Q1 2024 Calibre Mining Corp Earnings Call

Operator: Hello and welcome to the Calibre Mining Corp. 2024 Quarter 1 Conference Call and Valentine Gold Mine Update. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. And to withdraw from the queue, please press star, then 2. As a reminder, this conference is being recorded. I would now like to hand the call to Ryan King. Please go ahead.

Hello, and welcome to the calibre mining Corp, 'twenty 'twenty four for quarter, One conference call and Valentine Goldmine update.

Speaker Change: All participants will be in listen only mode.

Speaker Change: Should you need assistance. Please signal a conference specialist by pressing the star followed by zero.

Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw from the queue. Please press Star then two.

Speaker Change: As a reminder, this conference is being recorded.

Speaker Change: I would now like to hand, the call to Brian King. Please go ahead.

Ryan C. King: Thank you operator.

Ryan C. King: Good morning, everyone, and thank you for taking the time to join the call this morning. Before we begin, I'd like to direct everyone to the forward-looking statements on slide two. Our remarks and answers to your questions today may contain forward-looking information about the company's future performance. Although management believes that our forward-looking statements are based on fair and reasonable assumptions... actual results may turn out to be different from these forward-looking statements. For a complete discussion of the risks, uncertainties, and factors that may lead to actual operating and financial results being different from the estimates contained in our forward-looking statements, please refer to the Q1 2024 MD&A and Consolidated Financial Statements available on our website, as well as on CDAR Plus.

Ryan C. King: Good morning, everyone and thank you for taking the time to join the call. This morning.

Ryan C. King: Before we commence I'd like to direct everyone.

Ryan C. King: These are forward looking statements on slide two.

Ryan C. King: Our remarks and answers to your questions today may contain forward looking information about the company's future performance.

Ryan C. King: Although management believes that our forward looking statements are based on fair and reasonable assumption.

Ryan C. King: Actual results May turn out to be different from these forward looking statements.

Ryan C. King: For a complete discussion of the risks uncertainties and factors, which may lead to actual operating and financial results being different from the estimates contained in our forward looking statements.

Ryan C. King: Please refer to the Q1 'twenty 'twenty four M D N a and consolidated financial statements.

Ryan C. King: Bailable on our website.

Ryan C. King: As well as on our part.

Ryan C. King: And finally, all figures are in US dollars unless otherwise stated. Present today on the call are Darren Hall, President and Chief Executive Officer. David Splett, Senior Vice President and Chief Financial Officer, and Tom Gallo, Senior Vice President of Growth. We will be providing comments on the First Quarter. 2024 result, and Valentine Goldmine Update. Following yesterday's news releases, we will discuss capital costs and project updates, after which we'll be happy to take questions.

Ryan C. King: Finally, all figures are in U S dollars unless otherwise stated.

Ryan C. King: Present today with me on the call Darren Hall, President and Chief Executive Officer.

Speaker Change: David split senior Vice President and Chief Financial Officer.

And Tom Gallo Senior Vice President of growth.

Speaker Change: We will be providing comments on that.

Speaker Change: First quarter.

Speaker Change: 2024 result.

Speaker Change: And Valentine Goldmine update.

Speaker Change: Following yesterday's news releases, we will just discuss capital costs and project updates after which we'll be happy to take questions.

Ryan C. King: The slide deck we will be referencing is available on our website at calibrelining.com under the events section. You can also click on the webcast to join the live presentation. With that, I'll turn the call over to Derek.

Speaker Change: The slide deck, we will be referencing is available on our website at caliber mining dot com under the events section you can also click on the webcast during the live presentation.

Speaker Change: With that I'll turn the call over to Derek.

Derek: Thanks Ryan. Moving to slide three. Good morning, and thank you for taking the time to join us today.

Derek: Thanks, Brian moving to slide three.

Good morning, and thank you for taking the time to join us today.

Darren Hall: Firstly, I'd like to thank all Calibre employees and business partners for their continued efforts and focus during what has been a very busy quarter. First, I want to acknowledge and I'm proud to make particular mention of the Valentine team for their outstanding safety performance, which was recognized on Monday when the Canadian Institute of Mining, Metallurgy, and Petroleum awarded the team the prestigious John T. Ryan National Safety Award. A significant achievement and well done to the entire team. Moving to Q1, consistent with H1 expectations, the company delivered 61,700 ounces of gold in the first quarter, with higher tonnes mined and processed. Australia.

Firstly I would like to thank all caliber employees and business partners for their continued efforts and focus during what has been a very busy quarter.

Derek: Firstly I want to acknowledge and I'm proud my particular mention of the Valentine thing for their outstanding safety performance, which was recognized on Monday, when the Canadian Institute of mining and petroleum.

Derek: What is it same with prestigious John T Ryan National Safety Award.

Derek: The treatment and well done to the entire time.

Derek: Moving to Q1.

Speaker Change: Consistent with ice one expectations the company delivered 61700 ounces of gold in the first quarter.

Speaker Change: Tons mine and process cost, whereas anticipated 5%.

Speaker Change: Full year expectations. Additionally.

Darren Hall: Additionally, with the team in Nicaragua making good progress in the open pits, we are 20% ahead on total material and equipment, which is a little double-edged as it results in higher Q1 spend, but lower risk production in H2. As we have consistently foreshadowed, gold production is H2 weighted, and I'm confident in reaffirming our four-year guidance. Turning to slide 4, our vision at Calibre has always been to establish a quality mid-tier gold producer by generating strong operating cash flows to fund organic growth while seeking a host of opportunities to diversify and grow.

Speaker Change: Additionally, with the same day, Nicaragua, making good progress in the pit.

Speaker Change: 20% hit on part of apparel.

Speaker Change: There's a little stabilize as it results in higher Q1 spend the risk production.

Speaker Change: Okay.

