Calibre Announces Positive Pavon Gold Mine Pre-Feasibility Study; Pavon Norte Currently in Production; Strong Exploration Potential; After-tax NPV5% at US$1,700 gold of $106 Million

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(Very Positive)

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Rhea-AI Summary

Calibre Mining Corp. announced the results of its Pavon Open Pit Gold Mine Pre-Feasibility Study (PFS), utilizing the Libertad mill's 2.2 million tonne per annum capacity. Key highlights include:

Mine life: 4 years
Average production: 47,000 ounces of gold annually
Average cash costs: $650 per ounce
After-tax NPV (5%): $106.4 million

With ore deliveries commenced, Calibre expects a consolidated gold production of 170,000 to 180,000 ounces in 2021. Exploration drilling aims to expand resources. The PFS report will be available on SEDAR in March 2021.

Positive

PFS indicates a robust reserve with an after-tax NPV of $106.4 million at $1,700/oz gold.
Average life-of-mine production expected at 47,000 ounces of gold annually, supporting strong cash flows.
Successful ore deliveries initiated, aligning with production guidance of 170,000 to 180,000 ounces for 2021.
Exploration drilling underway, showing potential to increase resource limits beyond initial estimates.

Negative

None.

03/16/2021 - 07:00 AM

VANCOUVER, British Columbia, March 16, 2021 (GLOBE NEWSWIRE) -- Calibre Mining Corp. (“Calibre” or the “Company”) (TSX: CXB; OTCQX: CXBMF) is pleased to announce the results of its Pavon Open Pit Gold Mine Pre-Feasibility Study (“PFS”), utilizing a portion of the installed 2.2 million tonne per annum capacity at the Libertad mill. 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. The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre. All figures are expressed in United States Dollars.

PAVON OPEN PIT GOLD MINE: PFS HIGHLIGHTS

•	Reserve Gold Price	$1,400 per ounce
•	Initial Mine Life	4 years
•	Average Life-of-Mine (“LOM”) Throughput	877 tonnes per day
•	Average LOM Grade	4.86 g/t gold, 7.0 g/t silver
•	Average LOM Recovery	94% gold, 35% silver
•	Average Annual Gold Production	47,000 ounces
•	Average LOM Total Cash Costs¹	$650 per ounce
•	Average LOM All-In Sustaining Costs¹ (“AISC”)	$711 per ounce (net of Ag credits)
•	Total Gold Production	188,213 ounces
•	After-tax NPV_5% ($1,700/oz gold)	$106.4 million

Darren Hall, Chief Executive Officer of Calibre, stated: “In 14 months, since announcing the Pavon open pit resource, Calibre has permitted Pavon Norte, and commenced ore deliveries to the Libertad mill. Over the past two months, the team has safely and steadily increased ore haulage rates in-line with our expectations contributing to the Company’s 2021 consolidated gold production guidance of between 170,000 and 180,000 ounces. Pavon has been a great example of our ‘Hub-and-Spoke’ operating model, by demonstrating how satellite deposits can be efficiently permitted and provide ore to our Libertad mill, extending mine life and generating robust cash flows. Pavon mineralization is open at depth, and along strike, beyond the pit constrained mineral resource limits included in the PFS indicating good potential to expand the resource as exploration drilling advances during 2021.”

Mr. Hall continued, “Given our recent success at Pavon, drilling and technical studies have commenced at the Eastern Borosi Project, which we are progressing to be our next high-grade satellite mine.”

OPPORTUNITIES

Reserves consider no new drill data after December 2015;
Step out drilling underway to expand gold resources along strike and down dip;
Additional resources outside of the reserve mine plan offer potential to extend mine life;
Significant surplus capacity at the Libertad mill;
Underpins potential for low-cost organic production growth.

TABLE 1 – PAVON RESERVE ESTIMATE (DECEMBER 31, 2020)²

Classification	Deposit	Tonnes (‘000 t)	Grade (Au g/t)	Grade (Ag g/t)	Au Ounces (‘000 oz)	Ag Ounces (‘000 oz)
Probable	Pavon Norte	759	3.42	4.33	83	106
Probable	Pavon Central	522	6.96	10.95	117	184
Probable	Total Pavon	1,281	4.86	7.02	200	290

TABLE 2 – PAVON RESOURCE ESTIMATE* (DECEMBER 31, 2020)³

Classification	Deposit	Tonnes (000 t)	Grade (Au g/t)	Grade (Ag g/t)	Au Ounces (‘000 oz)	Ag Ounces (‘000 oz)
Indicated	Pavon Norte	863	3.58	4.77	99	132
Indicated	Pavon Central	529	7.73	12.55	131	213
Indicated	Total	1,392	5.16	7.72	231	346
^{*Indicated Mineral Resources are inclusive of Mineral Reserves.}

Classification	Deposit	Tonnes (000 t)	Grade (Au g/t)	Grade (Ag g/t)	Au Ounces (‘000 oz)	Ag Ounces (‘000 oz)
Inferred	Pavon Norte	98	3.53	6.16	11	19
Inferred	Pavon Central	153	4.46	7.68	22	38
Inferred	Pavon South	326	2.85	3.22	30	34
Inferred	Total	577	3.39	4.90	63	91

TABLE 3 – PAVON: PFS FINANCIAL SENSITIVITY MODEL ($ MILLION, AFTER-TAX)

Gold Price Assumption ($/oz)	1,400	1,500 Base Case	1,700	1,900
Cumulative after-tax free cash flow ($’000)	80,220	92,824	118,032	143,240
After-tax NPV_5% ($’000)	71,760	83,294	106,364	129,433
After-tax NPV_10% ($,000)	64,585	75,211	96,463	117,715

The financial models in the PFS were prepared by SLR Consulting (Canada) Ltd. (formerly Roscoe Postle Associates Inc.). The PFS includes metal price sensitivities detailed in the technical report, which is expected to be published on www.sedar.com in March 2021.

TABLE 4 – PAVON: PFS PRODUCTION AND COST OUTLOOK

2021

2022

2023

2024

Total

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FAQ

What are the PFS highlights for Calibre Mining's Pavon Open Pit Gold Mine?

The PFS highlights include a 4-year mine life, average gold production of 47,000 ounces annually, and an after-tax NPV (5%) of $106.4 million at $1,700/oz gold.