Q4 2024 Calibre Mining Corp Earnings Call
Yeah.
Operator: Good day and welcome to the Calibre Mining Corp 2024 Q4 and full year conference.
Speaker Change: Good day and welcome to the caliber mining Corp, Twenty-twenty for Q4 and full year conference call.
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Ryan King: Now I'd like to turn the conference over to your host today, Ryan King. Sir, please go ahead.
Ryan King: Thank you, operator. Good morning, everyone, and thank you for taking the time to join the call this morning.
Speaker Change: Thank you operator.
Speaker Change: Everyone and thank you for taking the time to join our call. This morning.
Ryan King: Before we commence, 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.
Speaker Change: Before we commence I'd like to direct everyone that forward looking statements on slide two.
Speaker Change: Our remarks and answers to your questions today may contain forward looking information about the company's future performance.
Speaker Change: 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.
Ryan 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, please refer to the previous quarter's MD&A and consolidated financial statements available on our website, as well as on CDAR Plus.
Speaker Change: 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.
Speaker Change: Please refer to the previous quarters M DNA and consolidated financial statements available on our website as well as on SEDAR plus.
Ryan King: And finally, all figures are in U.S. dollars unless otherwise stated.
Speaker Change: And finally, all figures are in U S dollars unless otherwise stated.
Ryan King: Present today with me on the call are Darren Hall, President and Chief Executive Officer, David Schumer, SVP and Chief Operating Officer, Daniella Dimitrov, SVP and Chief Financial Officer, and Tom Gallo, Senior Vice President, Growth. We will be providing comments on our fourth quarter and full year 2024 production and cost results and an update on the Valentine gold mine, after which we'll be happy to take questions. The slide deck we will be referencing is available on our website at calibremining.com, under the events section. You can also click on the webcast to join the live presentation.
Speaker Change: Present today with me on the call are Darren Hall, President and Chief Executive Officer, David Schumer, SVP and Chief operating Officer.
Daniela Dimitrov S E T.
Tom Gallo: And Chief Financial Officer, and Tom Gallo Senior Vice President gross.
Tom Gallo: We will be providing comments on our fourth quarter and full year 2020 for production and cost results and an update on the Valentine goldmine, after which we'll be happy to take questions.
Tom Gallo: A slide deck, we will be referencing is available on our website at caliber mining dot com under the events section.
Tom Gallo: You can also click on the webcast who joined the live presentation.
Darren Hall: And with that, I'll turn the call over to Darren. Thanks, Ryan. Moving to slide three.
Derek: And with that I'll turn the call over to Derek.
Derek: Thanks, Brian I'm moving to slide three.
Darren Hall: Good morning and thank you for taking the time to join us this morning. Firstly, I would like to thank our employees and business partners for their continued commitment to safe and responsible operations. This commitment is demonstrated not only by a 20% reduction in our lost time injury frequency rate year over year, but delivering record production of 76,000 ounces in Q4 and 242,000 ounces for the full year, exceeding the upper end of our production guidance. This strong operating performance has continued into 2025 with consolidated production 15% of budget and cash increase 23% to $161 million as of mid-February.
Speaker Change: Good morning, and thank you for taking the time to join US This morning.
Speaker Change: Firstly I would like to thank our employees and business partners for their continued commitment to safe and responsible operations. This commitment as demonstrated not only by a 20% reduction.
Speaker Change: And our lost time injury frequency rate year over year, but delivering record production of 70 76000 ounces since before and 242000 ounces for the full year exceeding the upper end of our production guidance.
Speaker Change: This strong operating performance has continued into 2025 with consolidated production, 15% of budget and cash increased 23% to $161 million as of mid February.
Darren Hall: Additionally, Dave Schumer and the Nicaraguan team continue to identify operational efficiencies to drive further improvements in Nicaragua. The Valentine Feasibility Study forecasted an average 195,000 ounces per year for the first 12 years. With a build on budget and first gold expected in Q2, I anticipate 2025 production to be between 50,000 to 100,000 ounces. This would be in addition to our pre-Valentine production guidance of 230 to 280,000 ounces. In addition to delivering Atlantic Canada's largest gold mine, 2025 will be a noteworthy year for exploration, with a 200,000 metre company-wide drilling program, the largest in Calibre's history.
Speaker Change: Additionally, dive schumer and the Nicaraguan team continue to identify operational efficiencies to drive further improvements in Nicaragua.