Speaker Change: As we have consistently for childhood coal production is weighted and I'm confident in reaffirming our full year guidance.

Turning to slide pool opinion of caliber has always been to establish a quality mid tier gold producer by generating strong operating cash flows to fund organic growth, while seeking accretive opportunities to best Pine Brook, we have consistently delivered into this vision remember.

Darren Hall: We have consistently delivered on this vision, never more so than now, with the acquisition of the Ballantyne Gold Mine in Newfoundland and Labrador. With first gold scheduled in Q2 2025, Ballantyne will establish Calibre as a quality mid-tier, and provide a compelling re-rate opportunity for all shareholders. I'm pleased to report the construction of our fully funded Ballantyne Gold Mine is 64% complete, and we have progressed detailed engineering to 98%. Additionally, the thing at, has completed the tailings management facility starter dam, received engineer of record sign-off, and commenced liner placement, which is a significant milestone in the project development. Deliver critical path items, including mills and motors, to newcomers. We recently enclosed the Mill Building and connected the site to permanent hydroelectric power. We've awarded all major outstanding construction contracts.

Speaker Change: They brought more size and now with the acquisition of the balance on goldmine in Newfoundland and Labrador.

Speaker Change: With first gold schedule in Q2, 2027, timeless fabrics caliber as a quality mid tier gold producer in the Americas, providing a compelling rewrite opportunity for all shareholders.

Darren Hall: Employee Experience and a Highly Motivated Operations Leadership Team, and awarded a contract for an advanced pre-commissioning and commissioning activity. These project optimization and de-risking efforts, combined with accelerating operations and a portion of Phase 2 capital expansion, resulted in an initial capital cost of $653 million Canadian dollars. $145 million Canadian increase over Marathon Gold's Q3 2023 update, with $279 million Canadian in initial project capital remaining to be spent and $400 million Canadian in cash and restricted cash. The bill is fully funded. Moving to slide five.

Speaker Change: I'm pleased to report the construction of our fully funded Donlin Gold bar is 64% complete and we are progressing detailed engineering to 98%.

Speaker Change: Additionally, the same pads complete.

Speaker Change: Completed the tailings management facility started then received engineer of record sauna and commenced fall into place.

Speaker Change: Inefficient ball stuck in the project development.

Deliver critical path items, including mills and motors to Newfoundland.

Speaker Change: We recently closed the mill building.

Speaker Change: And connected site to permanent hydroelectric power.

We've awarded or major outstanding construction contracts.

Speaker Change: Employ the experienced and highly motivated operations leadership team.

Speaker Change: And awarded a contract for an advanced pre commissioning and commissioning activities.

Speaker Change: These projects optimize the optimization of Derisking efforts combined with the accelerating operational and a portion of the finest food capital expense.

Speaker Change: Results in our initial capital cost of 653 million Canadian dollars a.

Speaker Change: 145 million good idea increase or the marathon Gold's Q3, 2023 I'm sorry.

Speaker Change: With 279 being Tonight, and initial project capital remaining to be spent and.

Speaker Change: 400 million Canadian and cash from restricted cash.

Speaker Change: The Bill is fully funded.

Speaker Change: Moving to slide five.

Speaker Change: The 145 million Canadian.

Darren Hall: The $145 million Canadian is consistent with our pre-acquisition due diligence, and Incorporated, underestimated costs, inflationary impacts, and capital advance by calibre to de-risk delivery and to support future operations. The increase versus Marathons Q3 2023 estimate primarily consists of three components. Schedule and Cost Estimation of approximately $70 million, which relates to improved quantity, cost, and timeliness, and Engineering, now at 98%, progressed from 60%, which was the basis of the Q3 2023 estimate.

Speaker Change: Assistant without pre acquisition due diligence and incorporate underestimated cost inflationary impacts and capital advisors by telephone to Derisk the delivery.

Speaker Change: And to support future operations.

Speaker Change: The increase versus marathons Q3 2023.

Speaker Change: Primarily.

Speaker Change: Mm three compartments.

Speaker Change: Schedule and cost estimation of approximately 70 million, which relates to improved quality cost and partners.

Speaker Change: With engineering.

Speaker Change: Now, 98% progress from 60%, which was the basis of the Q3 2023 system.

Darren Hall: Secondly, $40 million attributable to Calibre's project optimisation and de-risking efforts, which focus on ensuring that the facility as designed delivers its full potential as we transition from construction to operation. This investment includes pre-commissioning and commissioning planning and activity, mill, and site modification. Access Road Upgrade and, importantly, advancing the deployment of the operation stage. Finally, Calibre is advancing Operational Phase 2 Capital Expansion of 35M, which is more opportunistic in nature and includes investment and infrastructure that will positively impact operations. This includes commencing the construction of permanent mobile equipment maintenance facilities versus Plant Influence. Treatment Plant and Accommodation Upgrade.

Speaker Change: Secondly, $40 million attributable to calibers project optimization, and Derisking efforts, which focused on ensuring that the facility as dissolved and delivers its full potential as we transition from construction to operations.

Speaker Change: This investment includes pre commissioning and commissioning planning and activities mill.

Speaker Change: The mill and slight modifications access road upgrades.

Speaker Change: And importantly, advancing deployment of the operations side.

Yeah.

Speaker Change: Finally, calibers of balancing operational in place too.

Speaker Change: A little expansion.

35.

Speaker Change: Which is more opportunistic in nature and includes investment in infrastructure.

Speaker Change: Positively affect operations.

Speaker Change: This includes commencing construction of permanent mobile equipment maintenance facilities.

Speaker Change: This plant affluent.

Speaker Change: Treatment plant and accommodation upgrades.

