‘Junior’ Gold Miner Moves Up a Weight Class With Timely Acquisition of Massive ~5 Million oz Gold Project in Tier One Mining Jurisdiction Canada.

Editorial Feature | April 16, 2024

Calibre Mining (TSX:CXB, OTC:CXBMF) outperformed last year’s projections, producing 283,000 oz of gold in 2023.

With its purchase of the Valentine Gold Project — along with the rest of Marathon Gold — Calibre could nearly double that production by 2025.

Disseminated on behalf of Calibre Mining. Please see “Disclaimer” for important additional information.

At the start of 2023, Marathon Gold controlled one of the most promising proven gold resources discovered in recent years.

The company’s Valentine Project in Newfoundland, Canada gained widespread attention, with nearly 3 million oz of proven and probable mineral reserves, nearly 4 million in measured & indicated mineral resources (including reserves), and over 1 million more inferred mineral resources.

Even if another ounce is never located, the Valentine Gold Project is predicted to produce around 195,000 oz per year, in the first 12 years, for a 22% after-tax profit at $1,700/oz gold, much higher at today’s gold price.1

Even better, 50% of the construction of the project is already complete and on track for gold production by H1 2025.

The only thing this small junior explorer needed was a larger, more experienced company with robust cash flow to get this project over the finish line.

Enter Calibre Mining (TSX:CXB, OTC:CXBMF).

Calibre already has a number of working gold mines throughout the Americas — seeing 283,000 ounces of production in 2023.

The company has nearly $86 million in cash — and strong cash flow from its mines.

Calibre Mining has the resources to invest in and develop the Valentine Gold Project.

And that’s why Calibre Mining Corp (TSX:CXB, OTC:CXBMF) recently announced the acquisition of Marathon Gold — including its 100% interest in the Valentine Project.

Valentine promises to become the largest individual project owned by Calibre.

The gold producer is followed by nine analysts – each forecasting near-term gains from 100% to as high as 220%. 1,2

The company has met or beat operation and financial expectations amongst analysts for 16 straight quarters.

The reason for such optimism is based on a number of compelling facts.

In 2023, they produced nearly 8 metric tons of gold.

That translated into $561.7 million in revenues, about $86 million in operating cash, and $85 million in net income.

This year, between its Nevada gold mine, and Nicaraguan gold mines, Calibre Mining (TSX:CXB, OTC:CXBMF) expects to blow past 2023’s record-setting revenue benchmark, increasing gold production in 2024 to 275,000 – 300,000.

That number is sure to rise when the new Valentine Gold Project comes online — nearly  doubling Calibre’s proven reserves.

Exploration has so far been highly promising.

Just 1 kilometer south of the existing Valentine mine, drilling at the “Frank Zone” show similar geological characteristics to the nearby open pit mine – including some samples which contain visible gold.

Highlights from Frank drilling include: 

  • 39.90 g/t Au over 1.8 metres ETW
  • 12.52 g/t Au over 2.9 metres
  • 10.87 g/t Au over 3.0 metres

Just to the northeast, further exploration of the Leprechaun zone revealed high-grade gold mineralization trending towards the Frank Zone.

A 2022 mineral reserve estimate projected this resource at 15 million tonnes, grading at 1.74 g/t Au.

But based on the results of the initial ore control block model, that number could be much higher.

In fact, it reveals an increase of +15% ore tonnes and an increase of +12% ounces as compared to the 2022 Mineral Reserve.

Highlights from the Leprechaun RC ore control drill program include:

  • 46.53 g/t Au over 5.3 metres
  • 17.16 g/t Au over 7.0 metres
  • 8.82 g/t Au over 4.0 metres

Exploration at these high priority targets confirm the company’s expectations that the Valentine project  is ripe for expansion.

And then, there is another recent catalyst, that has the potential to multiply production.

The Most Overlooked Gold News Of The Year

That Calibre Mining (TSX:CXB, OTC:CXBMF) has been overlooked, even in light of substantial news, is a surprise.

The likely explanation is that the gold market, in general, is being underreported on right now.

