Calibre Mining (TSX: CXB) said on Tuesday that its second-quarter gold production could be negatively impacted following a geotechnical incident at the Limon Norte mine, part of its Limon complex in Nicaragua.

Shares of Calibre fell nearly 6.0% by 2 p.m. in Toronto following the update, giving the mid-tier gold producer a market capitalization of C$1.5 billion ($1.1bn).

The incident occurred on the west wall of the Limon Norte open pit. While the pit wall movement did not impact personnel or equipment, it resulted in a change in the mine’s sequencing, which Calibre said will affect its output.

All other operations at Limon, including the Limon Central open pit and Santa Pancha, Panteon and Veta Nueva underground mines, are unaffected, it added.

Ores from the Limon mines are processed at the El Limón mill, which has an annual throughput of approximately 500,000 tonnes per annum and a historical recovery rate of 94% to 95%.

The company currently anticipates Q2 2024 production to be between 55,000 and 60,000 ounces. With higher-grade ore prioritized in the second half of 2024, it is maintaining its full-year guidance at 275,000-300,000 ounces.

Next year, Calibre will have a second producing asset in the Valentine gold mine in central Newfoundland, for which it recently signed a commissioning contract and is aiming to start in Q1 2025.

Source: MINING.COM – Read More