Speaker Change: The Valentine feasibility study forecast at an average of 195000 ounces per year for the first 12 years with a build on budget and first oil expected in Q2, our anticipated 2025 production to be between 50 to 100000 ounces. This would be in addition to our pre balanced volume production.
Speaker Change: Guidance of 230 to 290000 ounces.
Speaker Change: In addition to delivering Atlantic Canada's largest gold mine 2025 will be a noteworthy year for exploration with a 200000 meter company wide drilling program the largest in Calaboose history.
Darren Hall: In particular, the exciting discovery drilling at Ballantyne's Frank Zone and El Limon's Vitem Gold Corridor have the potential to meaningfully increase our mineral resources.
Speaker Change: In particular, the exciting discovery drilling a Valentine's, Frank Sun and element Z time gold corridor, having the potential to meaningfully increase our mineral resources.
Darren Hall: Moving to slide four and Valentine. During 2024, we attracted a very capable operating team at Ballantyne, which has considerable commissioning experience, who are working with Reliable Controls Corporation to oversee pre-commissioning and commissioning to ensure a seamless transition from construction to operation. Valentine Construction is on track with notable progress including the primary crusher is ahead of schedule and ready for commissioning. Mill motors to be set within the week and substantively complete by month end. Structural steel installation is at 91%. CIL tank piping on target for completion early March. Cable installation is set for completion in March.
Speaker Change: Moving to slide four and Valentine.
Speaker Change: During 2024, we attracted a very capable operating team have got a long time, which is considerable commissioning experience who are working with reliable controls corporation to obviously pre commissioning commissioning to ensure a seamless transition from construction to operations.
Speaker Change: Ballantyne construction is on track with notable progress, including the primary Crusher is ahead of schedule and I'm ready for commissioning mill margins to be set within the week and substantially complete by month end.
Speaker Change: Structural steel installation is at 91%.
Speaker Change: CIL tanks piping on target for completion early March cable installation is set for completion in March.
Darren Hall: Reclaimed Tunnel Steel and Apron Feeders are progressing and on track for commissioning in April. and finally the ADR plant and gravity circuit are nearing mechanical completion and ready for turnover. We have made substantial progress on technical studies to increase Valentine's throughput in a phase two expansion. While the feasibility envisaged an increase in throughput from 2.5 million tonnes per year to 4 million tonnes per year starting in 2029, we are now actively advancing plans to accelerate the timeline for scaling up production to in excess of 5 million tonnes per year. We have commenced program management activities and are on track to award detailed engineering in March with the intent of committing to long lead times before year end.
Speaker Change: Reclaim tunnel.
Speaker Change: Steel and apron feeders are progressing and on track for commissioning in April.
Speaker Change: Finally, the ADR plant, probably circa the nearing mechanical completion I'm ready for turnover.
Speaker Change: We have made substantial substantial progress on technical studies to increase Valentine's throughput.
Speaker Change: I used to expansion, while the feasibility in busy steady increase in throughput from two 5 million tons per year to 4 million tonnes per year starting in 2029.
Speaker Change: We're actively advancing plans to accelerate the timeline for scaling our production to an excess of 5 million tons per year.
Speaker Change: Commenced program management activities are on track to award detailed engineering in March with the intent of committing to long lead times before year end.
Darren Hall: Given the strong exploration upside of Ballantyne, our approach positions us well for long-term growth and value creation.
Speaker Change: Given the strong exploration upside of Ballantyne, our approach positions us well for long term growth and value creation.
Darren Hall: Turning to slide five. Ballantyne offers an impressive five million ounce resource base from which to grow both near mine and the numerous exploration opportunities which exist across the property. Oil control drilling is confirmed grade and added 29% more tonnes at the Leprechaun Pit, resulting in a 30% increase in gold compared to the 2022 mineral reserve. Importantly, the grade distribution indicates that applying a higher cut-off will result in the potential to process higher grades material for longer. Similarly, all-control drilling at the Marathon Pit yielded 47% higher gold grades, resulting in 44% additional ounces over the 2022 mineral reserve for the same tonnage.
Speaker Change: Turning to slide five.
Speaker Change: Peloton offers an impressive 5 million ounce resource base from which to grow with both near mine and the numerous exploration opportunities which exist across the property.
