VANCOUVER, British Columbia, May  14, 2024  (GLOBE NEWSWIRE) -- Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) ("Calibre" or the "Company") is pleased to announce a construction and capital cost update on the Valentine Gold Mine ("Valentine" or "VGM"), located in the central region of Newfoundland & Labrador, Canada. All figures in Canadian Dollars ("C$") unless otherwise stated.

Darren Hall, President and Chief Executive Officer of Calibre, stated: "I am pleased to announce that construction of our fully funded Valentine Gold Mine is 64% complete and we have progressed detailed engineering to 98% from 60%, with the later having formed the basis of the previously disclosed Marathon Gold capital estimates. With the first gold pour scheduled in Q2 2025, the delivery of Valentine is a paradigm shift for Calibre as we transition to a quality mid-tier gold producer unlocking significant value for all stakeholders.

Since acquiring Valentine in January 2024 we have re-baselined the project schedule, significantly progressed detailed engineering, awarded all major contracts, connected site to permanent power, delivered critical path items including mills and motors, employed the operations leadership team, and commenced pre-commissioning and commissioning activities.

Our project optimization and derisking efforts, combined with accelerating a portion of Phase 2 expansion capital, results in an initial capital cost of C$653 million, a C$145 million increase over Marathon Gold's Q3 2023 update. With a C$279 million cost to complete as of April 30, 2024 and approximately C$400 million of cash and restricted cash, we are fully funded. In addition, the Company has substantial cash flows from operations.

I am confident the Valentine gold property has district-scale potential, and we anticipate accelerating our exploration efforts in the near term. The Valentine Gold Mine and surrounding property offers a robust resource base and significant discovery opportunities with an extremely prospective array of exploration targets with similar geology to the prolific Val-d'Or and Timmins camps in the Abitibi gold belt."

Initial Capital Cost Update

• First gold production scheduled for Q2 2025;

• Updated initial capital cost estimate of C$653 million, an increase of C$145 million versus last reported C$508 million by Marathon Gold Corporation ("Marathon") in Q3 2023;

• The updated estimate is consistent with Calibre's pre-acquisition due diligence and consists of three primary components:

  • Marathon's Schedule and Cost Underestimation of C$70 million;

  • Calibre's Project Optimization & Derisking of C$40 million; and

  • Calibre Advancing Operations & Phase 2 Expansion Capital of C$35 million

• With a C$279 million cost to complete as of April 30, 2024 and approximately C$400 million of cash and restricted cash, we are fully funded. In addition, the company has substantial cash flows from operations.

Construction and Operational Readiness Highlights

• Overall construction progress 64% complete;

• Detailed engineering progressed to 98%;

• Tailings Management Facility starter dam embankment complete and approved by the Engineer of Record and liner placement has commenced;

• Critical path items, including mills and motors, delivered to Newfoundland;

• Site connected to permanent hydroelectric power;

• Mill building enclosed;

• Structural Mechanical Piping ("SMP") and Electrical and Instrumentation ("E&I") contracts awarded;

• Pre-commissioning and commissioning contract awarded; and

• Operations leadership team employed.

Exploration Highlights

• 50,000 metre RC drilling completed at Leprechaun pit and underway at the Marathon pit;

• Diamond drilling recently completed at the Leprechaun SW discovery (see news release dated April 3, 2024);

• Significant district scale exploration potential across 64 km shear zones;

• Target delineation drilling across the shear zones commencing this summer;

• Exceptional exploration potential over the 250 km2 property with similar geology to the prolific Val-d'Or and Timmins camps in the Abitibi gold belt; and

• Strong potential down plunge of existing open pits demonstrates an additional underground mining opportunity outside of the current open pit mine plan.

Marathon Initial Capital Cost Estimate History

Calibre Initial Capital Cost Estimate

C$145 million increase vs Marathon's Q3 2023 estimate due to:

Calibre will also increase working capital over the next 12 months to materially de-risk the execution of the production ramp-up. Areas of focus for working capital include:

• Critical inventory of consumables and critical spares for mining and processing; and

• Development of open pit ore stockpiles to provide consistent and uninterrupted feed to the process plant.

Qualified Person

Mr. Paolo Toscano, P. Eng (Ont.), SVP Engineering, Projects and Construction, is a "qualified person" as set out under NI 43-101 and has reviewed and approved the scientific and technical information in this press release.