Calibre Mining (TSX: CXB; US-OTC: CXBMF) has received an environmental permit for the development and production of the company’s Pavon central deposit in Nicaragua.
In 2021, Calibre initiated production at Pavon Norte, one of the project’s three gold deposits. With the latest permit, the miner aims to begin production at the central deposit in the first quarter of 2023.
“The approval of Pavon central marks a significant milestone in the company’s efforts to organically grow production, utilizing a portion of the installed excess capacity at our Libertad mill (located about 300 km away),” Darren Hall, the company’s CEO, said in a press release.
Located about 240 km to the northeast of the capital city of Managua, the combined 2021 end-of-year mineral reserves for the Pavon norte and central open pits total 165,000 oz. averaging 5.07 grams gold per tonne. Pavon central hosts an average reserve grade of 6.49 grams gold.
The central deposit has an indicated resource estimate of 1.4 million tonnes grading 5.16 grams gold and 7.27 grams silver for 231,000 oz. gold and 346,000 oz. silver, based on a study in December 2020. Inferred resources add 577,000 tonnes grading 3.4 grams gold and 4.9 grams silver for 63,000 oz. gold and 91,000 oz. silver.
The company has identified potential for resource expansion along strike and at depth at the project’s vein system within the overall 32-sq.-km land package, where two rigs are currently operating, said Calibre.
“Calibre has advanced engineering studies, mine plans, road construction designs, and socio-environmental initiatives focusing on community resilience, water conservation, and sustainable forestry and ranching,” the company said.
“With road construction to the project underway, Calibre is well-positioned to commence production from Pavon central in the first quarter of 2023,” it added.
Scotiabank analyst Ovais Habib, who follows Calibre, described the company’s latest update as positive because it “provides greater certainty for the company’s mine plans in Nicaragua for 2023 and 2024.
“[Calibre] has approved a $22 million exploration budget for 2022, which includes 85 km of drilling focused on resource expansion and discovery, with nine drills active across the portfolio,” he wrote in a research note to clients on June 16.
At press time in Toronto, shares of Calibre Mining were trading at $1.15 within a 52-week trading range of $1.01 and $2.16.
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