Calibre Mining Corp. [CXB-TSXV, CXBMF-OTC] said Thursday it has been granted a key environmental permit for development and production of the Pavon Central open-pit mine in Nicaragua. It said the permit was issued by the Ministry of Environment and Natural Resources.
During 2021, Calibre initiated mining at Pavon Norte, the first of three known gold deposits hosting mineral resources in the district. Calibre is advancing development at Pavon Central with the aim of starting production in the first quarter of 2023.
Combined 2021 end-of-year mineral reserves for Pavon Norte and Central open-pit mines stood at 165,000 ounces at an average grade of 5.07 g/t. Pavon Central hosts an average reserve grade of 6.49 g/t gold, notably higher than the average 3.28 g/t gold grade a Pavon Norte. As a result, Pavon Central is expected to contribute to the company’s 2023 and 2024 production growth.
Calibre completed the acquisition of Fiore Gold in January, 2022, establishing the company as a multi-asset, multi-jurisdictional gold producer with operations in Washington State, Nevada and Nicaragua.
In October, 2019, Calibre completed the acquisition of 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 the closure of 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.
Additionally, the company has optioned to Iamgold Corp [IMG-TSX, IAG-NYSE] (176 square kilometres) and Centerra Gold Inc. [CG-TSX, CAGDF-OTC] (353 square kilometres) concessions covering an aggregate area of 429 square kilometres and is a party to a joint venture on the 33.6 square kilometre Rosita D. gold-copper-silver project with Rosita Mining Corp.
Major shareholders in Calibre include B2Gold, with 30%, mining financier Pierre Lassonde, and management.
Calibre is targeting production of 220,000 to 235,000 ounces this year, rising to 345,000 ounces in 2024.
“The approval of Pavon Central marks a significant milestone in the company’s efforts to organically grow production, utilizing a portion of the installed excess capacity at our Libertad mill,” said Calibre CEO Darren Hall.
“We will continue to work closely with regulatory authorities, local communities, and all stakeholders to ensure safe and responsible development and mining at Pavon Central,” he said.
With road construction to the project underway, Calibre is well positioned to commence production from Pavon Central in the first quarter of 2023.
Meanwhile, Calibre said it has identified the potential for resource expansion along strike and at depth at the Pavon vein system and at new vein targets within the overall 32 square kilometre land package, where two rigs are currently operating.
On Thursday, Calibre shares were unchanged at $1.14 on volume of 244,440 and currently trade in a 52-week range of $2.16 and $1.01.