Following a 10-week suspension of operations at its El Limon and La Libertad gold mines in Nicaragua, Calibre now expects 2020 gold production of between 110,000 and 125,000 ounces at an all-in sustaining cost (AISC) of between US$1,070 and $1,100/oz. This is about 20% lower than its original guidance of 140,000-150,000oz at an AISC of $1,020-1,060/oz.
Calibre said it had resumed exploration drilling with its programme expanded from 47,000m to 60,000m. In addition, an unbudgeted $2.5 million, 20,000m infill drilling programme is underway aimed at upgrading inferred resources to indicated resources for inclusion in the end of year 2020 mineral reserve and resource estimate.
"The phased restart of operations continues as planned with enhanced safety and health protocols in place and we anticipate reaching steady-state production levels in July," said Calibre president and CEO Russell Ball.
"Despite the fixed-cost nature of the business and an additional $40 per ounce in AISC from the unbudgeted increase in exploration drilling, and the unbudgeted infill drilling programme, we are only guiding to a 4% increase in costs on a per ounce basis, as we see increased benefits from our hub-and-spoke operating philosophy."
Shares in Calibre Mining are trading at C$1.39, valuing the company at $456 million.