Calibre secures approval for third open pit at Valentine gold mine in Newfoundland
Calibre Mining (TSX: CXB) has gained approval for a third open pit at its 100%-owned Valentine gold mine in Canada’s Newfoundland and Labrador.
The company reported on Tuesday federal environmental assessment approval to include the Berry deposit and the associated infrastructure changes at Valentine.
“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,” Calibre CEO Darren Hall said in a news release.
“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,” Hall said.
Valentine comprises a series of mineralized deposits along a 20-km trend. A 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 oz. per year for the first 12 years.
The project has estimated mineral reserves of 2.7 million oz. (51.6 million tonnes at 1.62 g/t gold), included in total measured and indicated resources of nearly 4.0 million oz. (64.6 million tonnes at 1.90 g/t gold). There is an additional inferred resource of 1.1 million oz. (20.8 million tonnes at 1.65 g/t gold).
Calibre expects Valentine, which it acquired through a buyout of Marathon Gold, 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).