Darren Hall reports
CALIBRE DELIVERS RECORD FULL YEAR PRODUCTION EXCEEDING HIGH-END OF 2021 GOLD PRODUCTION GUIDANCE DELIVERING 182,755 OUNCES; ANNOUNCES 2022 GUIDANCE, SETTING UP FOR 2023 PRODUCTION GROWTH
Calibre Mining Corp. has released its operating results for the fourth quarter and year ended Dec. 31, 2021, and 2022 production, sales and cost guidance (all financial amounts are in U.S. dollars).
Fourth quarter and full-year 2021 production and sales:
Q4 production of 49,218 ounces and sales of 49,207 ounces of gold;
- Record production of 182,755 ounces, exceeding high end of production guidance, and sales of 183,242 ounces of gold.
Full-year 2021 highlights:
- Announced the acquisition of Fiore Gold in Nevada, creating a diversified, Americas-focused, growing mid-tier gold producer; transaction expected to close Jan. 12, 2022;
Exceeded the high end of 2021 production guidance with a strong fourth quarter;
- Cash as at Dec. 31, 2021, of $78.4-million, an increase of $25.2-million from Dec. 31, 2020;
Completed the Pavon prefeasibility study demonstrating a robust satellite ore source feeding into the Libertad mill, which has over 50-per-cent surplus capacity;
Commenced low-cost open-pit mining at Pavon Norte, increased haulage rates quarter over quarter to Libertad, delivering target of 1,077 tonnes per day (tpd) in September;
- Announced a 200-per-cent increase in year-end 2020 reserves to 864,000 ounces, representing the largest mineral reserve since 2010 with the highest grade on record of 4.49 grams per tonne gold;
Advanced technical drilling, land purchases, social and environmental work at the initial resource zones within the Eastern Borosi project (EBP) and plan to submit permit applications in early first quarter of 2022 for open-pit and underground operations, leading to expected second half 2023 production growth;
- 2021 high-grade EBP drill results included:
- 25.1 g/t gold over 9.7 m estimated true width (ETW), 39.2 g/t gold over 3.1 metres ETW, 9.1 g/t gold and 19.9 g/t silver over 6.5 metres ETW, and 25.9 g/t gold and 15.3 g/t silver over 1.9 metres ETW, and remains open for expansion;
Discovered the high-grade Volcan zone located within five km of the Libertad mill, results included:
- 15.6 g/t gold over 4.9 metres ETW, 7.9 g/t gold over 3.4 metres ETW, 11.4 g/t gold over 5.4 metres ETW and 9.26 g/t gold over 1.7 metres, and remains open for expansion;
Announced the 2020 sustainability report and made significant progress on its World Gold Council responsible gold mining principles self-assessment.
2022 Nicaragua production and cost guidance:
- Gold production and sales of between 180,000 and 190,000 ounces of gold;
- Total cash costs between $1,000 and $1,100 per ounce;
- All-in sustaining costs (AISC) between $1,100 and $1,200 per ounce;
- Calibre will provide updated full-year 2022 production and cost guidance incorporating the Nevada operations in Q2 2022.
Darren Hall, president and chief executive officer of Calibre, stated: "Calibre exceeded the high end of full-year 2021 production guidance driven by continued successful operational execution. During the year, Calibre generated strong operating cash flows and self-funded significant exploration and mine development while building cash quarter over quarter. Since acquiring the assets in October, 2019, we have reinvested into the business, which has increased reserves, discovered new deposits and identified new targets, positioning Calibre to unlock additional mill feed sources and grow production. As we continue our multipronged exploration activities across the assets, we realize the prospective and underexplored potential our portfolio has to offer and will continue to reinvest in the business as exploration and resource delineation programs continue at Libertad, Pavon, Limon and Eastern Borosi.
"Our goal of becoming a growth-oriented, Americas-focused mid-tier gold producer continues to advance given our recent agreement to acquire Fiore Gold, providing the next logical step to a robust and jurisdictionally diversified gold producer with three established operations, significant exploration potential and a clear path to growth."
