Calibre provides 4Q21 operating results

4Q21 and full year 2021 production and sales

• 4Q21 production of 49 218 oz and sales of 49 207 oz of gold (Au).
• Record production of 182 755 oz, exceeding high-end of production guidance, and sales of 183 242 oz of Au.

Full year 2021 highlights

• Announced the acquisition of Fiore Gold in Nevada, creating a diversified, Americas focused, growing mid-tier gold producer; transaction expected to close 12 January 2022.
• Exceeded the high-end of 2021 production guidance with a strong 4Q21.
• Cash as at 31 December 2021 of US$78.4 million, an increase of US$25.2 million from 31 December 2020.
• Completed the Pavon pre-feasibility study demonstrating a robust satellite ore source feeding into the Libertad mill which has over 50% surplus capacity.
• Commenced low-cost opencast mining at Pavon Norte, increased haulage rates quarter over quarter to Libertad, delivering target of 1077 tpd in September.
• Announced a 200% increase in year-end 2020 reserves to 864 000 oz, representing the largest mineral reserve since 2010 with the highest grade on record of 4.49 g/t Au.
• Advanced technical drilling, land purchases, social and environmental work at the initial resource zones within the Eastern Borosi Project (EBP) and plan to submit permit applications in early 1Q22 for opencast and underground operations, leading to expected 2H23 production growth.
• 2021 high-grade EBP drill results included:
  • 25.1 g/t Au over 9.7 m estimated true width (ETW), 39.2 g/t Au over 3.1 m ETW, 9.1 g/t Au and 19.9 g/t silver (Ag) over 6.5 m ETW, 25.9 g/t Au and 15.3 g/t Ag over 1.9 m ETW, and remains open for expansion.
• Discovered the high-grade Volcan zone located within 5 km of the Libertad Mill, results included:
  • 15.6 g/t Au over 4.9 m ETW and 7.9 g/t Au over 3.4 m ETW, 11.4 g/t Au over 5.4 m ETW and 9.26 g/t Au over 1.7 m and remains open for expansion.
• Announced the 2020 sustainability report and made significant progress on the company’s World Gold Council Responsible Gold Mining Principles self assessment.

2022 Nicaragua production and cost guidance

• Gold production and sales of between 180 000 and 190 000 oz of Au.
• Total cash costs between US$1000 and US$1100/oz.
• All-in sustaining costs (AISC) between US$1100 and US$1200/oz.
• Calibre will provide updated full-year 2022 production and cost guidance incorporating the Nevada operations in 2Q22.

Darren Hall, President and CEO of Calibre, stated: “Calibre exceeded the high-end of full year 2021 production guidance driven by continued successful operational execution. During the year, Calibre generated strong operating cash flows and self-funded significant exploration and mine development while building cash quarter over quarter. Since acquiring the assets in October 2019, we have re-invested into the business which has increased reserves, discovered new deposits, and identified new targets, positioning Calibre to unlock additional mill feed sources and grow production. As we continue our multi-pronged exploration activities across the assets, we realise the prospective and under-explored potential our portfolio has to offer and will continue to re-invest in the business as exploration and resource delineation programmes continue at Libertad, Pavon, Limon, and Eastern Borosi.

“Our goal of becoming a growth oriented, Americas focused mid-tier gold producer continues to advance given our recent agreement to acquire Fiore Gold, providing the next logical step to a robust and jurisdictionally diversified gold producer with three established operations, significant exploration potential and a clear path to growth.”

4Q21 and full year 2021 operating overview

During the quarter, Calibre delivered 935 tpd from the Pavon Norte mine to the Libertad Mill.

Strong cash flows continue to drive the company’s organic growth with multiple rigs turning across Calibre’s concessions and steady progress continues to be made at the high-grade Eastern Borosi Project positioning the Company for expected 2H23 production growth.

Nicaraguan 2022 gold production is forecast to increase q/q with a significant increase during 4Q21. Production in 2H22 is expected to be approximately 20% higher than that of the first half due to change in deposit grade profiles and mine sequencing. As a result, the company expects lower total cash costs and AISC during 2H22. 2022 total cash costs are forecast to be slightly higher than 2021 mainly due to higher forecast fuel, consumables, and labour costs. Growth capital is anticipated to be relatively consistent throughout the year to unlock value at new deposits including the high-grade Pavon Central and Eastern Borosi Project – both expected to increase production and reduce costs in 2023.

Growth capital outside AISC includes underground development at Panteon Central and Atravesada to advance additional mill feed sources; an opencast mine at Pavon Central; Limon Norte and Tigra waste stripping in excess of the planned life-of-mine strip ratio; and land acquisition and early construction activity on the Eastern Borosi Project, which is expected to be the next ‘spoke’ for the Libertad complex.

Calibre will provide updated full-year 2022 production and cost guidance that incorporate the Nevada operations in the second quarter.

Read the article online at: https://www.globalminingreview.com/finance-business/07012022/calibre-provides-4q21-operating-results/