Simon Central And Pantion South Had Higher Mined Grades In Q4

VANCOUVER - Darren Hall, President and Chief Executive Officer of Calibre Mining Corp., said, “The Calibre team delivered another strong quarter to beat the high end of our 2021 production guidance. A solid contribution was delivered from our Pavon open pit deposit, which we permitted, developed, and ramped up production to 1,000 tonnes per day of ore to Libertad mill all within 22 months. Calibre has a compelling value proposition in that we have 2.7 million tonnes of installed processing capacity of which approximately 70% is being utilized. I am very pleased with the significant progress during the year at EBP which I expect to be our next high-grade satellite deposit to feed into our existing infrastructure resulting in 2023 and 2024 production growth.  

As the year progressed, our commitment to growing the Company was enhanced with the announcement of the acquisition of Fiore Gold which closed on January 12, 2022. This transaction builds on our focus to continuously create value for shareholders by bringing a diversified asset base, immediate production and robust growth and exploration upside in Nevada.

With multi-rig exploration drill programs active across all Calibre sites, and development opportunities advancing, we remain committed to reinvesting into mine development and exploration to increase resource confidence, expand resources, make new discoveries, and grow production organically. With $78.5 million in cash pre-transaction, and no debt, we have commenced 2022 well positioned to enable Calibre to continue self-funding growth, exploration, and mine development across all our assets.”

During Q4 2021, most of the open pit production came from Limon Central totaling 193,077 tonnes at an average grade of 4.46 g/t, with material from Pavon Norte contributing 70,440 tonnes at a grade of 2.52 g/t, 174,461 tonnes at 0.96 g/t of previously processed “spent ore”, and 4,582 tonnes at 11.85 g/t from artisanal small miners (“ASM”). By comparison, during Q4 2020, open pit mining consisted of 173,651 tonnes at an average grade of 4.51 g/t from Limon Central, 100,434 tonnes at 3.31 g/t from the Jabali open pit (currently not being mined), 172,159 tonnes grading 0.68 g/t from previously processed “spent ore”, and 10,939 tonnes at 16.97 g/t from ASM and other sources.

For the full year 2021, open pit mine production from Limon Central totaled 787,096 ore tonnes at an average grade of 3.46 g/t, Pavon Norte totaled 304,911 tonnes at a grade of 3.34 g/t, 573,040 tonnes at a grade of 0.96 g/t of previously processed “spent ore”, and 18,619 tonnes at 15.86 g/t from ASM. For comparison, 2020 open pit production from Limon Central totaled 522,962 tonnes at a grade of 4.63 g/t, 367,543 tonnes from the Jabali open pit grading 3.27 g/t, 697,169 tonnes grading 0.75 g/t from previously processed “spent ore”, and 36,867 tonnes from ASM and other sources grading 15.85 g/t.

Underground mine production increased year over year as the Veta Nueva underground mine reached commercial production in January 2021, Panteon South underground mine reached commercial production in July 2021, while the Jabalí West underground mine was suspended until August 2020 which resulted in higher comparative Jabalí production year over year.

Q4 2021 ore production was 56,406 tonnes at a grade of 3.31 g/t from Jabalí West, 11,132 tonnes at a grade of 5.13 g/t from Santa Pancha, 33,049 tonnes at a grade of 8.66 g/t from Panteon South, and 16,806 tonnes grading 3.95 g/t from Veta Nueva. During Q4 2020, the Company mined 29,641 tonnes at a grade of 3.11 g/t from Santa Pancha, 16,136 tonnes grading 3.59 g/t from Veta Nueva, and 25,252 tonnes grading 3.85 g/t from Jabalí West.

Full year ore production was 200,271 tonnes at a grade of 3.42 g/t from Jabalí West, 60,176 tonnes at a grade of 3.73 g/t from Santa Pancha, 82,957 tonnes at a grade of 7.60 g/t from Panteon South, and 65,528 tonnes grading 4.08 g/t from Veta Nueva. In comparison during 2020 the Company mined 90,572 tonnes at a grade of 3.59 g/t from Santa Pancha, 30,958 tonnes grading 4.08 g/t from Veta Nueva, and 27,900 tonnes grading 3.75 g/t from Jabalí West.

In Q4 2021, the Company benefited from higher mined grades at Limon Central and Panteon South underground compared to Q4 2020. Of note, the favorable mining sequence at Limon Central and the mining of higher-grade ore at Santa Pancha, Panteon South, and Veta Nueva in Q4 2021 were significant factors in driving Limon’s mill grade during the quarter.

Tonnes milled for full year 2021 was 67,587 tonnes higher than 2020 due to the temporary pandemic suspension in Q2 of 2020, while the lower grade year over year was due to mine sequencing at the Limon Central ore body, which is the primary source of ore milled at Limon.

During Q4 2021, the Libertad mill produced 29,619 ounces of gold from 456,561 tonnes at an average grade of 2.29 g/t. Tonnes milled increased 75,443 versus Q4 2020 due to the success of the Company’s hub and spoke strategy to transport ore from Limon and Pavon to the Libertad mill, and due to the consumption of spent ore. Processed grade increased due to higher-grade ores delivered from Limon and from 123% more tonnes from Jabalí West.

Libertad mill produced 115,403 ounces during 2021, which was 43,952 ounces higher than 2020, due to significantly higher ore deliveries from Limon, with 372,898 tonnes of ore delivered in 2021 at an average grade of 3.09 g/t compared to 220,623 tonnes at an average grade of 2.80 g/t in 2020. Ore delivery from Pavon Norte to Libertad totaled 245,594 tonnes in 2021.

During Q4 2021, the Company generated $88.1 million of revenue on sales of 49,207 gold ounces, at an average realized price1 of $1,791/oz, compared to Q4 2020 revenue of $79.7 million from the sale of 42,335 ounces. The increased sales volume generated an extra $12.9 million over Q4 2020, which was partially offset by a $4.5 million decrease due to a $91/oz lower price. For the full year 2021, the Company generated $328.1 million on 183,242 gold ounces, compared to 2020 revenue of $242.7 million from 135,357 gold ounces. Significantly higher revenue in 2021 over 2020 was a result of the pandemic-related suspension of operations in Q2 2020 that was previously noted.