Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) is pleased to announce the results of its Pavon Open Pit Gold Mine Pre-Feasibility Study, utilizing a portion of the installed 2.2 million tonne per annum capacity at the Libertad mill. As announced on January 21, 2021, Calibre has commenced open pit mining and transporting Pavon Norte ore to its Libertad mill and expects to ramp up production throughout the year. The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre. All figures are expressed in United States Dollars.

PAVON OPEN PIT GOLD MINE: PFS HIGHLIGHTS

Darren Hall, Chief Executive Officer of Calibre, stated: “In 14 months, since announcing the Pavon open pit resource, Calibre has permitted Pavon Norte, and commenced ore deliveries to the Libertad mill. Over the past two months, the team has safely and steadily increased ore haulage rates in-line with our expectations contributing to the Company’s 2021 consolidated gold production guidance of between 170,000 and 180,000 ounces.  Pavon has been a great example of our ‘Hub-and-Spoke’ operating model, by demonstrating how satellite deposits can be efficiently permitted and provide ore to our Libertad mill, extending mine life and generating robust cash flows. Pavon mineralization is open at depth, and along strike, beyond the pit constrained mineral resource limits included in the PFS indicating good potential to expand the resource as exploration drilling advances during 2021.”

Mr. Hall continued, “Given our recent success at Pavon, drilling and technical studies have commenced at the Eastern Borosi Project, which we are progressing to be our next high-grade satellite mine.”

OPPORTUNITIES

• Reserves consider no new drill data after December 2015;
• Step out drilling underway to expand gold resources along strike and down dip;
• Additional resources outside of the reserve mine plan offer potential to extend mine life;
• Significant surplus capacity at the Libertad mill;
• Underpins potential for low-cost organic production growth.

TABLE 1 – PAVON RESERVE ESTIMATE (DECEMBER 31, 2020)²

TABLE 2 – PAVON RESOURCE ESTIMATE* (DECEMBER 31, 2020)³

TABLE 3 – PAVON: PFS FINANCIAL SENSITIVITY MODEL ($ MILLION, AFTER-TAX)

The financial models in the PFS were prepared by SLR Consulting (Canada) Ltd. (formerly Roscoe Postle Associates Inc.). The PFS includes metal price sensitivities detailed in the technical report, which is expected to be published on www.sedar.com in March 2021.

TABLE 4 – PAVON: PFS PRODUCTION AND COST OUTLOOK

CAPITAL COSTS

Total capital costs of $20.74 million are split between $11.99 million of non-sustaining and $8.75 million of sustaining capital costs. The $11.99 million in non-sustaining capital costs include a 14% overall contingency.

2021 non-sustaining capital costs of $9.45 million are included in the Company’s growth capital guidance of $35-40 million for the year.

OPERATING COSTS

The PFS is based on reserves from the Pavon Norte and Central open pit deposits being trucked to the Libertad processing mill. The reported AISC¹ includes average LOM mining costs of $2.36/ tonne mined, processing costs of $22.00/tonne milled plus $2.50/tonne tailings costs, $5.00/tonne milled G&A and $32.00/tonne milled ore transportation costs as well as sustaining capital and closure costs mentioned previously.

OPPORTUNITIES

By implementing our ‘Hub-and-Spoke’ operating model and by developing the Pavon gold project, the Libertad Complex processing life has been significantly extended and is now expected to generate robust cash flows over several years.

The Pavon satellite deposit feeding into the Libertad Complex represents a portion of the mill feed from 2021 through 2024. The Pavon PFS demonstrates the value of the Company’s operating approach by utilizing the surplus capacity at the Libertad mill, investing in exploration to expand the current mineral resource base at Pavon as well as the opportunity for additional low-cost growth. Over 50% excess mill capacity exists at the Libertad mill underpinning Calibre’s focus on exploration to expand resources and discover new satellite deposits which could provide future mill feed.

Pavon represents an average of 0.32 million tonnes per annum of mill feed over the next four years, additional mill feed sources include those at Limon and Libertad as per the 2020 Preliminary Economics Assessment (see August 11, 2020 news release for further details) leaving an average of 1.5 million tonnes of surplus annual mill capacity over the next four years as a significant opportunity for organic growth via further conversion of Mineral Resources, exploration success, artisanal ore purchases or toll milling.

The Pavon project represents a newly emerging gold district in Nicaragua in a region that has remained largely underexplored by modern methods. Historical exploration focused on delineating resources within the near surface portions of the Pavon Norte, Central and South deposits where indicated resources totaling 231,000 ounces of gold averaging 5.16 g/t have been delineated within the upper 100 meters.

Pavon Norte and Central in combination with the Pavon South vein system also host additional inferred resources totaling 63,000 ounces of gold averaging 3.39 g/t. Exploration drilling initiated by Calibre in Q4 2020 has returned positive results from several step-out holes drilled along and beyond the margins of the currently defined open pit reserves, demonstrating that significant potential exists to expand mineral resources along strike and down dip at both deposits (see February 23, 2021 news release and figures). Two diamond drill rigs are currently testing the potential for lateral and vertical extensions and to the Pavon Norte and Central vein systems. The Company’s exploration team is also actively conducting field surveys to identify areas with potential for new gold discoveries within the project area. Calibre looks forward to providing further updates as exploration at Pavon continues to advance.

Link – Pavon Exploration

Technical Report and Qualified Person

The PFS was undertaken by WSP in Canada in 2020 and 2021 on behalf of Calibre. This news release has been reviewed and approved by Todd McCracken, P.Geo. of BBA E&C Inc (formally of WSP QP for Pavon Geology/Mineral Resources), Shane Ghouralal, MBA, P.Eng. (WSP QP for Pavon Mining/Mineral Reserves and Infrastructure), and Isabelle Larouche,– P.Eng. (WSP QP for Pavon Metallurgical Testing/Mineral Processing) as well as Grant A. Malensek, P.Eng. of SLR Consulting (Canada) Ltd. (SLR QP for Pavon Economic Analysis).

A La Libertad Technical Report prepared by SLR Consulting (Canada) Ltd., (formerly Roscoe Postle Associates Inc.) in accordance with NI 43-101 which will include the Pavon pre-feasibility study results will be filed on SEDAR (www.sedar.com) within 45 days of this news release. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

Darren Hall, MAusIMM, President & Chief Executive Officer, Calibre Mining Corp. is a “Qualified Person” as set out under NI 43-101 has reviewed and approved the scientific and technical information in this press release.

About Calibre Mining Corp.

Calibre Mining is a Canadian-listed gold mining and exploration company with two 100%-owned operating gold mines in Nicaragua. The Company is focused on sustainable operating performance and a disciplined approach to growth. Since the acquisition of the Limon, Libertad gold mines and Pavon Gold Project, Calibre has proceeded to integrate its operations into a ‘Hub-and-Spoke’ operating model, whereby the Company can take advantage of reliable infrastructure, favorable transportation costs, and multiple high-grade mill feed sources that can be processed at either Limon or Libertad, which have a combined 2.7 million tonnes of annual mill throughput capacity.