Calibre Announces Positive Pavon Gold Mine Pre-Feasibility Study; Pavon Norte Currently in Production; Strong Exploration Potential; After-tax NPV5% at US$1,700 gold of $106 Million
03/16/2021 - 07:00 AM
VANCOUVER, British Columbia, March 16, 2021 (GLOBE NEWSWIRE) -- Calibre Mining Corp. (“Calibre” or the “Company”) (TSX: CXB; OTCQX: CXBMF) is pleased to announce the results of its Pavon Open Pit Gold Mine Pre-Feasibility Study (“PFS”), utilizing a portion of the installed 2.2 million tonne per annum capacity at the Libertad mill. As announced on January 21, 2021, Calibre has commenced open pit mining and transporting Pavon Norte ore to its Libertad mill and expects to ramp up production throughout the year. The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre. All figures are expressed in United States Dollars.
PAVON OPEN PIT GOLD MINE: PFS HIGHLIGHTS
• Reserve Gold Price $1,400 per ounce• Initial Mine Life 4 years • Average Life-of-Mine (“LOM”) Throughput 877 tonnes per day • Average LOM Grade 4.86 g/t gold, 7.0 g/t silver • Average LOM Recovery 94% gold, 35% silver• Average Annual Gold Production 47,000 ounces • Average LOM Total Cash Costs1 $650 per ounce• Average LOM All-In Sustaining Costs1 (“AISC”) $711 per ounce (net of Ag credits)• Total Gold Production 188,213 ounces • After-tax NPV5% $1,700 /oz gold) $106.4 million
Darren Hall, Chief Executive Officer of Calibre, stated: “In 14 months, since announcing the Pavon open pit resource, Calibre has permitted Pavon Norte, and commenced ore deliveries to the Libertad mill. Over the past two months, the team has safely and steadily increased ore haulage rates in-line with our expectations contributing to the Company’s 2021 consolidated gold production guidance of between 170,000 and 180,000 ounces. Pavon has been a great example of our ‘Hub-and-Spoke’ operating model, by demonstrating how satellite deposits can be efficiently permitted and provide ore to our Libertad mill, extending mine life and generating robust cash flows. Pavon mineralization is open at depth, and along strike, beyond the pit constrained mineral resource limits included in the PFS indicating good potential to expand the resource as exploration drilling advances during 2021.”
Mr. Hall continued, “Given our recent success at Pavon, drilling and technical studies have commenced at the Eastern Borosi Project, which we are progressing to be our next high-grade satellite mine.”
OPPORTUNITIES
Reserves consider no new drill data after December 2015; Step out drilling underway to expand gold resources along strike and down dip; Additional resources outside of the reserve mine plan offer potential to extend mine life; Significant surplus capacity at the Libertad mill; Underpins potential for low-cost organic production growth. TABLE 1 – PAVON RESERVE ESTIMATE (DECEMBER 31, 2020) 2
Classification Deposit Tonnes Grade Grade Au Ounces (‘000 oz) Ag Ounces (‘000 oz) Probable Pavon Norte 759 3.42 4.33 83 106 Probable Pavon Central 522 6.96 10.95 117 184 Probable Total Pavon 1,281 4.86 7.02 200 290
TABLE 2 – PAVON RESOURCE ESTIMATE* (DECEMBER 31, 2020) 3
Classification Deposit Tonnes (000 t) Grade (Au g/t) Grade (Ag g/t) Au Ounces (‘000 oz) Ag Ounces (‘000 oz) Indicated Pavon Norte 863 3.58 4.77 99 132 Indicated Pavon Central 529 7.73 12.55 131 213 Indicated Total 1,392 5.16 7.72 231 346 *Indicated Mineral Resources are inclusive of Mineral Reserves. Classification Deposit Tonnes (000 t) Grade (Au g/t) Grade (Ag g/t) Au Ounces (‘000 oz) Ag Ounces (‘000 oz) Inferred Pavon Norte 98 3.53 6.16 11 19 Inferred Pavon Central 153 4.46 7.68 22 38 Inferred Pavon South 326 2.85 3.22 30 34 Inferred Total 577 3.39 4.90 63 91
TABLE 3 – PAVON: PFS FINANCIAL SENSITIVITY MODEL ($ MILLION, AFTER-TAX)
Gold Price Assumption ($/oz) 1,400 1,500 Base Case 1,700 1,900 Cumulative after-tax free cash flow ($’000) 80,220 92,824 118,032 143,240 After-tax NPV5% 71,760 83,294 106,364 129,433 After-tax NPV10% 64,585 75,211 96,463 117,715
The financial models in the PFS were prepared by SLR Consulting (Canada) Ltd. (formerly Roscoe Postle Associates Inc .). The PFS includes metal price sensitivities detailed in the technical report, which is expected to be published on www.sedar.com in March 2021.
TABLE 4 – PAVON: PFS PRODUCTION AND COST OUTLOOK
2021 2022 2023 2024 Total
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Industry
Dimension Stone Mining and Quarrying
Sector
Mining, Quarrying, and Oil and Gas Extraction
Tags
Other Metals/Minerals, Non-Energy Minerals
About CXBMF
calibre mining corp (cxb) is a mining and metals company located in 999w hastings st, vancouver, british columbia, canada.
