MasterMetals: #Calibre Mining's #Pavon #Gold Deposit Will Be A #Cash Machine! $CXB 🤑💰

March 16, 2021

#Calibre Mining's #Pavon #Gold Deposit Will Be A #Cash Machine! $CXB 🤑💰

Calibre @CalibreMiningCo Announces Positive Pavon Gold Mine Pre-Feasibility Study;

After-tax NPV5% at US$1,700 gold of $106 Million

Pavon Norte Currently in Production; Strong Exploration Potential;

They will be using a portion of the installed 2.2 million tonne per annum capacity at the Libertad mill.

Pavon represents an average of 0.32 million tonnes per annum of mill feed over the next four years, additional mill feed sources include those at Limon and Libertad as per the 2020 PEA leaving an average of 1.5 million tonnes of surplus annual mill capacity over the next four years

As announced on January 21, 2021, Calibre has commenced open pit mining and transporting Pavon Norte ore to its Libertad mill and expects to ramp up production throughout the year.

PAVON OPEN PIT GOLD MINE: —PFS HIGHLIGHTS

•Initial Mine Life 4 years

•Average Life-of-Mine (“LOM”) Throughput 877 tonnes per day

•Average Annual Gold Production 47,000 ounces

•Average LOM Total Cash Costs1 $650 per ounce

•LOM All-In Sustaining Costs (“AISC”) $711 per ounce (net of Ag credits)

•Total Gold Production 188,213 ounces

•After-tax NPV5% ($1,700/oz gold) $106.4 million

•Average LOM Grade 4.86 g/t gold, 7.0 g/t silver

•Average LOM Recovery 94% gold, 35% silver

•Reserve Gold Price $1,400 per ounce

TABLE 4 – PAVON: PFS PRODUCTION AND COST OUTLOOK

	2021	2022	2023	2024	Total
Tonnes Mined (000t)	281	299	424	276	1,281
Waste Mined (000t)	2,235	3,266	4,898	3,556	13,954
Strip ratio (W:O)	7.95	10.91	11.54	12.87	10.89
Tonnes Milled (000t)	281	279	410	311	1,281
Grade Milled (g/t Au)	3.54	3.48	5.85	5.99	4.86
Gold Production (oz)	30,075	29,339	72,615	56,183	188,213
Total Cash Costs1 ($/oz)	849	939	540	536	650
AISC1 ($/oz)	943	939	622	536	711
Non-Sustaining Capital ($m)*	9.45	2.54	-	-	11.99
*Includes 14% contingency.

The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre.

Total capital costs of $20.74 million are split between $11.99 million of non-sustaining and $8.75 million of sustaining capital costs. The $11.99 million in non-sustaining capital costs include a 14% overall contingency.

2021 non-sustaining capital costs of $9.45 million are included in the Company’s growth capital guidance of $35-40 million for the year.

From today’s release:

OPPORTUNITIES
By implementing our ‘Hub-and-Spoke’ operating model and by developing the Pavon gold project, the Libertad Complex processing life has been significantly extended and is now expected to generate robust cash flows over several years.
The Pavon satellite deposit (“Spoke”) feeding into the Libertad Complex represents a portion of the mill feed from 2021 through 2024. The Pavon PFS demonstrates the value of the Company’s operating approach by utilizing the surplus capacity at the Libertad mill, investing in exploration to expand the current mineral resource base at Pavon as well as the opportunity for additional low-cost growth. Over 50% excess mill capacity exists at the Libertad mill underpinning Calibre’s focus on exploration to expand resources and discover new satellite deposits which could provide future mill feed.
Pavon represents an average of 0.32 million tonnes per annum of mill feed over the next four years, additional mill feed sources include those at Limon and Libertad as per the 2020 Preliminary Economics Assessment (“PEA”) (see August 11, 2020 news release for further details) leaving an average of 1.5 million tonnes of surplus annual mill capacity over the next four years as a significant opportunity for organic growth via further conversion of Mineral Resources, exploration success, artisanal ore purchases or toll milling.