Mr. Russell Ball reports
CALIBRE MINING PROVIDES REVISED 2020 PRODUCTION AND COST GUIDANCE: EXPECTS GOLD PRODUCTION OF BETWEEN 110,000 AND 125,000 OUNCES AT TOTAL CASH COSTS1 OF BETWEEN $880 AND $920 AN OUNCE
Calibre Mining Corp. has provided its revised 2020 production and cost guidance following the temporary suspension of operations, as announced on March 25, 2020.
After a 10-week suspension of operations, Calibre now expects 2020 gold production of between 110,000 and 125,000 ounces at total cash costs of between $880 and $920 and all-in sustaining costs of between $1,070 and $1,100 an ounce, respectively (all numbers expressed in U.S. dollars).
The company has resumed exploration drilling with an expanded 60,000-metre program, increased from 47,000 metres. In addition, an unbudgeted 20,000-metre infill drilling program is under way (at sustaining capital costs of approximately $2.5-million) targeting a significant upgrade in inferred to indicated resources for inclusion in the end-of-year 2020 mineral reserve and resource estimate.
Russell Ball, chief executive officer, stated: "The phased restart of operations continues as planned with enhanced safety and health protocols in place and we anticipate reaching steady-state production levels in July. With operations suspended for the majority of the second quarter, we now estimate 2020 gold production of between 110,000 and 125,000 ounces, or approximately 20 per cent less than our original guidance.
"Despite the fixed-cost nature of the business and an additional $40 per ounce in all-in sustaining costs from (i) the unbudgeted increase in exploration drilling, and (ii) the unbudgeted infill drilling program, we are only guiding to a 4-per-cent increase in costs on a per-ounce basis, as we see increased benefits from our hub-and-spoke operating philosophy and are now starting to see the bottom-line impact of our increased focus on operating efficiencies and supply chain management practices."
REVISED 2020 PRODUCTION AND COST GUIDANCE
Original 2020 guidance
Limon Libertad Consolidated (provided on Dec. 4, 2019)
Gold production (ounces) 55,000-62,500 55,000-62,500 110,000-125,000 140,000-150,000
Total cash costs ($/ounce) $800-$840 $950-$990 $880-$920 $840-$890
AISC ($/ounce) $980-$1,020 $1,050-$1,090 $1,070-$1,100 $1,020-$1,060
Growth capital ($ million) $19-$20 $8-$9 $27-$29 $24-$28
Exploration ($ million) $5-$6 $9-$10 $14-$16 $12-$14
G&A ($ million) N/A N/A $7-$8 $6-$7
The company has engaged Roscoe Postle Associates Inc. (RPA, now part of SLR Consulting Ltd.) to prepare a National Instrument 43-101 technical report for Libertad that will allow the company to provide a multiyear production and cost outlook based on the new hub-and-spoke operating philosophy. The company expects to announce the results of the study and file the related technical report around mid-August.
Darren Hall, MAusIMM, senior vice-president and chief operating officer, Calibre Mining, is a qualified person as set out under NI 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 gold mining and exploration company with two 100-per-cent-owned operating gold mines in Nicaragua. The company is focused on sustainable operating performance and a disciplined approach to growth.
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