Canadian gold producer Calibre Mining (TSX:CXB) has been granted environmental approval for the Volcan deposit, part of the La Libertad operation in Nicaragua.
Calibre, which has a market capitalisation of C$1.59 billion ($1.73 million), has now received the key environmental permits required for the development and production of the open pit mines at the Volcan deposit.
Calibre has adopted a “hub and spoke” strategy centred around the La Libertad processing plant, which sits 5km from the Volcon deposit.
The La Libertad exploitation concession covers just under 11,000 hectares and was granted by ministerial decree for a 40-year term in 1994.
The operation also comprises the Buenaventura and Cerro Quiroz exploration concessions, which are contiguous with the La Libertad exploitation concession and cover 4,600 hectares.
The La Libertad processing plant can treat around 2.25 million tonnes per annum with gold recoveries currently around 94% to 95% for a blend of spent ore and run of mine ore.
Ore is trucked from the Limon, Pavon and Eastern Borosi gold mines along with ore mined from the Jabali underground mine near the processing plant.
Calibre says the La Libertad plant currently has over 1 million tonnes of surplus processing capacity and therefore benefits from satellite deposits within a 400km radius.
CEO Darren Hall says with Volcon’s initial open pit resource averaging 2 grams per tonne gold, 2023 drilling confirms that the deposit can host higher-grade, near-surface gold mineralisation.
“With receipt of this key permit, combined with Volcan’s proximity to the Libertad mill, which has in excess of 1 million tonnes of surplus capacity, we expect the deposit to contribute to the company’s production profile in the second half of this year,” he says.
Calibre, which is also listed on the OTCQX (OTCQX:CXBMF), has three producing gold mines in the Americas and is targeting 275,000-300,000 ounces of production in 2024.
The company also has a pipeline of development and exploration projects across Newfoundland and Labrador in Canada, Nevada and Washington in the US, and Nicaragua and is aiming to boost annual production to +500,000 ounces.
Write to Angela East at Mining.com.au
Images: Calibre Mining
