Calibre Mining (TSX: CXB) announced on Tuesday the approval of a third open pit at its Valentine Gold mine known as the Berry Deposit in Newfoundland and Labrador.
The company reported receiving federal environmental assessment approval to include Berry and the related infrastructure changes at Valentine.
“With this approval and the recent issuance of provincial mining and surface leases for Berry and associated infrastructure, we now have the major approvals required for the three-pit mine plan included in the 2022 feasibility study,” Calibre CEO Darren Hall said.
Since Calibre acquired Valentine in January, engineering has progressed to 98%, advanced construction from 50% to 77% and a skilled operations team has been brought on board, which prepares the company for first gold in the second quarter of next year, Hall added.
The approval comes several months after Calibre acquired Valentine following a buyout of Marathon Gold. The acquisition is expected to nearly double production for Calibre, as well as diversify its near-term production away from Nicaragua, where the bulk of its producing assets are located. Calibre expects Valentine to become the largest gold mine in Atlantic Canada.
14+ year life
Valentine comprises a series of mineralized deposits along a 20-km trend. The December 2022 feasibility study outlined an open pit mining and conventional milling operation over a 14.3-year mine life with a 22% after-tax rate of return and average gold production profile of 195,000 oz. per year for the first 12 years.
The project has estimated proven and probable reserves of 2.7 million oz. (51.6 million tonnes at 1.62 grams gold per tonne) and 3.9 million measured and indicated oz. (64.62 million tonnes at 1.90 grams gold), inclusive of the reserves. There are also 1.1 million inferred oz. (20.75 million tonnes at 1.65 grams gold).
In a note to clients, investment bank Canaccord Genuity said the advancement of the Valentine mine is “very positive” for the company.
Shares in Calibre Mining fell 3.1% on Tuesday to $1.99 apiece, valuing the company at $1.6.