  • The current state of the world…
  • The instability of global markets…
  • And investing trends such AI, EVs, and lithium are making the headlines.

As a result, they’ve buried another one of Calibre’s big stories…

Calibre Mining (TSX:CXB, OTC:CXBMF) has increased its Nicaraguan gold reserve by 278%.

That’s more than one million ounces – 1,082,000 oz. net of depletion to be exact.

Plus, Calibre Mining’s latest exploration has discovered gold at very high grades… above 31 grams of gold per ton.

Those are bonanza grade numbers – the markers for a significant discovery.

And the timing couldn’t be better as a series of economic factors come together to push gold prices to new records.

At Over $2,000 An Ounce, Gold Is At A Record High

Now, the frustrating aspect of covering a junior gold producer such as Calibre Mining (TSX:CXB, OTC:CXBMF) is that so much of the story is not about the company.

It’s not about the $30 million in new exploration Calibre Mining has accomplished in 2023…

Or the expansion of its Nevada mine…

Or doubling production and tripling reserves with its purchase of the Valentine Gold Project…

Or its processing plants that have an installed milled capacity to handle nearly 3 million metric tons a year.

Gold’s story is always about price and the factors that influence its price.

The domestic factors keeping gold off the front burner always reverse, and central banks across the globe will likely keep pouring into it, too.

So, that means while gold may be near record highs today, the traditional reasons for driving price higher and higher are not in play yet.

Consider that, when the U.S. Federal Reserve spikes its interest rates, big money typically flows away And yet gold has held its price, and in certain times even increased.

That’s because Treasury Bond rates move somewhat in tandem with the Fed’s rates.

Today, there are two bonds paying over five percent… the 6 month is at 5.30%, the 3 month is at 5.38%.

No matter what the news tells you, full faith in U.S. Treasuries is rock solid.

That means that when rates are high money flows to the safety of treasuries. But, sooner or later, the Fed will begin to lower rates.

When that happens, treasuries are still safe, but yield less – meaning money flows to gold.

So, the big question is this:

What factors have gold near record highs today, even while treasuries are soaring?

The likely answer is that demand is being driven by the world’s central banks.

In fact, last year central banks snapped up gold at the fastest pace since 1967.4

Russia and China were the largest gold buyers over the last two decades. Russia, in particular, accelerated its gold purchases after being hit by Western sanctions following its annexation of Crimea in 2014 and the conflict with Ukraine.5

Countries such as Turkey, India, Kazakhstan, Uzbekistan, Saudi Arabia, and Thailand have also been stockpiling gold, in an effort to hedge against financial and geopolitical risks affecting currencies, primarily the U.S. dollar.6

Investors can thank sellers such as Switzerland, France, Netherlands, and the United Kingdom for seizing the opportunity to maximize profits with stiff prices.7

The Price Keeps Rising, That’s Good For Calibre Mining

Calibre Minings gold processing plant could refine nearly 2.25 million metric tons of raw material a year.

Gold recently crossed $2,100.

If it holds above $2,000 for any length of time, gold will become an investment event…

Not just a gold bug story… 

But news that finally forces investors to take serious notice of the precious metal.

Not only has Calibre Mining (TSX:CXB, OTC:CXBMF) just purchased its most significant project to date.

But, with its other working projects, it has the knowledge and processing capacity to absorb this new find without missing a beat.

Indeed — Calibre overbuilt its processing capacity specifically so it had the bandwidth to bring on more projects.

But before we get too excited about what’s to come, we should acknowledge what’s already working.

After all, it is the cash flow from existing mines that is financing Calibre’s expansion1

Multiple Operating Mines And Two Gold Processing Plants In Nicaragua

Among its winning attributes, Calibre Mining’s Nicaraguan operations include full ownership of four gold projects:  Three of which are working mines, and two of which are gold processing plants.

And, while its Limón mine is flush with 657k oz. of reserves, nearly 1.8 million ounces of indicated resources, and 2.5 million ounces of inferred resources Calibre’s crown jewel in the region is its La Libertad gold mine complex.

