Pavon Gold Project

The Pavon property, located in central Nicaragua, is a low sulphidation system. Seventy one historical diamond drill holes totalling approximately 10,700 metres tested veins occurring over a strike length of six kilometres, with results that include 10.3 g/t gold over 16.8 metres in hole PADH-005B in the north zone and up to 6.7 g/t gold over 11 metres in hole PADH-01 in the south zone. During 2009 and 2010, we further explored the Pavon North and South Zones with 56 trenches totalling 1,608 metres. No exploration was carried out on the Pavon properties in 2012. Work was focussed on permitting for the drilling and small scale mining of Pavon.(1)

The Pavon property is located within the Natividad and Las Brisas exploration concessions totaling 31.5km2

After initial site visits and further review Calibre believes there is excellent potential to quickly advance the Pavon Gold Project. Pavon is located approximately 227 km from the El Limon Mine and 300 km from the La Libertad mine. B2Gold had historically and internally studied the potential to open pit mine at Pavon and truck the high-grade material to one of the processing facilities in country. Calibre is in the process of reviewing this potential opportunity and there are no certainties this can be done. Calibre is working on various permits to begin work again on the Pavon project and will be updating the market and progress and milestones are met. Calibre recently updated the NI 43-101 Resource Estimate at Pavon see details below.

December 2019 - Calibre Mining Announced a 318% Increase in the Pavon Gold Project Indicated Resource to 230,000 ounces Grading 5.16 g/t Gold

Table1   Comparison Between 2019 and 2014 Pavon Mineral Resource

  Tonnes (‘000s)   Au Grade (g/t)   Contained Au Ounces (‘000s) 
Indicated Mineral ResourcesDec
2019 (3)
Prior
Report
(1)(2)
Change % Dec
2019 (3)
Prior
Report
(1)(2)
Change % Dec
2019 (3)
Prior
Report
(1)(2)
Change %
Pavon1,388290379 5.165.82-11% 23055318
Inferred Mineral ResourcesDec
2019 (3)
Prior
Report
(1)(2)
Change % Dec
2019 (3)
Prior
Report
(1)(2)
Change % Dec
2019 (3)
Prior
Report
(1)(2)
Change %
Pavon567130336% 3.385.5-38% 6223170%

Notes:
(1)  Mineral Resource estimates were compiled as of November 14, 2014.
(2)  Mineral Resources are constrained within a pit shell and reported above a cut-off grade of 2.0 g/t gold, which was calculated using estimated project costs and a gold price of US$1,500 per ounce.
(3)  Mineral Resources are constrained within a pit shell and reported above a cut-off grade of 1.15 g/t gold, which was calculated using estimated project costs and a gold price of US$1,400 per ounce.

The Company plans to commence resource expansion drilling in July 2020 with a budget of 15,000 metres at an estimated cost of US$3.75 million.

Table 2   2019 Pavon Mineral Resource Summary

ClassificationDomainRock CodeTonnesAu
(g/t)
Ag
(g/t)
Au (Ounces)Ag (ounces)
IndicatedPavon NorthSaprolite260,0003.462.1628,91418,056
Vein612,0003.585.8270,418114,563
Total872,0003.544.7399,332132,619
Pavon CentralSaprolite65,0004.495.319,37411,106
Vein451,0008.3813.88121,469201,191
Total516,0007.8912.80130,843212,297
TotalSaprolite325,0003.662.7938,28829,162
Vein1,063,0005.619.24191,887315,754
Total1,388,0005.167.73230,175344,915

 

       
InferredPavon NorthSaprolite47,0002.414.023,6446,070
Vein113,0003.465.8512,56321,249
Total160,0003.155.3116,20727,318
Pavon CentralSaprolite61,0004.964.489,7208,786
Vein89,0004.209.9812,00728,566
Total150,0004.517.7421,72737,352
Pavon SouthVein257,0002.872.9823,69024,623
Total257,0002.872.9823,69024,623
TotalTotal567,0003.384.9061,62489,293

Mineral Resource Estimate Notes:
(1)  Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards (2014).  Mineral resources that are not mineral reserves do not have demonstrated economic viability.
(2)  This estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
(3)  Open pit Mineral Resources are reported at a cut-off grade of 1.15 g/t gold that is based on a gold price of US$1,400/oz, an operating cost of US$50.68/tonne and a gold processing recovery factor of 94%.
(4)  Appropriate mining costs, processing costs, metal recoveries, and inter ramp pit slope angles were used by WSP to generate the pit shell.
(5)  Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
(6)  Tonnage and grade measurements are in metric units.  Contained gold ounces are in troy ounces.
(7)  Composites completed at 2 m down the hole.
(8)  Contributing assay composites were capped at 29.03 g/t Au at Pavon North, 75 g/t Au at Pavon Central and 17.18 g/t Au at Pavon South.
(9)  A specific gravity value of 2.49 was applied to all blocks in rock and 2.30 was applied to all blocks in saprolite.
(10)  Modeling was performed use in GEOVIA Surpac 2019 software with grades estimated using ordinary kriging (OK) interpolation methodology.
(11)  Blocks are 5x5x5 with 2 sub-blocks.

In 2014, 7 samples from Pavon North were submitted to SGS Lakefield for metallurgical test work with a focus on the amenability of the material to whole ore cyanidation.  The samples responded well to the plant conditions with average gold and silver extraction of 95.4% and 76.3% respectively.

A Technical Report prepared in accordance with NI 43-101 for the Pavon Gold Project will be filed on SEDAR (www.sedar.com) within 45 days of the December 3 2019 News Release.

Pavon Gold Project Plan Map

Highlight Drill Results Expansion Potential

  • 19.37m @ 13.19g/t Au, 7.88m @ 16.12g/t Au, 20.02m @ 4.74g/t Au, 6.40m @ 8.13g/t Au, 3.10m @ 11.18g/t Au, 3.46m @ 6.09g/t Au,  7.57m @ 4.24g/t Au 

Calibre Mining see excellent exploration potential along strike and down plunge on a number of the zones. Additionally a parallel low sulphidation vein structure known as the Victoria zone has limited drilling and excellent potential to expand. Current limited drilling at the Victoria zone includes: 3.10m grading 11.18g/t gold, 3.46m grading 6.09g/t gold, 7.57m grading 4.24g/t gold. All drilling to date has been less than 100m vertically from surface and is open along strike and down plunge.


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