Calibre Mining's (TSX: CXB; US-OTC: CXBMF) shares rose this morning after the company reported high-grade precious metals intercepts from drill results at the Panteon north zone at its Limon mine in Nicaragua.
Highlights included 5.8 metres (estimated true width of 5.6 metres) grading 66.03 grams gold per tonne, and 50.1 grams silver starting from 306.2 metres in hole LIM-22-4630; and 5.1 metres (5 metres true width) grading 30.33 grams gold and 34.2 grams silver, starting from 288.5 metres in hole LIM-22-4628.
These results were found 1 km northwest of Calibre's Panteon underground mine, where commercial production began in July 2021.
"These results are considerably higher grade than we expected, especially considering the underground reserve grade at Panteon of 7.17 grams gold per tonne," the company's CEO Darren Hall said in a press release. "Panteon North is open down plunge and along strike to the northwest for further expansion."
Situated in the department of Le?OEn, about 100 km northwest of the Nicaraguan capital city of Managua, the El Lim?OEn mining exploitation permit covers an area of 120 sq. km. It includes the Limon central open pit mine and Santa Pancha, Veta Nueva and Panteon underground mines. It also has a processing plant with an annual throughput of 500,000 tonnes.
The Limon complex hosts total probable reserves of 3.6 million tonnes grading 4.47 grams gold per tonne for 529,000 oz. gold. In the indicated resource category, the complex holds 13.5 million tonnes grading 2.69 grams gold for 1.17 million oz. gold, while inferred resources add 1.3 million tonnes grading 4.05 grams gold for 177,000 oz. gold.
The company recently completed a VTEM geophysical survey within the Limon complex which, according to Hall, "demonstrates a significant opportunity for additional discovery and resource expansion along both the Panteon and Santa Pancha vein trends." Currently, the company has five active rigs at Limon and will continue to follow both trends with the new exploration data."
On June 16, Calibre received an environmental permit for the development and production of the company's Pavon central deposit in Nicaragua. In 2021, Calibre initiated production at Pavon Norte, one of the project's three gold deposits. With the latest permit, the miner aims to begin production at the central deposit in the first quarter of 2023.
Scotiabank analyst Ovais Habib described Calibre's latest update as positive as the latest results exceeded Panteon's reserve grade. "Calibre recently announced guidance for 2023 and 2024, however, this guidance does not include Panteon north, so we believe the announcement further highlights Calibre's upside potential for growth," he wrote in a note to clients.
At press time in Toronto, shares of Calibre Mining were trading at $1.15, up 9 ? within a 52-week trading range of $1.02 and $1.90.