Drilling Update At The Limon, Pantheon, And Jabari Deposits

VANCOUVER - Calibre Mining Corp. reported that drilling resumed early in the third quarter focused initially on resource infill and expansion drilling, to be followed by first-pass drill testing of prospects.  The Company currently has 14 diamond rigs drilling with initial results (post-resumption of drilling in July) from (i) 5,146 meters of infill drilling from the Limon open pit, Panteon underground and Jabali West underground deposits, located in Nicaragua, and (ii) 3,474 meters of initial resource expansion and exploration drilling at the Rosario and Tranca prospects at Libertad, in Nicaragua.

Panteon Underground Deposit Infill Drilling Results: 149.36 g/t Au over 4.8 meters Estimated True Width (“ETW”) from 314.1 to 319.5m in LIM20-4444; 13.71 g/t Au over 2.8 meters ETW from 232.6 to 236.6m in LIM20-4446; and 7.69 g/t Au over 3.4 meters ETW from 219.6 to 223.6m in LIM20-4451.

Limon Open Pits Infill Drilling Results: 14.79 g/t Au over 3.3 meters ETW from 34.6 to 38.7m in LIM20-4439; 9.57 g/t Au over 4.4 meters ETW from 25.4 to 30.1m in LIM20-4443; 7.21 g/t Au over 7.6 meters ETW from 57.4 to 65.0m; and 6.29 g/t Au over 5.2 meters ETW from 74.4 to 79.6m, both in LIM20-4447.

Jabali West Underground Deposit Infill Drilling Results: 7.54 g/t Au over 1.7 meters ETW from 296.3 to 298.2m; and 5.46 g/t Au over 7.3 meters ETW from 307.1 to 315.1m, both in JB20-492.

Rosario Gold Prospect Initial Resource Expansion & Exploration Drilling Results: 2.23 g/t Au over 4.4 meters ETW from 162.8 to 167.8 m in RS20-048; 2.10 g/t Au over 2.8 meters ETW from 179.8 to 182.9 m in RS20-049; and 2.32 g/t Au over 7.4 meters ETW from 128.3 to 138.4 m in RS20-051.

Tranca Gold Prospect Initial Resource Expansion & Exploration Drilling Results: 1.07 g/t Au over 3.8 meters ETW from 184.7 to 189.7m in TR20-013.

Russell Ball, Chief Executive Officer, said, “With roughly 10% of the expected assays in hand, I am encouraged with the numerous opportunities in front of us.  The drilling program has ramped up nicely and we expect to be drilling approximately 12,000 meters a month for the balance of the year. At Panteon, we are outlining two distinct, high-grade ore shoots, including a new, bonanza grade intercept of 149.4 g/t gold over 4.8 meters.  We recently transitioned from infill drilling to resource expansion drilling along strike to the southeast where the Panteon and Santa Pancha veins intersect, as well as down plunge at both high-grade ore shoots. Over the past quarter, we have advanced development from Santa Pancha to Panteon and expect to begin mining ore from Panteon in the first quarter of 2021, which will be processed at the Libertad Complex as part of our ‘Hub-and-Spoke’ strategy to maximize value.”

Panteon is located approximately 150 meters west of the Santa Pancha underground mine.  Calibre has received assay results for the first nine infill holes, all of which intercepted moderate to strong gold mineralization over true vein widths ranging from one to five meters, generally confirming expected vein thickness and grade continuity.  Approximately 250 metres northwest of the area where drilling focused during the first quarter of 2020, a second ore shoot appears to be emerging as evidenced by the 149.4 g/t Au over 4.8 meters ETW reported from LIM-20-4444.

Calibre is now transitioning from resource infill to step-out exploration drilling to test the potential for additional high-grade mineralization both down plunge of the known ore shoots and to identify additional ore shoots in both directions along strike of the main Panteon vein structure.  

In June, Calibre announced a maiden resource estimate which contained an Indicated Mineral Resource of 90,000 tonnes at an average grade of 9.88 g/t Au for 29,000 contained ounces, with an additional Inferred Mineral Resource of 303,000 tonnes at an average grade of 6.79 g/t Au for 66,000 contained ounces.

During the first quarter of 2020, the Company commenced development of a crosscut to connect Panteon with existing infrastructure at Santa Pancha.  A total of 280 meters of underground development has been completed, putting the Company in an excellent position to begin mining ore from Panteon in the first quarter of 2021.

