central south extension drilling intercepted 8.58 g/t gold over 4.0 metres approximately 250 metres along strike outside of the currently defined resources potentially indicating a new ore shoot with potential to grow.
During Q1 2021, Calibre initiated mining at its 100%-owned Pavon Norte open pit mine, the first of three known open pit gold deposits which also includes Pavon Central and Pavon South. Calibre is advancing development and permitting along trend to begin mining at Pavon Central by Q1, 2023 which hosts an average open pit mine reserve grade of 6.49 g/t gold, almost double the grade of Pavon Norte. The planned mine expansion into the Pavon Central zone and the increased gold grade is expected to positively contribute to 2023 and 2024 production growth.
Calibre remains on track and on budget to advance Pavon Central this year with the expectation to achieve mining by Q1, 2023. All mine development capital for Pavon Central is included in the company’s growth capital guidance, which is all self-funded through a strong cash balance of US$78.5 million as of 31Dec21, no debt and 2022 production of between 220,000 and 235,000 ounces. Growth capital for the new Pavon Central mine includes site infrastructure, and road and power line installation and upgrades.