Construction of the multimillion-ounce Valentine gold mine, in Newfoundland and Labrador, is progressing well, reaching nearly 81% completion by the end of last month, TSX-listed Calibre Mining president and CEO Darren Hall reported on Friday.

However, he also said that cost pressures had emerged, mainly owing to contractor performance, resulting in increased manpower and associated costs.

While the performance issues had been addressed, Calibre stated that the Valentine project’s estimated initial project capital was now forecast to be about C$744-million, compared with a C$653-million estimate in August.

Hall stressed, however, that the project remained fully funded and that Calibre was “confidently tracking” towards mechanical and electrical completion early in the first quarter of 2025.

“With approximately C$300-million in cash and C$197-million cost to complete, the Valentine build remains fully funded and on track for first gold during the second quarter of 2025, representing a significant milestone in Calibre’s strategy to diversify and grow its production in Canada,” he said.

Meanwhile, Calibre lowered its full-year guidance owing to lower-than-expected third-quarter performance of 46 076 oz, comprising 36 427 oz from its Nicaragua operations and 9 639 oz from Nevada, US.

Hall explained that the Nicaragua production fell short of targets because of higher-than-expected historical artisanal mining activity on the initial benches of the Volcan openpit and mine sequencing at Limon.

The consolidated 2024 production guidance had revised to between 230 000 oz and 240 000 oz, from an original guidance of 275 000 oz to 300 000 oz.

Hall stated that ore tonnes and grade from Volcan were now aligning with expectations and the deposit model had been confirmed by infill drilling. Consolidated fourth-quarter gold production is expected to be 70 000 oz to 80 000 oz, driven by Nicaragua’s fourth-quarter mine plans, which indicated significantly higher ore tonnes mined.

Hall said that it expected to build a stockpile of about 30 000 oz at Libertad, which would be processed in 2025.

“We are guiding to finish 2024 approximately 18% below the midpoint of our original production guidance, the 30 000 oz stockpile positions us well for a strong close to the year and a solid start to 2025,” said Hall.