Speaker Change: Well controlled drilling has confirmed bright and added 20, 29% more tons of deliberate cone pit, resulting in a 30% increase in gold compared to the 2022 mineral reserve.
Speaker Change: Importantly, the great distribution indicates it applying a higher cutoff will result in the potential to progress process higher grade material for longer.
Speaker Change: Similarly, all control drilling at the marathon pit yield of 40%, 47% higher gold grades, resulting in 44% additional ounces over the 2022 mineral reserve for the same tonnage.
Darren Hall: Discovery drilling at the Frank Zone, located one kilometre southwest of reported mineral resources, continues to return significant broad intervals of gold mineralisation. Importantly, recent drilling has now traced mineralisation to surface, highlighting the potential for another open pit. Initial drill intercepts include 172m grading 2.4g, 2.12g over 95m, 2.26g over 78m and 3.08g over 48m. These new intercepts geologically align with or from the Marathon, Berry and Leprechaun open pits. While exploration of the Frank Zone is still in its early stages, current data indicates that the zone remains open to the southwest and to the north, and now has been traced for over a thousand metres along the strike into a depth of approximately 500 metres.
Speaker Change: Discovery drilling at the Frank Sun looks like kind of one kilometers southwest of reported mineral resources continues to return significant brought intervals of gold mineralization.
Speaker Change: Importantly, recent drilling has now trace mineralization to surface part along with the potential for another open pit.
Speaker Change: Initial drill intercepts include 172 latest grading two four grams to two or 2.12 grams or the 95 meters to two six grams over 78 meters and 3.08 grams, the 48 meters at.
Speaker Change: These new intercepts geologically align with ore from the marathon, Barry electrical and often pigs, well exploration of the Frankfurt is still in its early stages current data indicates that design remains open to the southwest and to the North and now has been traced Barbara.
Speaker Change: Meters, along strike and to a depth of approximately 500 meters.
Darren Hall: Historically, drilling at Ballantyne is mainly focused on a small portion of the 32 kilometre Ballantyne Lake Share Zone. This structure remains highly prospective for discovering additional gold resources and represents only a small fraction of the broader 250 square kilometre landmass.
Speaker Change: Historically drilling at Bell and PON is mainly focused on a small portion of the 32 kilometer Valentine Lake shoes on this structure remaining highly prospective discovery of additional resources represents only a small fraction of the broader 250 square kilometer land package.
Darren Hall: Moving to slide six. With record gold prices, consistent operating performance, exciting exploration results and balance on untracked to deliver first gold in Q2, which will diversify our production profile and unlock peer-leading production growth, I am confident that we will continue delivering superior value and provide a compelling re-rate opportunity for all shareholders.
Moving to slide six.
Speaker Change: Sprinkled gold prices consistent operating performance exciting exploration results and balance on track to deliver first gold in Q2, which will diversify our production profile and unlock peer leading production growth, but I'm confident that we will continue delivering superior value and provide a compelling rewrite opportunity for all shareholders.
Darren Hall: With that, we're happy to take questions. I'll now pass it back to the operator.
Speaker Change: With that we're happy to take questions I will now pass it back to the operator.
Operator: Yes, thank you.
Speaker Change: Yes. Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
Operator: We will now begin the question and answer session. To ask a question, you press star and 1 on your telephone keypad.
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Francisco Custanzo: At this time, we will pause momentarily to assemble And the first question comes from Francisco Custanzo with a Scotiabank. Hi there, this is Francesco calling on behalf of Obese Habib. Morning, Darren and team. Just want to start by saying congrats on the earnings beat this quarter. Maybe I'll start with the Valentine Project. Darren, could you just reiterate briefly that sort of production that would look you gave for for Valentine for this year?
Speaker Change: At this time, we will pause momentarily to assemble the roster.
Speaker Change: And the first question comes from Fresnillo Costanzo with Scotiabank.
Brent Johnson: Hi, there this is Brent Johnson, calling on behalf of obese Habib good morning, Darren and team.
Speaker Change: Want to start by saying congrats on the earnings beat this quarter.
Speaker Change: Maybe I'll start with the downtime project Darren could you just reiterate briefly that's sort of production that was lucky gauge for us or downtime for this year.