Darren Hall: A more strategic component of this investment advances a portion of the price to expansion capital. In the Feasibility Study, Phase 2 is the planned plant expansion in Years 3 and 4, which increases throughput to 4 million tonnes per year. We were in the early stages; we were early in the analysis.

Speaker Change: Most strategic component of this investment as bonds as a portion of the phase two expansion capital is.

Speaker Change: The feasibility study right towards the planned plant expansion in unit, three and four which increases throughput to 4 million tons per year.

Speaker Change: We are in the early we were early in the analysis, but given the current Sag All circuit design, we believe there might be opportunity to increase throughput in advance of a plant expansion a key component to enable any increased throughput would be to ensure the capacity and the CIL circuit and therefore, we have been.

Darren Hall: Given the current SAG ball circuit design, we believe there may be opportunity to increase throughput in advance of a plant expansion. A key component to enable any increased throughput would be to ensure the capacity in the CIL circuit, and therefore, we have included additional tankage as anticipated in the Phase 2 design. We've commenced a scoping study to review process plant expansion options, focusing on Assessing Combination Circuit Alternatives. It's early in the analysis, but I'd encourage.. then there is a combination of secondary crushing and grinding options which may present even higher return options than the Feasibility Study and Visage Phase 2, which is a good segue into exploration as having an appreciation of the potential scope of the district will influence scale when assessing processing expansion opportunities.

Speaker Change: Further additional tankage is anticipated in the phase II design.

Speaker Change: We've commenced a scoping study to review purchased client expansion opportunities.

Speaker Change: In assessing combination circuit it's.

Speaker Change: It's early in the analysis, but on encourage.

Speaker Change: Then the recombination secondary crushing grinding options, which might present, even higher return options when the feasibility study sites.

Speaker Change: Which is a good segue into exploration.

Speaker Change: As you can appreciate some of the potential scope of the district will influence scale when assessing processing expansion opportunities.

Darren Hall: The Valentine Gold Mine and surrounding property offers a robust resource base and discovery opportunities from an extremely prospective array of exploration targets with similar geology to the prolific Dahur and Timmins camps in the Abitibi Gold Belt. I'll now pass this to Tom to provide additional color on Ballantyne's exciting exploration.

Speaker Change: The Valentine goldmine and surrounding property offers a robust resource space and discovery opportunities from an extremely perspective array of exploration targets with similar geology to the Olympics.

In Timmins camps in the Abitibi Gogo.

Speaker Change: Provide additional color on sort of exploration.

Speaker Change: Thanks, Darren turning to slide six.

Tom: Thanks, Aaron. Turning to slide six.

Tom: The 250 km2 Valentine land package offers us a considerable resource base from which to grow. The discovery potential, in our view, is high with an underexplored orogenic setting. The 2024 Exploration Program will include resource expansion and discovery drilling backed by a robust geoscience initiative similar to what we've employed in our other jurisdictions and will focus on high-definition, property-wide geophysics and LiDAR surveys, enhanced prospecting, and a comprehensive till sampling program. Several targets which have never been drilled but are a high priority for Calibre include Eastern Arm, Northwest Contact, Western Peninsula, and Marathon Northeast.

Speaker Change: The 250 kilometer square Valentine land package offers us a considerable resource base from which to grow.

Darren Hall: The discovery potential in our view is high.

Darren Hall: Under explored orogenic hiring.

Darren Hall: The 'twenty 'twenty four exploration program on resource expansion and discovery drilling backed by a robust geoscience initiatives.

Darren Hall: And what we've employed in our other jurisdictions and will focus on high definition property wide geophysics and line our survey.

Darren Hall: Hence prospecting and a comprehensive kill sampling program.

Speaker Change: Several targets, which have never been drilled but are a high priority for caliber include eastern arm northwest contact.

Western Peninsula and marathon northeast.

Tom: In addition to the regional potential, it is important to highlight the recently completed ore control drilling at Leprechaun, which bolsters our confidence in the model performance. The results substantiate the mineral reserve estimate in the first five benches, with drilling indicating an increase in ore tons of 15% and overall gold ounces of 12%. Additionally, high-grade gold mineralization was discovered on the southwest edge of the pit, highlighting strong resource expansion potential given the limited drilling along the Valentine Lake shear zone toward the Frank deposit.

Speaker Change: In addition to the regional potential and it's important to highlight the recently completed or controlled drilling and leprechaun, which bolsters our confidence in model performance. The results substantiate the mineral reserve estimate in the first five benches drilling, indicating an increase in or times of 15% and overall gold ounces at 12%.

Speaker Change: Additionally, high grade gold mineralization was discovered on the south west edge of the pit highlighting strong resource expansion potential given the limited drilling along the Valentine Lake shear zone towards the franc deposit.

Tom: Phase 1 Diamond Drilling has now been completed, and we are scheduled to follow up along the Frank Leprechaun Corridor with a more detailed program in the fall. Overall, early-stage, drill-ready targets backed by surface anomalies that have never been drilled, combined with near-mine expansion potential, demonstrate the robust nature of this mineral system. The Valentine Lake Shear Zone and Northwest Contact Shear Zone combine for up to 64 kilometers of high potential opportunity with over 5 million ounces of gold hosted.

Speaker Change: Phase one diamond drilling has now been completed.

Speaker Change: We are scheduled to follow up along the Frank Leprechaun corridor with more detailed program in the fall.

Speaker Change: Overall early stage drill ready targets backed by surface anomalies, which had never been drilled.

Speaker Change: Mindless near mine expansion potential demonstrate the robust nature of this mineral system.

Speaker Change: Valentine Lake Feargal shear zone, and northwest contact shear zone combine for up to 64 kilometers of high potential opportunity with over 5 million ounces of gold hosted.

Tom: As we quickly increase our knowledge base throughout the field season and with incoming drill hole assays, I would anticipate this could lead to a much larger drill program in the future. With that, I'll turn it back over to Darren.

