Ottawa approves third pit at Calibre’s Valentine gold mine

Calibre Mining Corp. [CXB-TSXV, CXBMF-OTC] said it has received Federal Environmental Assessment approval for the addition of a third open pit (the Berry Deposit) at its 100% owned Valentine Gold Project in Newfoundland.

Calibre acquired the asset via its recent acquisition of Marathon Gold Corp.

“With this approval and the recent issuance of provincial mining and surface leases for Bery and associated infrastructure, we now have the major approvals required for the three-pit mine plan included in the 2022 feasibility study,’’ said Calibre President and CEO Darren Hall.

In August, 2023, an environmental assessment update was submitted to the Impact Assessment Agency of Canada (IAAC) regarding proposed changes to Valentine to include the Berry pit, and associated infrastructure changes. Following IAAC’s thorough analysis of the submitted update, including the results of consultation with Indigenous groups, communities and stakeholder organizations, and reviewing the results of IAAC’s public comment process, Steven Guilbeault, Minister of Environment and Climate Change Canada, signed an amended decision statement approving the addition of the Berry pit.

Calibre shares were active on the news, easing 4.8% or 10 cents to $1.95. The shares are currently trading in a 52-week range of $2.33 and $1.15.

Valentine is expected to rank as the largest gold mine in Atlantic Canada. A December 2022, updated feasibility study for the project outlined an open pit conventional mining operation, producing 195,000 ounces of gold annually for 12 years within a 14.3-year mine-life.

First gold production is scheduled for the second quarter of 2025.

The project has an estimated proven mineral reserve of 1.43 million ounces (23.36 million tonnes at 1.89 g/t) and a probable reserve of 1.27 million ounces (28.22 million tonnes at 1.40 g/t). Total measured resources (including mineral reserves) stand at 2.06 million ounces.

On Wednesday, Calibre shares rose 2.3% or 17 $0.05 to $2.19 on volume of $2.19 million. The shares trade in a 52-week range of $2.19 and 15.5 cents.

Calibre is an Americas-focused mid-tier gold producer with a pipeline of development and exploration assets across Newfoundland and Labrador in Canada, Nevada and Washington in the U.S.A. and Nicaragua.

The acquisition of Marathon Gold and its Valentine gold project was designed to create a high-growth, cash-flow-focused, mid-tier gold producer in the Americas with expected annual production of 500,000 ounces by 2026.

Prior to the acquisition, Marathon announced the sale of an additional 1.5% net smelter return royalty on its Valentine Gold Project in Newfoundland to Franco Nevada Mining Corp. [FNV-TSX, NYSE] for US$45 million. As a result, Franco-Nevada will hold a 3.0% NSR on the project.