After completing the acquisition of the El Limon and La Libertad mines in Nicaragua from B2Gold last year, Calibre Mining has reported its first quarterly results as a gold producer.
The company reported fourth-quarter production of 33,506 oz. gold at all-in sustaining costs of $959 per oz. Calibre posted a net income of $3.1 million for the quarter on revenue of $57.8 million with an average realized gold price of $1,481 per oz.
For 2020, Calibre forecasts production of 140,000-150,000 oz. gold (70,000 to 75,000 oz. from each of its mines) at total cash costs of $840-890 per oz. or all-in sustaining costs (AISC) of $1,020-1,060 per oz.
The transaction with B2Gold, worth $100 million, closed in October.
In 2020, Calibre plans to advance cost saving opportunities, as well as optimizing and improving production efficiencies at El Limon and La Libertad. This will include managing the mines as integrated operations through implementing a “hub-and-spoke” approach, rather than operating them as stand-alone entities, reviewing supply chain synergies and optimizing contracted services.
El Limon is in Leon department, about 100 km northwest of the capital of Managua, and La Libertad is in Chontales department, about 110 km east of Managua.
In addition to the two producing mines, the company is focused on advancing its Pavon gold project in Matagalpa department, 227 km southwest of El Limon. Pavon hosts indicated resources of 230,000 oz. gold in 1.4 million tonnes grading 5.16 g/t gold, plus additional inferred resources. The company wants to develop the project as an open pit and truck higher-grade material to an existing processing facility. About 10,000 metres of drilling is planned for the project this year.
With a focus on higher margin ounces, Calibre will look at opportunities to haul higher grade ore from various sources, including Pavon, to the La Libertad mill.
The company also has six drill rigs at La Libertad and El Limon focused on resource expansion.
(This article first appeared in the Canadian Mining Journal)