Speaker Change: As we quickly increased our knowledge base throughout the field season, and we didn't come in and drill hole assays I wouldn't anticipate this could lead to a much larger drill program in the future.

Speaker Change: With that I'll turn it back over to Darren.

Speaker Change: Okay.

Darren Hall: Thanks, Tom. Moving to slide seven, with Construction at 64% and Detailed Engineering at 98%, Calibre is well positioned to responsibly deliver the fully funded Valentine Gold Project. With first call scheduled in Q2 2025, the delivery of Ballantyne presents a paradigm shift for Calibre as we transition to quality mid-tier gold.

Tom: Thanks, Tom moving to slide seven.

Speaker Change: With construction of 64% and detailed engineering Anthony Eisen.

Speaker Change: Caliber is well positioned to responsibly deliver the fully funded peloton Goldman.

Speaker Change: With first oil change or increase in 2025, the deliberately delivery of Ballantyne presents a paradigm shift of calibers, we transitioned to a quality mid tier gold producer.

Speaker Change: It will unlock significant value.

Speaker Change: Nicholas.

Darren Hall: [inaudible] With that, we're happy to take questions, and I'll pass them back to the operator. Thank you very much. Thank you very much.

Speaker Change: With that we're happy to take questions and I'll pass it back to the operator.

Speaker Change: Thank you very much people.

Operator: Thank you very much. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, you may press star, then 2. As a reminder, that's star, then one to ask a question. We will pause momentarily to assemble our roster. Today's first question comes from Ingrid Rico with STFL. Please go ahead.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.

If youre using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: To withdraw your question you May Press Star then two.

Speaker Change: As a reminder, that's star then one to ask a question. Please.

Speaker Change: We will pause momentarily to assemble our roster.

Speaker Change: Today's first question comes from Ingrid Rico with Stifel. Please go ahead.

Ingrid Rico: Hi, good morning, Darren and team. Thank you for taking my question.

Ingrid Rico: Hi, good morning, Darren and team. Thank you for taking my question Oh, probably started with them just start up on the capital you gave us the update on a lot of that major contracts have been awarded so darrin, what's sort of outstanding on the critical path right now what what should we.

Ingrid Rico: I'll probably start with just sort of on capital. You gave us the update on a lot of the major contracts that have been awarded. So Darren, what's sort of outstanding on the critical path right now? What should we be looking for over the next six months?

Ingrid Rico: Looking for over the next six months.

Darren Hall: Yeah, hi Ingrid, good morning and firstly, thanks for initiating coverage there in Q1. It is appreciated and acknowledged, thanks, well done. In terms of outstanding major items today, as you kind of mentioned, we're well-progressed on the engineering. We're three quarters built. The mills, mows, and equipment are on site. In terms of major deliverables, it's probably in relation to the conveyors which come later in the summer. Again, there's plenty of time for those deliveries, so I don't see them as a really critical part. The major contracts in terms of the SMPs, Structural Mechanical and Piping, have been issued. For electrical instrumentation, we've got a letter of intent, and we're in the final stages of issuing that contract.

Speaker Change: Yeah, Hi, good morning.

Speaker Change: Thanks for initiating coverage there in Q1. It is appreciate the knowledge. Thanks.

Speaker Change: Well done.

Darren Hall: Bringing together those groups of people and scheduling that out through the summer to bolt things together is probably a critical part. So it's not so much delivery; it's more about assembling the Mercado set, if you will. And that's what the team is focused on now, is that it's now into truly the execution of bolting things together. The major civil works are done, you know; it's never really derived from a geotechnical perspective.

In terms of outstanding major items.

Bill: But we're well progressed on the generic with three quarters Bill.

Bill: The mill is mothers are on site.

Bill: In terms of major deliverables, who I believe no relation to the come bias, which come to life in the summer.

Speaker Change: But there's plenty of time for those deliveries so I don't see them as really critical path.

Speaker Change: The major contracts in terms of the SMP construction mechanical and partnering with <unk>.

Speaker Change: I'll, let you go on instrumentation is we've got a letter of intent I'm wearing the panel sizes of ensuring that contract.

Speaker Change: Bringing together those groups of people and scheduling that out for the summer to bolt things together is probably critical path.

Speaker Change: Not so much delivery all it's more about assembling the mechanics, if you will.

Speaker Change: And that's where the team are focused on now is is that it's now into truly the execution of bolting things together, the major civil works sedan, which admittedly.

Speaker Change: The risks from a technical perspective.

Speaker Change: Mill building is now and close so now it's really that fine detail about bolting, all the things together and the coordination of a significant number of people who come together during the construction season here in the summer. So I think it's more around execution of those works and it is critical path in terms of deliberate so bits and bobs.

Darren Hall: The mill building is now enclosed, so now it's really that fine detail about bolting all the things together and the coordination of a significant number of people who all come together during the construction season here in the summer. So I think it's more around the execution of those works that is a critical part in terms of delivery of bits and bolts.

Darren Hall: Excellent. And on operation readiness, you've talked about having the leadership team now, but how's the sort of recruitment process going? What are the sort of targets over the next few months?

Speaker Change: Excellent and on the operation readiness, you've talked about them, having now the leadership team, but how's the sort of recruitment proceeds going what.

Speaker Change: What are sort of the targets are over the next.

Speaker Change: Few months to get stopper for operation.

Darren Hall: Thanks, Ingrid. If I cycle back in time to when we closed the transaction, probably one of the concerns I had was assembling the leadership team. We've had excellent take-up over the last three months. Again, we had a good core of people to bolt on with Daniel and Mike at the site. But now, if we think about the 10 most senior people in the operation, all of those positions have currently been filled.

Speaker Change: Yeah. Thanks, Thanks, Ingrid and I guess is that right.

