Press Release
VANCOUVER, British Columbia, May 14, 2024– Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (“Calibre” or the “Company”) is pleased to announce a construction and capital cost update on the Valentine Gold Mine (“Valentine” or “VGM”), located in the central region of Newfoundland & Labrador, Canada. All figures in Canadian Dollars (“C$”) unless otherwise stated.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “I am pleased to announce that construction of our fully funded Valentine Gold Mine is 64% complete and we have progressed detailed engineering to 98% from 60%, with the later having formed the basis of the previously disclosed Marathon Gold capital estimates. With the first gold pour scheduled in Q2 2025, the delivery of Valentine is a paradigm shift for Calibre as we transition to a quality mid-tier gold producer unlocking significant value for all stakeholders.
Since acquiring Valentine in January 2024 we have re-baselined the project schedule, significantly progressed detailed engineering, awarded all major contracts, connected site to permanent power, delivered critical path items including mills and motors, employed the operations leadership team, and commenced pre-commissioning and commissioning activities.
Our project optimization and derisking efforts, combined with accelerating a portion of Phase 2 expansion capital, results in an initial capital cost of C$653 million, a C$145 million increase over Marathon Gold’s Q3 2023 update. With a C$279 million cost to complete as of April 30, 2024 and approximately C$400 million of cash and restricted cash, we are fully funded. In addition, the Company has substantial cash flows from operations.
I am confident the Valentine gold property has district-scale potential, and we anticipate accelerating our exploration efforts in the near term. The Valentine Gold Mine and surrounding property offers a robust resource base and significant discovery opportunities with an extremely prospective array of exploration targets with similar geology to the prolific Val-d’Or and Timmins camps in the Abitibi gold belt.”
Initial Capital Cost Update
Construction and Operational Readiness Highlights
Exploration Highlights
Marathon Initial Capital Cost Estimate History
Updated Feasibility Study (1)
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C$463 million |
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Q2 2023 Construction Report ( 2 ) | C$504 million |
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Q3 2023 Construction Report ( 3 ) | C$508 million |
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Calibre Initial Capital Cost Estimate
May 14, 2024 Initial Capital Cost | C$653 million |
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C$145 million increase vs Marathon’s Q3 2023 estimate due to:
Marathon’s Schedule and Cost Underestimation | C$70 million |
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Calibre’s Project Optimization and Derisking | C$40 million |
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Calibre Advancing Operations and Phase 2 Expansion Capital | C$35 million |
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Calibre will also increase working capital over the next 12 months to materially de-risk the execution of the production ramp-up. Areas of focus for working capital include:
Qualified Person
Mr. Paolo Toscano, P. Eng (Ont.), SVP Engineering, Projects and Construction, is a “qualified person” as set out under NI 43-101 and has reviewed and approved the scientific and technical information in this press release.
About Calibre
Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and Nicaragua. Calibre is focused on delivering sustainable value for shareholders, local communities and all stakeholders through responsible operations and a disciplined approach to growth. With a strong balance sheet, a proven management team, strong operating cash flow, accretive development projects and district-scale exploration opportunities Calibre will unlock significant value.
ON BEHALF OF THE BOARD
“Darren Hall”
Darren Hall, President & Chief Executive Officer
For further information, please contact:
Ryan King
SVP Corporate Development & IR
T: 604.628.1012
E: calibre@calibremining.com
W: www.calibremining.com
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