La Libertad currently has noted 426,000 oz. in probable reserves, but a recent series of drill results could offer opportunity for an expansion of existing targets. Just 5 kilometers south of the Libertad mill, the company has discovered a substantial mineralized zone.

Highlights from the 2023 Volcan drilling include: 

  • 15.01 g/t Au over 2.6 metres ETW including 22.90 g/t Au over 1.4 metres;
  • 18.84 g/t Au over 3.1 meters, including 31.30 g/t Au over 1.8 meters
  • 6.37 g/t Au over 3.3 metres ETW including 11.87 g/t Au over 1.7 metres

As a reminder, a resource is more of an educated guess about what’s in the ground.

While reserves are lower risk for investors because there is a high degree of geological confidence and consideration of economics.8

So, while La Libertad’s reserves are not the largest of Calibre’s assets, its processing plant is key to the company’s Nicaraguan strategy, as it has the capacity to handle the output from all three working Nicaraguan mines. 

Calibre Mining’s gold processing plant can handle about 2.25 million metric tons of raw material a year.

And it can recover 94% to 95% of the gold hidden in that ore.

That’s a huge bonus. Building a processing plant from scratch could cost $300 million or more.

The Limon Mine

Calibre Mining’s fast expanding El Limón gold mine and gold processing plant. It’s one of four mines and two processing plants Calibre owns there.

The largest of these projects is Calibre’s El Limón Mine.

Limón is a conventional open pit mine with 675,000 oz. of probable reserves. 1.270 million oz. of indicated reserves, and 218,000 oz. of inferred resources. But there are signs of even greater potential.

A recent drill program at the Tigra, Limon Norte and Pozo Bono open pit deposits demonstrate that the entire Limon district remains open for expansion and discovery.

Drill intercept highlights from the Tigra, Limon Norte and Pozo Bono targets include: 

  • 68.72 g/t Au over 2.0 metres Estimated True Width (“ETW”) and 16.49 g/t Au over 5.9 metres ETW including 26.71 g/t Au over 3.5 metres
  • 18.68 g/t Au over 5.9 metres ETW including 55.68 g/t Au over 2.0 metres
  • 12.85 g/t Au over 4.2 metres ETW including 14.00 g/t Au over 3.8 metres
  • 11.91 g/t Au over 3.1 metres ETW including 15.22 g/t Au over 2.2 metres

And just look at these grades from new exploration on the Panteon Project at Limon. They include:

Superior drill intercepts…

  • 111.92 g/t Au over 4.1 metres

Just to add an editorial comment here: 111.92 grams per ton is a significant find.

  • 15.63 g/t Au over 5.7 metres ETW including 33.60 g/t Au over 2.6 metres
  • 36.07 g/t Au over 2.2 metres ETW
  • 9.38 g/t Au over 9.9 metres ETW, including 19.32 g/t Au over 4.5 metres
  • 9.92 g/t Au over 9.6 metres ETW including 19.15 g/t Au over 3.9 metres

It also has a small processing plant – 500,000 tons a year – that could handle any excess that might stress La Libertad’s plant.

The Pavon Mine

After acquiring the property in 2019, Calibre Mining (TSX:CXB, OTC:CXBMF) quickly designed, built, and opened its Pavon Mine.

Pavon has a probable reserve of 120,000 oz. found at about 6.5 g/t Au, along with an indicated resource of 131,000 oz. at 5.8 g/t Au and an inferred resource of 96,000 oz. at 4 g/t Au.

The Eastern Borosi Gold-Silver Property

With it’s newly operating open pit mine and significant land package, the exploration potential could result in substantial discoveries in northeastern Nicaragua

There, the “Mining Triangle” has produced in excess of 8 million oz. of gold but remains significantly under explored.

For $1 million cash, $3 million in shares, and a 2% net smelter royalty on any future production, Calibre Mining acquired a 70% interest in what’s known as its Eastern Borosi Gold-Silver Property.

Former owners spent more than $10 million on exploration, including the filing of an NI 43-101 Technical Report.

The company has since reported probable reserves of 118k oz. of gold and 1.76 million oz. of silver – among six epithermal vein style deposits –averaging 5.18 g/t Au and 77 g/t Ag.

