Calibre drills satellite gold zone in Nicaragua
Calibre Mining Corp. [CXB-TSXV, CXBMF-OTC] on Tuesday released an update on its 2021 drilling program at the La Libertad Mine and Mill operation in central Nicaragua. It said highlights include the discovery of high-grade gold mineralization along the Volcan trend, located within five kilometres of the Libertad mill.
Volcan Deposit drill results include 15.6 g/t gold over 4.9 metres (estimated true width ETW) from 96 metres and 7.88 g/t gold over 3.4 metres ETW from 116 metres.
Calibre shares were largely unchanged on the news, easing 0.30% or $0.005 to $1.65 on volume of 376,920. The shares currently trade in a 52-week range of $2.61 and $1.26.
The La Libertad Mine is an open pit and underground operations with a capacity of 2.2 million tonnes per year. It sits on a concession that covers an area of 10,937 hectares. The project is located approximately 110 kilometres east of Managua and is accessible by road.
The Libertad mill currently has a surplus capacity and therefore benefits from the availability of satellite deposits within a 300-kilometre radius.
“We are excited to report these latest drill results from our exploration program at Libertad, confirming a second zone of high-grade gold mineralization along the prospective Volcan Trend,” said Calibre President and CEO Darren Hall.
“In addition to delineating a 1.5-kilometre trend of near-surface gold mineralization, the discovery of a high-grade core zone which remains open at depth presents an opportunity to deliver another source of low-cost, high-margin mill feed within close proximity to the Libertad mill,” he said.
“Together with the delineation and resource conversion campaigns at the nearby Tranca and Rosario deposit, we continue to see excellent potential to leverage the plus one million tonnes of excess processing capacity at Libertad.”
The Volcan vein trend is one of several sub-parallel vein structures that extend across the Cosmatillo area, a zone of widespread epithermal style hydrothermal alteration.
The company plans to continue systematic exploration drilling along the Volcan trend, work that will be done in tandem with the generation of new drill targets in the highly prospective Cosmatillo area.
Two years ago, Calibre acquired B2Gold Corp.’s [BTO-TSX, BTG-NYSE] interest in the El Limon and La Libertad gold mines, the Pavon gold project and additional mineral concessions in Nicaragua for US$100 million.
Prior to that deal, Calibre had a 100% interest in over 413 square kilometres of mineral concessions in the Mining Triangle of Northeast Nicaragua, including the Primavera Gold-Copper project and Santa Maria Gold Project.
More recently, Calibre struck a deal to acquire Fiore Gold Ltd. It said the transaction would create a diversified, Americas-focused, growing mid-tier gold producer with targeted annual production of 245,000 ounces at an all-in-sustaining cost of US$1,020 per ounce. The combined company has the comprehensive technical capabilities to exploit a pipeline of development and exploration opportunities across a broader portfolio.