Speaker Change: Yep Yep cycled back in time to when we closed the trends the transaction.

Darren Hall: So if we think of mine managers, mill managers, process managers, construction managers into the operations phase, business managers, health and safety, all of those positions are now filled, and we've done that over the last couple of months, which is unnervingly pleasing given the apparent shortage of labor in Canada. So I think that attracting people into the province has been easier than anticipated, and all of the top ten, or nine of the top ten, are actually, have actually, or are relocating to Grand Falls of Windsor and Central Newfoundland as well, so they'll be living locally and commuting in. So that's a great thing.

Speaker Change: One of the concerns I had was assembling the leadership team and we've had excellent takeout.

Speaker Change: Over the last three months.

Speaker Change: Again, we had a good core people to bolt on with with Daniel the market site.

Speaker Change: But now as we think about the 10, most senior people in the operation all of those physicians are currently been employed so if we think of <unk>.

Speaker Change: Mine managers know manages process manages construction managers into the operations by business manage their health and safety all of those positions now filled and we've done that over the last couple of months, which.

Speaker Change: Is that moving really pleasing given the apparent shortage of labor in Canada. So I think that attracting people into the province has been eases in.

Speaker Change: Anticipated in all of the top 10 nine of the top 10 are actually have actually or are relocating to grapple with Windsor in central Newfoundland as well, so that'll be living local and competing in so that's a great thing. We know we've got a significant resource base in Newfoundland hi from in terms of operators the mill.

Darren Hall: We know we've got a significant resource base in Newfoundland to hire from in terms of operators and millwrights and mechanics and those sort of things, so hiring into that space, yeah, there is a dearth of talent there, and there's obviously a significant number of people who work turnarounds who are wanting to come back. So I think the challenge we'll probably have from a labor perspective is some disappointment that we won't be able to provide everyone with the job who wants it.

Speaker Change: Right, some mechanics, and those sort of things. So there are a handful that space.

Speaker Change: Yes.

Speaker Change: And there's obviously a significant number of people who work turnarounds.

One thing to come back so I think the challenge will probably have a life of perspective.

Speaker Change: It's a disappointment that we wont be able to provide everyone with the geography once the building.

Darren Hall: So I'm feeling very confident in that space. I'll be back on site here in another week, for a couple of weeks as we kind of assemble the team and do a little bit of Calibre 101, bring them all together, and make sure they've got what they need to be able to deliver on the expectations here in Q1. But we've seen great pick-ups with the project team, and I think it's important to have a group like RCC come in as well and a pre-commissioning commission to ensure that those two groups come together is a critical component as well.

Speaker Change: Feeling actually very confident in that space.

Speaker Change: I'll be back on slide theater in another week or a couple of weeks as we kind of have assembled with St.

Speaker Change: I feel a little bit of caliber I want I want to bring them altogether and.

Speaker Change: And make sure that what they need to balance delivering food.

Speaker Change: The expectations here in Q1, but we're seeing great pick up with the perfect thing I don't think importantly, having.

Speaker Change: A group like ours, so you come in as well on a pre commissioning and commissioning to ensure that the two groups coming together is a critical component as well so a long winded answer to a pretty cool Christian everywhere, but.

Darren Hall: So a long-winded answer to a pretty short question there, Ingrid, but I'm very pleased with the progress we've made on hiring. I'm very pleased with the quality of people we've got and also very motivated by the fact that we are relocating to Newfoundland and taking up the opportunity to live in a great place. So yeah, feeling more and more comfortable every day that goes forward.

Speaker Change: I'm very pleased.

Speaker Change: Pleased with progress we've made on an orange.

Speaker Change: Pleased with the quality of people, we've caught and.

Speaker Change: And also very motivated and the fact that the relocation.

Speaker Change: London, taking up the opportunity to live in a great place. So yeah, feeling more comfortable everyday that goes forward.

Ingrid Rico: And that's great to hear, and thank you for all that sort of update. If I may ask just one last question on mining. I wanted to ask about Barrie. I understand that the federal permit is still outstanding. Can you sort of tell us a little bit about what's the latest on that and when are you expecting to receive it? And I guess, based on your sort of free baseline schedule, when do you need to start mining Barrie? Okay.

Speaker Change: That's that's great to hear and thank you for all that sort of update if I may ask just one last question on.

Speaker Change: On mining I wanted to ask on Barry I understand that the federal permit still outstanding.

Speaker Change: Can you sort of tell us a little bit off what's the latest on that and when are you expecting to receive it and I guess based on your sort of re baseline schedule. When do you need to start mining Barry.

Darren Hall: Okay, yeah, no, good questions. Barry, the original intent, I think, was that Barry was going to start mining either late this year or very early in 2025. We're confident in the permitting process. It's been through the provincial EA review, and they've got early release from memory. I think that was in October of 2023. It then came across to the federal piece. The federal group, which again, I'll see if I can get the acronym correct. I think it's IAAC, which is the Impact Assessment Agency of Canada.

Speaker Change: Okay, yes, good questions.

Speaker Change: Barry.

Speaker Change: The original intent was that Barry was it was going to stop morning, either late this year or very early in 2025.

Speaker Change: We're confident in the permitting process.

In Spain through their provincial.

Speaker Change: <unk> reviewed and.

Speaker Change: Early release up from memory I think that was in October of 2023.

Speaker Change: It came across to the federal police.

Speaker Change: The Federal group, which again I'll see if I can get the acronym correct I think it's I I see which is impact assessment agency of Canada.

Darren Hall: They completed their public comment period here at the end of March, which is a very good sign as well because it kind of foreshadows their intention to approve. So no, I think it's all kind of going as planned. I mean we haven't seen any significant public comment from external parties as part of the federal review. I think the federal government is working through some issues with respect to the process because I believe there was a comment made by the Supreme Court that they thought the process was overreaching, which is great. I mean, I'd rather be overreached by a regulator and make sure that we're doing the right things to ensure that our stakeholders are protected, but I don't anticipate that to materially slow down the approval process. So, and this relates to all It's not just us.