Commitment To The Nicaraguan Community

For many years now, concerns have been raised about mining condition across the globe.

With Calibre Mining, investors are part of a company that realizes the value of its human capital.

Calibre currently generates more than 3,500 safe, stable, good-paying direct and contractor jobs in Nicaragua.

At La Libertad and El Limon, 98% of Calibre’s direct employees are Nicaraguan nationals, and over 75% are from communities located immediately around the mines.

It’s sites also uphold the right of freedom of association. At present, there are three labor organizations at El Limon Mine and one at La Libertad Mine, where 87% and 90% of the employees, respectively, are union members.

And both sites have active collective agreements, negotiated every two years.

Battle Mountain Trend Positions Nevada Amongst The World’s Top Four Gold Producers

With reserves totalling 264,000 ounces, Calibre Mining’s gold mine in Nevada’s Battle Mountain – Eureka gold trend is the smallest of it four working gold mines.

On top of its expansive Nicaraguan holdings, Calibre Mining (TSX:CXB, OTC:CXBMF) has three U.S. properties.

Two of these are at exploration stage in Nevada and Washington state.

Located in the prolific Battle Mountain-Eureka trend, the Pan Mine is listed in Nevada Bureau of Mines and Geology’s publication, under the section titled “Major Mines of Nevada.”

This resource rich trend, when combined with the Cortez trend, have pushed Nevada into the ranks of the world’s top four gold producers.

That’s alongside China, Australia, and Canada.12

The Bureau of Mines reports that Pan’s 2021 output was more than 46,000 ounces, and that the mine employs more than 200 people.

Though on the small side, the Pan mine is impressive because it is pretty much all upside for Calibre.

Though lightly explored, the mine holds 264,000 oz. of proven and probable gold and 359,000 oz. of measured and indicated resources, along with a 42,000 oz. inferred resource.

But the company has bigger plans in mind…

Since it started operating the mine in 2017, Calibre Mining has developed a plan for a new regional exploration program beyond Pan’s two open pit mines.

And now, with the purchase of Marathon Gold and the Valentine Gold Project, Calibre’s production and reserves are set to shoot up dramatically — nearly doubling where it was before.

The Stellar Minds Behind Calibre Mining

Blayne Johnson, Chairman of the Board

There are a handful of people in mining and exploration that investors should never lose sight of. Blayne Johnson is one of these. His private investment company’s founders, and close network have created over $5 billion in value for shareholders in the natural resources sector. He was a Founder and Director of Newmarket Gold that was acquired by Kirkland Lake Gold for $1 billion in November 2016, as well as a founder of Terrane Metals that was acquired by Thompson Creek in 2010 for $750 million.

Darren Hall, President, CEO, Director

Mr. Hall has more than 35 years of mining-industry experience, with a track record of increasing production, reducing costs, improving capital effectiveness. He was Chief Operating Officer of Kirkland Lake Gold, which acquired Newmarket Gold, where he also served as the Chief Operating Officer. Prior to Newmarket Gold, Mr. Hall was an executive with Newmont Mining Corp.

Douglas Forster, Lead Director

During his 35 years in the mining industry, Mr. Forster has acted as a geologist, founder, director, senior executive, and financier. He was Founder, President & CEO of Newmarket Gold, which operated three gold mines in Australia with annual production of over 225,000 oz. a year. Newmarket was acquired by Kirkland Lake Gold in a $1 billion transaction in 2016.

Audra Walsh, Director

A professional engineer with more than 20 years of technical, operating, management and board experience in the mining industry, Ms. Walsh is CEO of Minas de Aguas Tenidas S.A.U. (MATSA), a privately held company owned by Trafigura and Mubadala, located in the Huelva Province, Spain. She was formerly President and CEO of Sierra Metals Inc., Minera S.A. and A2Z Mining, and has held senior positions with Barrick Gold Corporation and Newmont Mining Corporation. Ms. Walsh is a graduate with a degree in Mining Engineering from the South Dakota School of Mines and Technology.

