11:19:58 EDT Thu 28 Mar 2024
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or Name
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CA



Calibre Mining Corp (2)
Symbol CXB
Shares Issued 42,821,578
Close 2019-01-24 C$ 0.53
Market Cap C$ 22,695,436
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Calibre Mining increases Siuna interest to 100%

2019-01-24 10:15 ET - News Release

Mr. Gregory Smith reports

CALIBRE ACQUIRES A 100% INTEREST IN THE SIUNA GOLD-SILVER-COPPER PROPERTY IN NICARAGUA FROM CENTERRA GOLD

Calibre Mining Corp. has agreed to acquire Centerra Gold's 51-per-cent interest in the Siuna gold-silver-copper property located in northeastern Nicaragua. On closing of the transaction, Calibre Mining will own a 100-per-cent interest in the Siuna property, which contains the Cerro Aeropuerto gold-silver deposit and the past-producing La Luz gold mine, in addition to numerous exploration targets.

Transaction highlights:

  • Calibre Mining has agreed to purchase Centerra's 51-per-cent interest in the 253-square-kilometre Siuna property for two million common shares of Calibre Mining (an approximate 4.5-per-cent equity interest) and a 2-per-cent net smelter return royalty on production from the property.
  • On closing of the transaction, Calibre Mining will own an undivided 100-per-cent interest in the Siuna property, which contains the Cerro Aeropuerto gold-silver deposit, which currently hosts a National Instrument 43-101 inferred resource of 707,750 ounces of gold and 3.1 million ounces of silver, as well as the former La Luz gold mine, with past production of 2.3 million ounces of gold.
  • On closing of the transaction, the major shareholders of Calibre Mining will include:
    • B2Gold Corp. (11.9 per cent);
    • Management and directors (11.1 per cent);
    • Lukas Lundin (8.4 per cent);
    • Centerra (4.5 per cent);
  • Closing of the transaction is subject to approval by the TSX Venture Exchange and other customary conditions.

Property highlights:

  • Cerro Aeropuerto inferred mineral resource -- The NI 43-101-compliant inferred resource at the Cerro Aeropuerto gold-silver deposit contains 707,750 ounces of gold and 3.1 million ounces of silver in 6.05 million tonnes grading 3.64 grams per tonne gold and 16.16 grams per tonne silver at a cut-off grade of 0.6 gram per tonne (please see Calibre Mining news release dated Feb. 28, 2011).
  • La Luz mine (past producer) -- The past-producing open-pit and underground La Luz mine produced 2.3 million ounces of gold and is located one kilometre north of Cerro Aeropuerto.

On closing of the transaction, Calibre Mining will own 2.44 million gold equivalent ounces of inferred resources in four deposits on the Borosi gold-silver projects (please see the company's website for details).

Greg Smith, president and chief executive officer of Calibre Mining, commented: "We are very pleased to have acquired a 100-per-cent interest in the Siuna property. Centerra have been an excellent partner in Nicaragua since 2015 and we welcome them as a Calibre shareholder. The potential of the property is highlighted by the past-producing La Luz gold mine and the existing Cerro Aeropuerto gold-silver deposit. Recent work on the northern portion of the property confirms the district potential for the discovery of gold-silver skarns and gold-silver porphyry mineralization. The northern portion of the Siuna property is contiguous to the currently producing Bonanza gold mine, which hosts epithermal gold-silver vein deposits."

Details of the transaction

The terms upon which Calibre Mining will acquire 100 per cent of property are disclosed herein. Upon closing of the transaction, Calibre Mining will issue to Centerra two million shares, representing a 4.5-per-cent equity interest in Calibre Mining. Centerra will retain a 2-per-cent net smelter return royalty on production from the property, with Calibre Mining having the right to: (i) purchase 1 per cent of the net smelter return royalty for $2-million; and (ii) be granted a first right of refusal on the remaining 1 per cent of the net smelter return royalty.

Closing of the transaction is subject to approval by the TSX Venture Exchange and other customary conditions.

The property

The Siuna property covers an area of 253 square kilometres in the Borosi mining district of northeastern Nicaragua. Siuna is located in the southwest portion of the Borosi concessions and contains the past-producing La Luz gold mine. One kilometre to the south lies the NI 43-101-compliant inferred resource at the Cerro Aeropuerto gold-silver deposit. The property covers a 35-kilometre belt of prospective geology that is similar to the La Luz and Cerro Aeropuerto deposits. Property-wide exploration has outlined a series of additional gold-silver-copper targets.

