Gold mining and exploration company Calibre, which operates mines in Nicaragua, has exceeded the high-end of its 2020 production guidance and is forecasting a 30% increase in output this year.
The Toronto-listed company produced 136 009 oz and sold 135 357 oz in 2020. The guidance for the year was to produce between 110 000 oz and 125 000 oz. Before the pandemic, Calibre had planned to produce 140 000 oz to 150 000 oz in 2020.
Calibre plans to bolster its output to between 170 000 oz and 180 000 oz in 2021, at an all-in sustaining cost of between $1 040/oz and $1 140/oz.
“I am excited about the 30% production growth we expect to deliver in 2021 as we commence first ore deliveries from our Pavon Norte openpit mine this month. With strong cash flow generation, we will be reinvesting in the business through an increased exploration budget and development of our Panteon and Atravesada underground mines, which are expected to commence ore deliveries before the end of the third quarter of 2021 and 2022, respectively,” said CEO Russell Ball.
Calibre has also started the technical work and expects to start drilling later this quarter at the now 100%-owned Eastern Borosi project. Calibre bought out joint venture partner Iamgold’s 70% interest in the gold/silver property last year and sees it as the next potential “spoke” in its “hub-and-spoke” operating philosophy.
“While not included as part of our August 2020 multi-year outlook, I believe the Guapinol deposit represents the next opportunity for us to deploy our ‘hub-and-spoke’ operating philosophy to generate significant value for all stakeholders,” said Ball.
Calibre has surplus processing capacity of about 1.5-million tonnes a year at the Libertad Complex, which could process material from Eastern Borosi.