Speaker Change: They completed the public comment period heater in end of March which was a very good sign as well because it is kind of.

Speaker Change: Foreshadowed as their intention to approve.

Speaker Change: So no I think it's all kind of going as planned I mean, we haven't seen any significant public comment permits external parties as part of the Federal review.

Speaker Change: The federal government are working through some issues with respect to process because I believe there was a.

Speaker Change: Made by the Supreme Court, because I thought the process was reached.

Speaker Change: Reaching.

Speaker Change: Right.

Speaker Change: Which as you know, which is which is great I mean, I'd, rather be overreached by regulatory and make sure that we're doing the right things to ensure that all stakeholders are protected but.

Speaker Change: I anticipate that to materially slow down the approval quote says so and this relates to projects in Canada, but it's not just us but.

Darren Hall: So no, I'm still confident in it, but now to say, well, you know, there's always risk. And, you know, we tend to be a little conservative in the approach, which is probably not a bad way to be. So when we did the rebaselining, and as we've continued discussions with our senior debt folks as well, I said, look, let's just take it out of the discussion context, and we'll push Barry out from commencement until early Q3 of 2025.

Speaker Change: I'm still confident in but.

Speaker Change: Now to say well, there's always risk and kind of work.

We tend to be a little conservative in the approach, which is probably not a bad way to be so when we did the revised slotting and as with the case we've.

We've continued discussions with our senior debt parks as well is is that it didn't look let's just take it out of the discussion context, and we will push very out from a commercial.

Smith until early Q3 of 2025.

Darren Hall: And then it's an opportunity to drag it forward if we see the opportunity and, you know, produce a little bit more metal a little earlier, which is never a bad thing. So, yeah, I'm not concerned about it, but it absolutely is a focus to ensure that we deliver on expectations, but we've de-risked the schedule by taking it out of contention. So that way, it's a positive thing when it comes back in.

Speaker Change: And then there's been opportunities for Greg It forward, if we see the opportunity.

Speaker Change: Produce a little bit more medals in Wailea, which is never a bad thing so yeah all of them.

Speaker Change: Not concerned about it but it absolutely is the focus to ensure that.

Speaker Change: We are delivering to expectations, but we've derisked the schedule, what taking it out of contention so that way, it's a positive when it comes back as opposed to pushing it out.

Darren Hall: Great. Thank you, Darren. Sorry, just actually just as a layer on that, as I think how loud as being a kind of a more technical person as well, Ingrid, is that, you know, we think about the 2025 production schedule, and you know berry was one component of the three and you know basically pushing the production producing berry out de-risks that production profile but you know with leprechaun and marathon producing as planned yeah that's significantly I won't say de-risks but delivers into the expectations and from memory and again it's been a while since I've cut you know little shapes out of big shapes in mine site but I think we're looking at probably two to two and a half million tons of inventory in stockpile at the end of 2025 so you know given those sorts of things you're likely to see on startup we've got a more than adequate capacity to offset any of those dips and bobs that come up. Well, I appreciate that. Thank you, Ryan, for passing along that question. I was looking for some of that sort of color last night. Thank you.

Speaker Change: Great. Thank you.

Speaker Change: Just actually just a layer on that is I think that lasts.

Speaker Change: Being a kind of a more technical person as well and where it is is that we think about the 2025 production schedule.

Speaker Change: And you know Barry was one component of the three and basically pushing the production producing Barry out de risks our production protocol, but with liberal in the marathon producing as planned.

Speaker Change: Significantly.

Speaker Change: It's a derisked, but delivers into the expectations then for memory and again, it's been awhile since a cut.

Speaker Change: Little shakes out a bit shapes in mind, but.

Speaker Change: I think we're looking at probably two to two and a half million tons of inventory in stock call at the end of 2025, so given those sorts of things you're likely to see on startup we've got more than adequate capacity to offset any of those get some bumps that come up.

Speaker Change: Well I appreciate that thank you Ryan for passing along that question I was looking for some of that kind of color last night. Thank you.

Operator: I appreciate it. Thanks, Ingrid. I appreciate your support.

Speaker Change: You bet appreciate it thanks, Congrats I appreciate your support.

Speaker Change: Yeah.

Don Demarco: Thank you. The next question is from Don DeMarco with National Bank Financial. Please go ahead.

Speaker Change: Thank you. The next question is from Don Demarco with National Bank Financial. Please go ahead.

Don Demarco: Thank you, Operator. And yeah, good morning, Darren and team. Congratulations on all the de-risking with this Valentine's Update.

Don Demarco: Thank you operator, and good morning, Gary and team congratulations on all the Derisking with their Valentine update.

Don Demarco: So first question D.

Speaker Change: By increasing the throughput to 3 million tons per year.

Don Demarco: And I get it that there's probably still has to be subject to its own derisking, improving but how would you expect that to change the production profile versus the feasibility study in the first few years.

Don Demarco: Yeah, Don, three million tons. That sounds like a good number. You know, again, that's part of what we're working through right now, right? The design work that was done initially with SagVault is very, very solid. It's a good quality product, good work. You know, as we go through some of the..., looking at the analysis for that grinding-crushing optimisation in 2025, I think there will be potential to exceed what would be that 2.5 million tons.

Speaker Change: Yeah, <unk> done 3 million tonnes that sounds like a good number.

Speaker Change: Again, that's part of what we're working through right now.

Speaker Change: It is this.

Speaker Change: The design work that was done initially with the Sag ball.

Speaker Change: Very very solid it's good quality product good work.

Speaker Change: You know as we go through some of the.

