Calibre shares pop on series of Panteon VTEM Corridor discoveries

Calibre Mining’s (TSX: CXB; OTCQX: CXBMF) Toronto-quoted stock rose to a fresh 12-month high Tuesday after reporting a series of discoveries in the Panteon VTEM Gold Corridor of the Limon Mine Complex in Nicaragua.

The first phase of drilling follows the corridor lighting up as prospective during the 2022 VTEM geophysical survey, which at least one analyst notes could add significant resource growth potential come the year-end resource update.

“…the first batch of 2023 high-grade drill results from the multi-kilometre VTEM Gold Corridor…further validate the expansion opportunity,” CEO Darren Hall said in a press release. “At this stage, we have only tested a small portion of the strike extent along the corridor, yet strong potential exists on both the west and east of the resistivity contact.”

The new drill intercept highlights along the Panteon VTEM Geophysical Gold Corridor include notable grades, such as 15.6 grams gold per tonne over 2.5 metres true width in Hole LIM-23-4765, and 21.6 grams gold over 2 metres, including 31.3 grams gold over 1.4 metres in hole LIM-23-4743. The company did not disclose the intercept depths in the release.

The VTEM Corridor is a geophysical feature on the east-west extension of the corridor. The mineralization is held in horst-and-graben blocks, referring to the geological processes that create alternating blocks of raised (horst) and lowered (graben) areas due to faulting and tectonic forces. This formation is relevant because it provides a conducive environment for epithermal gold mineralization, Haywood Securities mining analyst Geordie Mark writes in a note to clients.

 

“Taking this logic a little further out, and considering the VTEM anomaly as a whole, we see exploration potential on the >2-mile-long corridor to continue for years with drill testing within linking structures and along the faulted boundaries of the block,” he said.

The drill plan is ongoing, and the exploration work extends to both the west and east sides of the resistivity contact along the VTEM corridor. Notably, the company has nine drill rigs active across its near mine and satellite targets in Nicaragua.

Mark commented on the early-stage targeting of the VTEM Corridor and the potential for continued exploration along the corridor for years. He highlighted the success rate at this early stage and the presence of mineralization similar to the current operations in the area, expressing confidence in the potential for resource growth.

Calibre has confirmed the results are expected to positively impact the year-end resource statement, which suggests a significant resource growth potential in the area. Overall, the Panteon drill plan appears to be yielding encouraging results.

Calibre reported a third consecutive quarter of production growth last week, and The Northern Miner visited the El Limon mine in March.

Calibre’s Toronto-quoted shares advanced as much as 6% on Tuesday to an intraday high of $1.78 before settling at $1.72 at the closing bell. It has a market capitalization of $782.4 million.