Name of the Project
Valentine gold project.

Location
Central region of Newfoundland and Labrador, Canada.

Project Owner/s
Calibre Mining Corp acquired the project from Marathon Gold in January 2024.

Project Description
An updated feasibility study has presented, for the first time, a three-pit mine plan, based on the Marathon, Leprechaun and Berry deposits, with increased mineral reserves, an extended mine life and a higher gold production profile.

The study proposes the concurrent openpit mining of the deposits.

Average gold production is estimated at 195 000 oz/y over a 14.3-year mine life.

Other aspects of the mine design, such as the site layout, basic mill flowsheet, mill expansion strategy, thickened tailings deposition strategy, 400-person camp and low-cost site power through the NL Hydro power grid, remain as previously conceived in the April 2021 feasibility study.

Potential Job Creation
There will be full-time direct employment of 405 people during peak construction and 522 during operations.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $634-million and an internal rate of return of 22%, with a payback of 2.8 years.

Capital Expenditure
Calibre reported in August 2024 that its optimisation and derisking efforts, combined with accelerating a portion of Phase 2 expansion capital, had resulted in an initial capital cost of C$653-million, a C$145-million increase on Marathon Gold’s 2023 third quarter update. With a C$279-million cost to complete the project as of April 30, 2024, and about C$400-million of cash and restricted cash, the project is fully funded. The company has substantial cash flows from operations.

Planned Start/End Date
The first gold pour is scheduled for the second quarter of 2025.

Latest Developments
Construction of the Valentine gold mine surpassed 77% on July 31, 2024, with a cost to complete of C$211-million, and remains on track for gold production in the second quarter of 2025.

Calibre has reported that during the quarter ended June 30, 2024, it made excellent progress in advancing the construction of the mine, with the semiautogenous mill, ball mill and primary crusher installation well under way. 

A key development recently announced was the receipt of the federal environment approval, and the issuance of provincial mine and surface leases for the development of the Berry deposit and associated infrastructure. With this approval, Calibre now has all the major approvals for the current life-of-mine plan, providing certainty and flexibility to optimise for near-term cash flow.

Extensive exploration drilling is under way across all the company’s assets. Previously disclosed results indicate robust growth potential below and adjacent to the existing mineral resources. Consequently, it has expanded the current drill programme with 100 000 m of additional drilling as it starts to unlock the opportunity of expanding the  resource and discovering potential across the 32-km-long Valentine Lake Shear Zone.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Calibre Mining Corp, tel +1 604 628 1012 or email calibre@calibremining.com.