Speaker Change: Looking at the analysis for that grinding grinding and crushing optimization in 2025.

Speaker Change: There will be potential to exceed what would be that two and a half million ton when that happens.

Don Demarco: When that happens, I can't necessarily say categorically right now, but I think there is good potential. And that's part of the reason why we advance. The next step is to look at the Phase 2 expansion and what that really looks like. I think that as envisaged, it's solid and it's good, but I think that given the configuration of the crushing and the grinding circuit, there's going to be options to look at. Maybe it's a secondary stage crusher and tertiary stage milling, or maybe it's a secondary stage milling and a tertiary stage

Speaker Change: Scott necessarily say categorically right now because I think there is good potential.

Speaker Change: And that's part of the reason why we advanced.

Speaker Change: Phase two capital into this construction build salt required to but adding that 30% increase in tankage positions us well to be able to realize any potential that comes from increased throughput.

Speaker Change: So yeah, no we'll work it through as we get closer and I think that you know an important part of what we're looking at now is it is fresh set of eyes. If you will looking at that.

Speaker Change: The phase two expansion and what that really looks like I think that as envisaged to solve and it's good.

Speaker Change: But I think that given the configuration of the crushing and grinding circuit theres going to be options to look at that maybe it's a secondary stage crusher.

Speaker Change: In tertiary strides milling or maybe it's a pebble.

Pedro: Pedro Crusher after the fact.

Elliot: And increased combination capacity and pushed those tons as well Elliot So we'll work it through and as we have a high degree of confidence we'll start to talk more openly about it but yes.

Right now I'm pretty confident in.

Elliot: And what we see in anything we do total obviously improved.

The positioning of Ballantyne as we transition into production here in 2020.

Don Demarco: Okay, well, good to see that upside there, and we'll look for more color as you get closer to that. So you got the contract with RCC for commissioning and pre-commissioning, and commissioning. Can you tell us a little bit about this, I mean, maybe the scope of work or your experience working with these guys or some of the others, the work they've done in the past, and so on?

Speaker Change: Okay, Okay, well good to see that upside there.

Speaker Change: And we'll look for more color as you get closer to that so you got the contract with RCC for commissioning and pre commissioning and commissioning can you tell us a little bit about this I mean, maybe the scope of work or your experience working with these guys. There's somebody out there the work they've done in the past and so on.

Darren Hall: Yeah, absolutely. It's not typical for companies our size, or for projects this size, to have a group like RCC involved. They're a quality outfit. We've got Tim McKay, and he's assembling a team, or assembling a team of other supporters. And the real focus here is to bridge what is the project's team, who are focused on scope, schedule, and budget, on getting to the delivery room. And then we've got an operations team who want to pick the child up once it's delivered and raise it to be a responsible adult.

Speaker Change: Yes, absolutely.

Speaker Change: It's not super cool of companies our size of projects that they saw.

Speaker Change: So I have a group like ours involved.

Speaker Change: Yes, there are quality outfit, we've got Tim Mackay and he is assembling a team we're assembling things about will support us and the real focus here is to bridge what is the projects Saint Louis.

Speaker Change: On scope schedule and budget.

Speaker Change: Getting to the delivery room, and then we've got an operations team they want to pick the shows that once it's delivered and raise it into a responsible adult yes. This group of people are really ensuring that that transition on Android that happens well and operators are graded operating plant putting in price the processes by which you're going to operate.

Darren Hall: Yet this group of people is really ensuring that that transition and handover happens well. Operators are great at operating plants, but putting in place the processes by which you're going to operate to ensure that you can realize the full potential of the asset is not always a strong point, particularly as they're hiring teams of people. So really, as I see it, that's what the focus of this group is, to help us.

Speaker Change: To ensure the unrealized potentially that's it is not always a strong point, particularly as they're hiring teams of people. So really as I see it that's what the focus of this group is to help us and it's a it's a material cost. So I mean, we're talking the pre commissioning and commissioning activities are in the order all are in Canadian dollars probably around 9%.

Darren Hall: And it's a material cost. I mean, the pre-commissioning, commissioning activities are in the order of, in Canadian dollars, probably around $9 to $10 million. I mean, it's a significant commitment we're making, but it's significantly de-risked the medium, longer term.

Speaker Change: $10 million I mean, it's a significant commitment were making.

Speaker Change: Significantly de risks the medium longer term.

Speaker Change: The last exposure I had with this group of people was actually at Boddington.

Darren Hall: The last exposure I had with this group of people was actually at Boddington. They did the pre-commissioning commission works at Boddington in Australia when we delivered that asset. So, yeah, it's a very experienced group of people. This is what they do for a living. They're not engineers. They don't do... They're not veins and do process optimization and those sort of things.

Speaker Change: The pre commissioning commissioning works at Boddington in Australia, when we deliver that that asset.

Speaker Change: Yeah.

Speaker Change: This is a very experienced group of people. This is what they do for a living that not engineers that down too.

Speaker Change: They're not buying and due process optimization of those sort of things, it's not that sort of group all baidu.

Darren Hall: It's not that sort of group. All they do is this. This is their bread and butter.

Darren Hall: So, a good group of people. Great to have them on board. And, you know, we've got a great project team to deliver the asset. We've got a great operations team to be able to run the asset. And I think that adding this third leg to the stool will make for a very stable chair.

Speaker Change: Is their bread and butter.

Speaker Change: Yes, good group of people great to have him on board and we've.

Speaker Change: We've got a great project team to deliver the asset we've got a great operations team, It's Obama Romney asset and I think that adding this third leg to the stool makes for a very stable chair.

Don Demarco: Okay, it's good to see there's that de-risking there then, and maybe just a final question. There's this discovery along the southwest edge of the Leprechaun Pit, you know, we've seen some press releases, some intercepts are looking encouraging, but does this have potential to be mined early in the mine life if it continues to be proven out and it's converted to reserves and so on?