7 Reasons To Consider Calibre Mining (TSX:CXB, OTC:CXBMF)

  1. Undervalued Price Vs. Peer Average – There is no getting around the main reason – At $1,847 EV/oz the company is trading at a significant discount to peer average at $3,760 EV/oz based on production. The company mined more than 200,000 ounces of gold last year and is on track to approach 275,000 ounces this year.
  2. Impressive Revenue Growth –This year you could count on Calibre eclipsing last year’s stellar numbers of $561 million in revenues and $85 million in net income. 
  3. Cash Positive – Calibre has $86 million cash on hand. That’s the kind of liquidity that allows mining companies to mount aggressive exploration programs, finance a future gold mine, and bring it to commercial production. Just as Calibre is doing with the Valentine Project.
  4. Substantial ReservesCalibre’s (TSX:CXB, OTC:CXBMF) gold reserves and resources are impressive. Its three Nicaragua mines combined have a probable reserve of 1,082,000 oz. of gold. Its indicated resources are 1.8 million ounces, and its inferred resources are 2.4 million. Meanwhile, the company’s Valentine Gold Project has nearly 3 million in proven reserves, 4 million in resources, and over 1 million in inferred resources.
  5. Small Footprint, Big Potential In Nevada – The Nevada Bureau of Mines lists Calibre’s Pan mine as a major mine. That’s despite the fact that the mine is lightly explored. Though, the Pan mine holds 264,000 oz. of proven and probable gold and 359,000 oz. of measured and indicated resources, along with a 42,000 oz. inferred resource. Of course, Pan is in the Battle Mountain Trend. The trend is a major reason tiny Nevada is one of the world’s top four gold producers.
  6. High Grade Gold Concentrations – Calibre’s most recently reported exploration results are off the charts. Over a number of miles Calibre found what could be a massive amount of high-grade gold in the 10 g/t Au range to 25 g/t Au. It also found gold concentrated at more than 31 g/t Au – also known as bonanza grade.
  7. Economic Factors Multiply Potential – At $2,000, the price of gold is at historic levels. It’s soaring despite the fact that traditional economic factors are against it. When the brakes come off there could be a rush of institutional money into gold, in turn spiking prices.

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1 https://www.equedia.com/calibre-mining-cxb-near-key-break-out-level-on-chart/
2https://mugglehead.com/calibre-minings-q1-23-financials-show-promising-growth-in-gold-mining-sector-bmo/
3https://goldprice.org/
4https://elements.visualcapitalist.com/charted-30-years-of-central-bank-gold-demand/
5https://elements.visualcapitalist.com/charted-30-years-of-central-bank-gold-demand/
6https://elements.visualcapitalist.com/charted-30-years-of-central-bank-gold-demand/
7https://elements.visualcapitalist.com/charted-30-years-of-central-bank-gold-demand/
8https://thenugget.prospectorportal.com/what-is-the-difference-between-resources-and-reserves
9https://www.calibremining.com/news/calibre-continues-to-expand-the-new-high-grade-gol-5048/
10https://www.calibremining.com/news/calibre-continues-to-expand-the-new-high-grade-gol-5048/
11https://www.calibremining.com/news/calibre-continues-to-expand-the-new-high-grade-gol-5048/
12https://investingnews.com/innspired/nevada-largest-gold-producer/

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FORWARD LOOKING INFORMATION

This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect expectations regarding CXB’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to CXB’s industry; (b) market opportunity; (c) CXB’s business plans and strategies; (d) services that CXB intends to offer; (e) CXB’s milestone projections and targets; (f) CXB’s expectations regarding receipt of approval for regulatory applications; (g) CXB’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) CXB’s expectations regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute CXB’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) CXB’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) CXB’s ability to enter into contractual arrangements; (e) the accuracy of budgeted costs and expenditures; (f) CXB’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption as a result of COVID-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of CXB to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) CXB’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as the COVID-19 pandemic may adversely impact CXB’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing CXB’s business operations (e) CXB may be unable to implement its growth strategy; and (f) increased competition. Except as required by law, the Website Host undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise.

HISTORICAL INFORMATION

Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of CXB or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of CXB or such entities and are not necessarily indicative of future performance of CXB or such entities.