Calibre Mining (CXB.V) must feel pretty well, as the company is exploring no less than three different targets with three different joint venture partners that are throwing their own money at proving up resources.
IAMgold (IAG) has notified Calibre Mining it has started a 5,500 meter drill program which will cost the company $1.5M. Drilling has already started by now and this 2016 drill program at the Eastern Borosi target will follow up on the 81 drill holes that have been completed in 2014 and 2015 on the project. The 2016 program will test the potential to extend the strike length of the mineralized system and will also drill-test the mineralization down plunge to follow up on some high-grade drill results (with for instance almost 13 meters at almost 9 g/t gold and a short 1.4 meter intercept with in excess of 3 ounces of gold per tonne of rock).
Meanwhile, drilling at the Cerro Aeropuerto zone, in a joint venture with Centerra Gold (CG.TO) has returned a stunning 54 meters at 10.47 g/t gold, including 2.7 meters at almost 4 ounces of gold per tonne of rock. This means that in the remaining 51 meters of the hole, the average grade was still a very respectable 4.64 g/t and this will definitely trigger Centerra’s interest as this confirms the previous long interval of 71 meters at almost 3 g/t;
We do expect Calibre’s working capital position to have been reduced to less than C$1M as of at the end of last year, and a capital raise before this summer cannot be excluded at this point in time. That being said, we also consider Calibre Mining to be a buyout candidate as all of its exploration projects are returning excellent drill results.
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The author holds a long position in Calibre Mining. Please read the disclaimer
