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Calibre Mining (TSX: CXB) has reported its second quarter 2024 results, showing that the company is on track to meet its full-year production guidance of 275,000 to 300,000 oz. of gold.
The Valentine gold mine in central Newfoundland, a significant part of this plan, is progressing well towards completion, with construction now over 77% finished as of July 31, 2024. It is expected to start gold production by the second quarter 2025, the company said.
Key recent developments included receiving federal environmental approval and provincial mine and surface leases for the Berry deposit. This means that all major approvals for the current life of mine plan are now in place.
The company has also surpassed 2 million hours worked without a lost time injury at the Valentine site, marking a significant safety milestone.
The Valentine gold mine has a projected mine life of 14.3 years, with a 22% after-tax rate of return and an average gold production of 195,000 oz. per year for the first 12 years. The deposit’s proven and probable mineral reserves are estimated at 2.7 million oz. (51.6 million tonnes at 1.62 g/t gold), within total measured and indicated resources of 4.0 million oz. (64.6 million tonnes at 1.90 g/t gold).
Exploration efforts are ongoing across all of Calibre’s assets, with a focus on expanding the current drill program at the project. Previously disclosed drilling results indicated strong growth potential below and adjacent to existing mineral resources.
“We have expanded the current drill program with 100,000 metres of additional drilling as we begin to unlock the incredible opportunity of resource expansion and discovery potential across the 32-km-long Valentine lake shear zone,” Calibre CEO Darren Hall said in a news release.
In Q2 2024, Calibre’s consolidated gold sales reached 58,345 oz., generating C$137.3 million in revenue, with an average realized gold price of C$2,302 per ounce. The company’s total cash costs were reported at C$1,264 per ounce, while all-in sustaining costs stood at C$1,533 per ounce.
As of the end of June, Calibre held C$127.6 million in cash and restricted cash. Year to date, Calibre has sold 120,122 oz. of gold, generating C$269.2 million in revenue.