Fourth quarter and full-year 2021 operating overview
During the quarter we delivered 935 tonnes per day from the Pavon Norte mine to the Libertad mill.
Strong cash flows continue to drive the company's organic growth with multiple rigs turning across Calibre's concessions and steady progress continues to be made at the high-grade Eastern Borosi project positioning the company for expected H2 2023 production growth.
Q4 2021 OPERATING RESULTS
Description Limon Libertad
Ore milled (tonnes) 123,330 456,561
Ore milled grade (g/t Au) 5.59 2.29
Au recovery (%) 89.8% 90.3%
Gold production (ounces) 19,599 29,619
Gold sales (ounces) 19,578 29,629
CONSOLIDATED OPERATING RESULTS
Description Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY 2021
Ore milled (tonnes) 579,891 497,507 461,843 419,340 1,958,581
Ore milled grade (g/t Au) 2.99 3.20 3.11 3.54 3.19
Au recovery (%) 90.1% 92.2% 93.4% 91.3% 91.7%
Gold production (ounces) 49,218 44,579 43,506 45,452 182,755
Gold sales (ounces) 49,207 44,471 43,682 45,882 183,242
2022 NICARAGUA GUIDANCE
Gold production/sales (ounces) 180,000-190,000
Total cash costs ($/ounce) $1,000-$1,100
AISC ($/ounce) $1,100-$1,200
Growth capital ($ million) $45-$50
Exploration capital ($ million) $20 -$22
Nicaraguan 2022 gold production is forecast to increase quarter over quarter with a significant increase during the fourth quarter. Production in the second half of 2022 is expected to be approximately 20 per cent higher than that of the first half due to change in deposit grade profiles and mine sequencing. As a result, the company expects lower total cash costs and AISC (all-in sustaining costs) during the second half of the year. Two thousand twenty-two total cash costs are forecast to be slightly higher than 2021 mainly due to higher forecast fuel, consumables and labour costs. Growth capital is anticipated to be relatively consistent throughout the year to unlock value at new deposits including the high-grade Pavon Central and Eastern Borosi project, both expected to increase production and reduce costs in 2023.
Growth capital outside AISC includes underground development at Panteon Central and Atravesada to advance additional mill feed sources, an open-pit mine at Pavon Central, Limon Norte and Tigra waste stripping in excess of the planned life-of-mine strip ratio, and land acquisition and early construction activity on the Eastern Borosi project, which are expected to be the next spoke for the Libertad complex.
Calibre will provide updated full-year 2022 production and cost guidance that incorporate the Nevada operations in the second quarter.
Fourth quarter and full-year 2021 financial results and conference call details
The fourth quarter and full-year 2021 financial results will be released after market close on Wednesday, Feb. 23, 2022, and management will be hosting a conference call to discuss the results and outlook in more detail:
Date: Thursday, Feb. 24, 2022
Time: 10 a.m. Eastern Daylight Time
Dial-in numbers: 1-866-221-1882 or 1-470-495-9179 (international)
Conference ID: 8699318
The live webcast can be accessed at the company's website under the events and media section under the investors tab. The live audio webcast will be archived and made available for replay at the company's website. Presentation slides, which will accompany the conference call, will be made available in the investors section of the Calibre website under presentations, prior to the conference call.
Darren Hall, MAusIMM, president and chief executive officer, Calibre Mining, a qualified person as set out under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
About Calibre Mining Corp.
Calibre Mining is a Canadian-listed international gold mining and exploration company with three 100-per-cent-owned operating gold mines and strong exploration assets located in highly prospective gold regions across Nicaragua. The company is focused on unlocking resources and generating value through sustainable operating performance and a disciplined approach to growth. Since the acquisition of the Limon and Libertad gold mines, and the Pavon gold project, Calibre has proceeded to integrate its operations into a hub-and-spoke operating philosophy whereby the company can take advantage of reliable infrastructure, favourable transportation costs and multiple high-grade ore sources that can be processed at either Limon or Libertad, which have a combined 2.7 million tonnes of annual mill throughput capacity.
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