Darren Hall: Yeah, Francesco, thanks for joining the call this morning and your continued support. Yeah, if we look at valentine in the feasibility study, it had been foreshadowed for 195,000 ounces a year for the first 12 years of production. Given where we're looking to first gold in Q2, and we think of it as a ramp up year, it's reasonable to expect that 50,000 to 100,000 ounces of production in 2025 is a reasonable place to start to create expectations around. For sure.
Darren Hall: Yeah Francisco well, thanks for joining the call. This morning, and your continued support yeah. If we look at Ballantyne into feasibility study had been foreshadowed for 195000 ounces a year for the first 12 years of production now given where our we're looking to first gold in Q2, and we think that there is a ramp up year.
Darren Hall: Reasonable to expect that a 50 to 100000 ounces of production in 2025 is a is a reasonable place to start to create expectations around.
Darren Hall: For sure and so given our production outlook when when do you think that implies that you'd be reaching commercial production and then nameplate capacity at the mine.
Darren Hall: And so given that production outlook, when when do you think that implies that you'd be reaching commercial production and then named plate capacity at the mine? Yeah, and I kind of stay away from terms like nameplate and commercial production, because I find them as they're cool, neat things that people refer to. But what our focus is this year is safely delivering the asset and then ramping up production to be at an annualized rate of around two and a half million tonne by the end of the year. And if we want to call that nameplate, let's call it nameplate at 2.5 million tonnes.
Darren Hall: Yeah, and I kind of stay away from terms like nine plays in commercial production because I find them is that they are cool night things that people referred to but you know what I'll call. Because there's this year is is safely delivering the asset and then ramping up production to be at an annualized rate of around two and a half million tons by the end of the.
Darren Hall: Yeah.
Darren Hall: And if we want to call that nameplate, let's call. It a nameplate of $2 5 million tons, but I think as we've discussed before the.
Darren Hall: But I think as we've discussed before, the rate determining step in the current design is milling capacity. And the milling capacity, given the power studies we've done, has an implicit through rate of about three million tonnes a year. So, you know, again, at 2.5 million tonne, we still see opportunity for growth beyond that. But we're targeting to be at 2.5 million tonnes by the end of the year. Yeah, that's great. I think that's helpful.
Darren Hall: The rate determining step in the current design is milling capacity and the milling capacity given the Pallas studies. We've done has a implicit through rate of about 3 million tons. A year. So you know again at $2 5 million ton, we still see opportunity for growth beyond that but we're targeting to be at two point cognizant tons by the end of the year.
Darren Hall: Yeah, that's great I think that's helpful. Maybe.
Darren Hall: Maybe just on the planned mill expansion. So given that you're progressing detailed engineering for, you know, an expansion over the prior feasibility studies expansion, when do you think you would be looking to release a new technical report that could outline the costs and timeline associated with that? No, and we've we've commenced the work this year to do the detailed engineering to get us to a more definitive estimate in terms of timelines and costs for that. You know, I think we'll be in a position around that July timeframe to make commitments into the next stage of work.
Darren Hall: Maybe just on <unk>.
Darren Hall: The planned mill expansion, so given that you're progressing detailed engineering.
Darren Hall: For.
Darren Hall: An expansion over the.
Darren Hall: Prior feasibility studies expansion.
Darren Hall: When do you think you would be looking to release, a new technical report that could outline.
Darren Hall: The cost and time line associated with that.
Darren Hall: And we've we've commenced.
Darren Hall: The work this year to do the detailed engineering to get us to a more definitive estimate in terms of timelines and costs for that.
Darren Hall: You know I think we'll be in a position around that July timeframe to make commitments into the.
Darren Hall: But in terms of a technical report, you know, the next formal technical report would be after the end of this year. But I think that for Valentine as a whole, but in terms of being able to provide more clarity, I'd say it's in kind of late Q2. So maybe associated with our Q2 results.
Darren Hall: The next stage of work, but in terms of a technical report.
Darren Hall: Next formal technical report would be after the end of this year, because I think that for Valentine as a whole, but in terms of being able to provide more clarity on sites in a kind of late Q2, so it might be associated with our Q2.
Darren Hall: Results.
Francisco Custanzo: Okay, thank you.
Speaker Change: Okay. Thank you and then I just wanted to ask one final question on the sprott loan to somebody given that it's almost fully drawn.
