Calibre Mining (TSX: CXB) announced on Tuesday the approval of a third open pit at its 100%-owned Valentine Gold Mine known as the Berry Deposit (Berry Pit), in Newfoundland & Labrador.
The company reported receiving Federal Environmental Assessment Approval to include Berry Pit and the associated infrastructure changes at the Valentine mine.
“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,” said Calibre CEO Darren Hall.
“Since acquiring Valentine in January, we have progressed engineering to 98%, advanced construction from 50% to 77%, and employed an experienced operations team, positioning us to deliver first gold in Q2, 2025.”
Valentine comprises a series of mineralized deposits along a 20-kilometre 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 an average gold production profile of 195,000 ounces of gold per year for the first 12 years.
The project has estimated Proven and Probable Mineral Reserves of 2.7 Moz (51.6 Mt at 1.62 g/t Au) and Mineral Resource Estimate for Total Measured and Indicated Mineral Resources (inclusive of the Mineral Reserves) of 3.96 Moz (64.62 Mt at 1.90 g/t Au). Additional Inferred Mineral Resources are 1.10 Moz (20.75 Mt at 1.65 g/t Au).
Calibre expects Valentine, which it acquired through a buyout of Marathon, to be the largest gold mine in Atlantic Canada.
In a note to clients, investment bank Canaccord Genuity said the advancement of the Valentine Gold Mine is “very positive” for the company.
Shares in Calibre Mining fell 4% on Tuesday morning to C$1.95 apiece in Toronto, valuing the company at C$1.54 billion ($1.12 billion).
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