Speaker Change: Okay.

Speaker Change: It's good to see there's that Derisking. There then and maybe just a final question.

Discovery, along the southwest section Electrocom pet.

Speaker Change: We've seen some press released some intercepts are looking encouraging but does this have potential to be mined early in the mine life.

It continues to be proven out and it's converted to reserves and so on.

Darren Hall: Well, I think there's a couple of parts to this, and I'll maybe throw it over to Tom if there's anything I've missed, but, you know, some of what was identified in that Valentine's Day release is that it will be mined as a consequence of, because it's inside of the pit. It wasn't actually identified as, well, two parts: some of it was identified as inferred, which we So that waste now becomes ore, so we don't actually process the measured indicator in 2P; we process whatever ore presents itself from the ground, so that means that will end up as available grist for the mill, as it were.

Speaker Change: Well I think there's a couple of parts to this and all I might be throw it over to Tom if there's anything I missed but.

Speaker Change: Some of what was identified in that.

Speaker Change: Valentine's day release is as that will be mined as a consequent salt because it's either side of the pit it wasn't actually identified.

Tom: Well two parts some of it was identified as in food, which we've improved the carpet installation, indicating category. Some of it was never identified so it was it's considered as waste so that whites now becomes ore. So we don't actually process measured indicated and two P. Reprocessed whatever presents out of the ground. So that means that will end up being as a vie.

Speaker Change: Grist for the mill as it was but as it kind of bleeds off base. So to the southwest towards spring I think Tom in the exploration guys are very encouraged by what I see in terms of the ability to expand into.

Darren Hall: But as it bleeds off there to the south west towards Frank, I think that Tom and the exploration guys are very encouraged by what they see in terms of the ability to expand. Tom, is there anything you'd like in there? Because actually, Tom's not in the room here. He's actually in Nicaragua this week.

Speaker Change: Tom is there anything you'd layer in this because actually it sounds like in the room here he's actually.

Speaker Change: In Nicaragua this week so.

Tom: Yeah, no, I think you covered it. I mean, it's important to understand that, you know, we will have ounces of gold sort of, you know, by default come into the mine plan because they were not captured previously. And so they'll, you know, do things like lower the strip ratio in places or just add bonus ounces. And that's part of why we saw that increase in tonnage and, subsequently, overall ounces in that grade control because the tonnage actually comes from things that were not categorized. To the southwest, you know, once you get outside the bounds of the pit.

Speaker Change: Yeah, I know I think I think you covered it I mean I think it is important to understand that you know we will have the ounces I'm sure you know.

Speaker Change: By default come into the mine plan because they were not captured previously and so do you know do you.

Speaker Change: Things like lower strip ratio in places, where just add bonus ounces and that's part of why we saw that increase in tonnage.

Speaker Change: And subsequently over allowances or not and that grade control because.

Speaker Change: Actually comes from things that weren't on categorize kind of southwest you know once you get outside the bounds of the pit.

Speaker Change: You know theres still considerable work needs to be done from a drilling perspective definitely encourage with what we've what we've seen visually don't have all the assays and to speak about yet from our from our first phase of Diamond drilling that we just completed.

Speaker Change: In Q1.

Tom: [inaudible] please contact us at www.calibremining.com It's very consistent, Don, from what we've known to be the, let's call it marathon style, QTP, quartz germling pyrite in the tarantulamite mineralization, right? And I've followed this story as an analyst back since 2017. So it's very consistent with what we've been familiar with.

But of course this is a very visual ore body. So we can see you know what.

Speaker Change: Organization should be we do have indications on surface as well of that same mineralization continuing.

Speaker Change: Fairly fairly regularly.

Speaker Change: Regularly down to Frank where are we where we didn't have drunk. So again, there's some follow up work to do there but.

Speaker Change: It's very consistent dawn from from what it has been you know, what we've known and Oh it.

Mike: It could be the let's call. It marathon style Q T P quartz tourmaline pyrite in neutron here Mike mineralization.

Speaker Change: Nation, right and I, followed this story as an analyst factions 2017. So it's it's very consistent from Hmm away of what we've been familiar with.

Don Demarco: Okay, well, thanks for that, Tom and Darren, and that's all from me; good luck with the rest of the build.

Speaker Change: Okay, well, thanks, Thanks for that Tom and Darren and that's all for me good luck with the rest of the building.

Darren Hall: Thanks. I appreciate your support and coverage.

Speaker Change: Okay. Thanks, Don appreciate your support and coverage.

Speaker Change: Thank you very much. This concludes our question and answer session I would now like to turn the call back over to President and CEO Darren Hall for closing remarks.

Operator: This concludes our question and answer session. I would now like to turn the call back over to President and CEO, Darren Hall, for closing remarks.

Darren Hall: Thanks, MJ. I'd like to thank all of our shareholders for their continued support and, in particular, your participation and questions this morning. It is appreciated. Thank you for taking the time; I know it's a busy time of the year for everyone. As always, Ryan, I, and the leadership team are available if you have any further questions. Take care, have a safe and enjoyable day, and back to you, MJ. Thank you very much. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect and have a nice day.

Operator: [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ??

Sanjay: Thanks Sanjay.

Speaker Change: I would like to thank all of our shareholders for their continued support.

Darren Hall: And in particular your participation in questions. This morning. It is appreciate it. Thank you for taking the time and now it's a busy time of the year for everyone.

Darren Hall: As always Ron on the leadership team are available if you have any further questions take care have a.

Speaker Change: Safe and enjoyable day and back to you Amjad.

Amjad: Thank you very much the conference has now concluded.

Speaker Change: You for attending today's presentation, you may now disconnect and have a nice day.

Speaker Change: [music].