The Limon open pit deposits occur as a series of structurally controlled ore shoots distributed along a more than two kilometer, northerly trending fault system in the central part of the Limon district.  Since the previous set of drill results were reported in the second quarter of 2020, Calibre has completed twelve additional diamond drill infill holes totaling 1,971 meters.  Results for these first 12 holes (from 45 planned infill holes), including one at Limon Central, nine at Limon Norte and two at Tigra-Chaparral: Five of the nine holes at Limon Norte intercepted strong gold mineralization peripheral to a historic underground mine stope in the central portion of the inferred resource, including LIM20-4439 which returned 3.3 meters ETW averaging 14.78 g/t Au and LIM20-4447 which returned 7.6 meters ETW averaging 7.21 g/t Au.

As of December 31, 2019, open pit mineral reserves along the Limon trend included Probable Reserves of 1.4 million tonnes grading 4.25 g/t Au containing 195,000 ounces gold.  Additional open pit mineral resources include Indicated resources totaling 0.5 million tonnes grading 4.29 g/t Au containing 62,000 ounces gold (exclusive of mineral reserves), and Inferred resources totaling 3.8 million tonnes grading 5.49 g/t Au containing 679,000 ounces gold.  Results of the combined infill and step-out exploration drilling will be integrated into an updated mineral resource estimate prepared as of December 31, 2020.

The Jabali West deposit is located directly below the Jabali Antena open pit.  Since the re-start of drilling, Calibre has completed 17 holes totaling 2,700 meters of infill drilling.  Results for the first two of these holes indicate that grade continuity and thicknesses are in line with expectations, including 7.3 meters ETW averaging 5.46 g/t Au in JB20-492, drilled along the lower limit of the currently defined inferred mineral resource.

The resource remains open along strike and down plunge to the west.  Following the completion of the infill program at the end of August, Calibre initiated step-out drilling to test the potential to extend the resource down plunge to the west.  Results of the combined infill and step-out exploration drilling will be integrated into an updated mineral resource estimate prepared as of December 31, 2020.

As of December 31, 2019, the Jabali West Inferred Mineral Resource totaled 1.2 million tonnes averaging 7.87 g/t Au containing 315,000 ounces of gold. As the infill drilling program completes, the Company is shifting its focus to resource growth opportunities, including: Near-mine extensions to open pit resources along the Limon trend and the high-grade Panteon and Jabali West underground deposits; Resource expansion at partially explored prospects such as the Rosario deposit at Libertad, the Atravesada deposit at Limon and the Pavon North and Central deposits; and Follow up drilling at the early stage Tranca, Nancite and Amalia prospects.

In addition, new targets are being readied for first pass drill testing during the fourth quarter at the Cosmotillo, Escandalo-Carmen and San Juan-Los Angeles vein trends at Libertad.

The Rosario deposit is located approximately six kilometers southwest of the Libertad mill and currently hosts an Inferred resource of 260,000 tonnes grading 2.08 g/t Au containing 17,000 ounces of gold.  Step out drilling to expand the resource laterally and at depth has intercepted significant gold mineralization in three of the five holes received to date.  Results for nine additional step out holes completed in August will be reported in the coming weeks after assay results are received.

The Rosario deposit is localized along a major northeasterly trending structure that marks the northern margin of the Cosmotillo vein system.  During the first quarter of 2020, Calibre initiated a comprehensive field and data review of available surface and drill hole information to better understand the relationship between structural controls to gold mineralization and related hydrothermal alteration.  This work resulted in the recognition of the Cosmotillo area as an eight-plus square kilometer zone of barren silica-clay lithocap style alteration that characteristically overlies unexposed bonanza style epithermal gold mineralization, such as the vein systems at Jabali and Panteon.

Calibre recently commenced drilling a series of deeper holes, approximately 150 meters below the current Rosario mineral resource, to test the potential for higher grade, bonanza style gold mineralization at depth.  The Company also identified several additional blind, bonanza style vein targets which are being advanced for drilling in the fourth quarter.

The Tranca prospect follows a four kilometer east-west trending structure located approximately five hundred meters south, and parallel to, the Jabali vein trend.  Prior to Calibre’s acquisition of Libertad in October 2019, exploration along the Tranca structure was limited to widely spaced surface trenching.  Since the re-start of drilling early in the third quarter, Calibre has drilled an additional 19 holes totaling 5,584 meters of first pass exploration drilling focused on the upper 125 meters of a one kilometer section of the four kilometer east-west trending structure.  The drilling results in combination with previously reported results will be evaluated to determine whether additional exploration work at Tranca is warranted.