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Calibre announces Gold Rock drill results

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Global Mining Review,

Calibre Mining Corp. has reported previously unreleased results from the remaining nine core holes completed during previous exploration programmes at the newly acquired, 100% owned Gold Rock project in Nevada, USA. These holes were part of a larger reverse circulation (RC) and core programme, but assays have only recently become available due to COVID-19-related delays in processing and assays.

Highlights from the nine HQ exploration drill holes include:

  • South Pit Zone: 2.61 g/t gold (Au) over 37 m, and 0.95 g/t Au over 23.5 m in hole GC20-020.
  • North Pit Zone: 1.22 g/t Au over 8.8 m in hole GC20-016.
  • Northern End – North Pit Zone: 0.88 g/t Au over 19.5 m; 0.35 g/t Auu over 19.6 m; 0.78 g/t Au over 13.4 m; and 0.8 g/t Au over 25.6 m in hole GC20-015.
  • Southern End – North Pit Zone: 0.64 g/t Au over 18.3 m in hole GC20-018.
  • 2022 Drilling: five drill rigs are currently operating between Gold Rock and the adjacent Pan mine.
  • Calibre sees the opportunity to materially expand and accelerate the exploration and resource expansion programmes in Nevada.

Darren Hall, President and CEO of Calibre, stated: “It is exciting to see continued high-grade intercepts from Gold Rock, in particular those which occur outside the previously reported preliminary economic assessment (PEA) pit limits. Since the PEA, which was completed in 2020, numerous holes, within and surrounding, the North and South mineral resource pits have intercepted higher grades than the current mineral resource average grade of 0.7 g/t Au. We see significant resource expansion opportunities at Gold Rock and will continue to advance technical studies and drilling along the prospective 16.5 km mineralised trend. Gold Rock presents an exceptional near-term opportunity to grow production in Nevada, leveraging off management and infrastructure at our Pan mine located approximately 20 km northwest of Gold Rock. We have commenced preparing 2022 budgets for Nevada and see an opportunity to materially expand and accelerate the exploration programmes given the opportunity for resource expansion and continued discovery potential. Currently we have five rigs operating between Gold Rock and the adjacent Pan mine.”

Gold Rock overview and opportunities

The federally permitted Gold Rock project is located approximately 20 km southeast of the Pan mine. In April 2020, a PEA was completed, providing an updated mineral resource estimate and a base case developing Gold Rock as a satellite opencast operation. The PEA demonstrates that Gold Rock is an economically viable project and identified several opportunities to enhance the project economics including additional drilling surrounding the mineral resource zones to improve geological model understanding and increase the mineral resource, further metallurgical testing aimed at improving recoveries and geotechnical drilling to better understand pit angles.

Since the PEA, important progress has been made including technical studies, column leach metallurgical testing with results expected during 1Q22, and RC, HQ and PQ drilling.

  • At base case gold pricing of US$1400/oz, Pre-tax NPV 5% of US$49.7 million, a 22.8% IRR (after-tax NPV 5% of US$32.8 million and a 17.8% IRR) with a life of mine cash flow of US$77.2 million.
  • At US$1500/oz gold price the project returns a pre-tax NPV 5 % of US$78.3 million and a 31.5% IRR (after-tax NPV 5% of US$55 million and a 25.4% IRR) with a life of mine cash flow of US$113.1 million.
  • The updated resource estimate shows a 69% increase in indicated resource to 403 000 Au oz, in addition to the inferred resource of 84 300 Au oz, with excellent potential to grow the resource.
  • Mine life of 6.5 years with life of mine (LOM) total gold production of 362 750 oz, averaging 55 800 oz/yr.
  • LOM cash costs of US$903/oz gold and all-in sustaining costs (AISC) of US$1008/oz Au.
  • Pre-production capital expenditures of US$64.6 million, sustaining capital expenditures of US$7 million and reclamation costs of US$16 million.

Post PEA highlight drill results (2020 and 2021)

Since the announcement of the PEA in April 2020, over 42 000 m of RC, HQ and PQ drilling has been completed. Numerous highlight intercepts have been announced demonstrating the potential to expand resources as some of the results extend beyond the previous mineral resource pit boundaries, within the North and South resource pit designs. In the case of the North pit, mineralisation has been intercepted approximately 400 m north which remains open for further expansion. Hole GR20-010 is located approximately 300 m south of the North Pit resource between the North and South pits, demonstrating the potential to connect the North and South pits. Drilling will continue across the property and within these pits to better understand the opportunity to pull together the zones into a single pit, make new discoveries and expand resources.

North Pit Resource Zone highlight drill results include:

  • 0.62 g/t Au over 15.5 m in hole GC20-009, 0.7 g/t Au over 40.3 m in hole GC20-019.
  • 1.17 g/t Au over 42.7 m in hole GR20-110, 0.99 g/t Au over 18.3 m in hole GR21-001.
  • 2.01 g/t Au over 45.7 m in hole GR21-002, 0.73 g/t Au over 10.7 m in hole GR20-010.
  • 0.97 g/t Au over 41.2 m in hole GR20-027, 1.38 g/t Au over 19.8 m in hole GR20-038.
  • 1.16 g/t Au over 18.3 m in hole GR20-051, 1.1 g/t Au over 19.8 m in hole GR20-029.
  • 1.19 g/t Au over 18.3 m in hole GR20-065, 0.89 g/t Au over 33.5 m in hole GR20-036.
  • 1.23 g/t Au over 16.8 m in hole GR20-021.

South Pit Resource Zone highlight drill results include:

  • 2.85 g/t Au over 24.4 m in hole GC20-005, 0.79 g/t Au over 30.5 m in hole GR20-091.
  • 2.17 g/t Au over 48.8 m in hole GR20-009, 1.41 g/t Au over 32 m in hole GR20-049.
  • 1.11 g/t Au over 38.1 m in hole GR20-068.

During 2021, a new discovery was made 1.4 km north of the North Pit trending toward the Jasperoid Creek target. This is an area with very little previous drilling but with favourable geology and continued evidence of the EZ structure which is associated with gold mineralisation at Gold Rock. A northeast trend of the primary EZ structure continues over a strike length of 16.5 km of prospective geology, structure, and alteration with pervasive gold and pathfinder element anomalies in soil and rock samples.

Jasperiod Creek highlight results

  • 0.96 g/t Au over 18.3 m in hole GR20-102.

The PEA is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves, and there is no certainty that the preliminary economic assessment will be realised.

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