Cerro Aeropuerto inferred mineral resource

The Cerro Aeropuerto deposit contains gold-bearing and base-metal-bearing quartz veins and replacement-style mineralization. The NI 43-101-compliant inferred resource at the Cerro Aeropuerto gold-silver deposit is provided in the attached table.

Tonnes     Grade Au (g/t)  Grade Ag (g/t)  Grade AuEq (g/t)  Contained Au (oz)  Contained Ag (oz)  Contained AuEq (oz)

6,052,000           3.64           16.16              3.89            707,750          3,144,500              757,000                 

Recent diamond drilling at the Cerro Aeropuerto gold-silver deposit completed subsequent to the resource estimate has returned positive results, including both wide mineralized zones and narrower high-grade intercepts, which includes: (i) 2.07 metres grading 157.2 grams per tonne gold and 117.7 grams per tonne silver as well as 8.12 metres grading 22.47 grams per tonne gold and 10.9 grams per tonne silver in drill hole CA16-022; (ii) 26.03 metres grading 6.39 grams per tonne gold and 9.1 grams per tonne silver in drill hole CA16-020 (please see Calibre Mining news release dated March 22, 2016); and (iii) 77.78 metres grading 1.09 grams per tonne gold and 13.7 grams per tonne silver in drill hole CA17-045 (please see Calibre Mining news release dated Jan. 11, 2018).

Additional diamond drilling completed on the Huracan porphyry gold-copper target, which is located two to three kilometres south of the Cerro Aeropuerto deposit, intersected wide zones of alteration containing porphyry-style gold-copper mineralization, including 189.63 metres grading 0.22 gram per tonne gold and 537 parts per million copper in drill hole HU16-037 as well as 72.23 metres grading 0.27 gram per tonne gold and 881 parts per million copper in drill hole HU16-031 (please see Calibre mining news release dated March 23, 2017).

La Luz gold mine (past producer)

The Siuna property is host to the historic La Luz mine, which is located one kilometre north of the Cerro Aeropuerto deposit. Mineralization at the La Luz mine is hosted by skarn assemblages associated with a series of intrusive bodies. Gold occurs in zones of disseminated and stringer pyrite, chalcopyrite and sphalerite. The mine produced more than 2.3 million ounces of gold from the open-pit level as well as several underground levels developed down to 450 metres below surface. The past producer, which operated primarily between 1912 and 1968, processed 17.1 million tonnes of ore grading 4.14 grams per tonne gold (producing 2.3 million ounces gold).

Mina Victoria gold-copper-silver project

The Mina Victoria project is one of the most advanced exploration projects on the property. Previous work, including prospecting, stream sediment sampling and subsequent soil sampling, has defined a broad gold-copper-arsenic anomaly over an area of three kilometres by four kilometres. The anomalous gold-copper trench results have been traced for hundreds of metres, where anomalous gold-copper assays are associated with highly oxidized zones associated with dikes ranging from two metres to 20 metres in width, which are commonly located in close proximity to steeply dipping faults and shear zones. Significant trench results from this area include 45 metres grading 0.4 gram per tonne gold and 0.19 per cent copper (VTR13-001) as well as 10.2 metres grading 0.7 gram per tonne gold and 0.11 per cent copper (VTR13-021).

Additional exploration targets

Exploration completed over the last four years includes extensive soil sampling covering the entire 253-square-kilometre property, rock sampling, ground magnetic and IP (induced polarization) geophysical surveys, targeted trenching and pit sampling, and limited drilling. This work has identified a series of kilometre-scale precious and base metal anomalies associated with intrusive bodies. Target zones include: (i) the El Dorado trend; (ii) the El Avion target; (iii) Roskilete; (iv) Cerro Asa; and (v) Montes De Oro.

Calibre Mining best practice

Calibre Mining is committed to best practice standards for all exploration, sampling and drilling. Drilling was completed by independent firm Continental Drilling. Analytical quality assurance and quality control include the systematic insertion of blanks, standards and duplicates. Samples are placed in sealed bags and shipped directly to Bureau Veritas Lab in Managua, Nicaragua, for sample preparation and then to Vancouver, Canada, for 50-gram gold fire assay and ICP-MS multielement analyses.

The technical content in this news release was read and approved by Gregory Smith, PGeo, president and chief executive officer of the company, who is the qualified person as defined by NI 43-101.

About Calibre Mining Corp.

Calibre Mining owns a 100-per-cent interest in over 665 square kilometres of mineral concessions in the Mining Triangle of northeast Nicaragua, including the Primavera gold-copper project and Santa Maria gold project.

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