Darren Hall: And then I just want to ask one final question on the Sprott loan facility, given that it's almost fully drawn. Could you speak to what the best available options for refinancing that facility are? And maybe when you would explore refinancing, if it would be at the next available opportunity, or maybe later on, perhaps in 26, when you get to a point where you can refinance penalty-free?
Speaker Change: Could you speak to what the best available options for refinancing that facility already and maybe when you would explore refinancing if it would be at the next available opportunity or maybe later on perhaps in 'twenty six when you get to a point, where you can refinance penalty free.
Darren Hall: Yeah, no, I'll pass over to Daniella for any kind of, you know, more granularity in around the Sprott facility, but, you know, under the ARCA, we have the ability at the end of this year to refinance that facility. As we progress through this year, we'll investigate what our best structure is around balance sheet and how best to be able to use funds that are available to us. So no, I think it's early to be able to commit to, you know, how we were to go about that. But I think that, you know, given our balance sheet strength, given our production growth and the cash flow that we're going to see from our combined assets over the next couple of years, I think we're going to have a plethora of opportunities and choices in and around strengthening the balance sheet and looking at, you know, how best to position ourselves with that debt.
Speaker Change: Yeah, No I'll pass over to Daniela for any kind of more granularity around the sprott facility, but you know under the ACA, we have the ability at the end of this year to refinance that facility.
Speaker Change: As we progress through this year, we will investigate what our best structure is around balance sheet and how best to be able to use funds are available to us. So.
Speaker Change: No I think it's early to be able to commit to you know how we would go about that but I think the you know given.
Speaker Change: Given our balance sheet strength given out.
Speaker Change: Our production growth in the cash flow that we're going to see from our combined assets over the next couple of years I think we're gonna have a plethora of.
Speaker Change: Opportunities and choices in and around strengthening the balance sheet and looking at how best to.
Speaker Change: To position ourselves for that debt I mean, Daniela is there anything good luck to alpha.
Daniella Dimitrov: I mean, Daniella, is there anything you'd like to offer? That's exactly what I was going to say, Darren. There's certainly available capital for us and as we get into the second half, we'll be looking and balancing flexibility in the balance sheet cost of capital and the capital allocation to phase two.
Speaker Change: And that's exactly what I was going to say Darren will be.
Speaker Change: There are certainly.
Speaker Change: Our available capital for us and as we get into the second half will be locking in balance and flexibility in the balance sheet cost of capital.
Speaker Change: And <unk>.
Speaker Change: Our capital allocation to phase two.
Daniella Dimitrov: And one other comment around the debt. The debt was fully drawn in 2022. And the reason why you're seeing continued increases in that balance is because 75% of the interest gets capitalized to the loan quarterly until middle of this year. And that's when our payments start. So that loan is fully drawn. We've got $25 million remaining in our escrow account. We'll see that come out in the first quarter, and our payments will start in the second half of the year. Yeah, I know that that's helpful. I guess I should have said from the debt purses account.
Speaker Change: And one other comment around that does that.
Speaker Change: Was fully drawn in in 2022, and the reason why Youre seeing.
Speaker Change: Continued increases and that balance is because 75% of the interest is capitalized to the alone quarterly until middle of this year.
Speaker Change: And that's when our payments start to us so that loan is fully drawn.
About 25 million remaining in our escrow account and we all see that come out in the first quarter.
Speaker Change: Our payments will start in the second half of the year.
Speaker Change: Yes, no. That's helpful. I guess I should say from the that preceded the count but yeah. Thanks very much for your answer.
Francisco Custanzo: But yeah, thanks very much for your answer.
Francisco Custanzo: Thanks, Francisco. Thank you.
Francisco: Thanks Francisco.
Don Demarco: And the next question comes from Don DeMarco with National Bank. Thank you, Operator, and good morning, Darren and team. So, Darren, my first question is on phase two. And, you know, great to hear that that work is advancing. We'll look forward to details on costs and so on.
Speaker Change: Thank you and the next question comes from Don Demarco with National Bank financial.
Thank you operator, and good morning, Gary and team.
Speaker Change: So Dan My first question is on phase two and Oh.
Speaker Change: Great to hear that that work is advancing and we'll look forward to details on cost and so on I'm. Just wondering though about is it contingent on you know any assumptions on a ramp up of mining rates or perhaps exploration success in order to provide a bigger resource to sustain that that higher throughput the envision.
Darren Hall: I'm just wondering, though, about is it contingent on, you know, any assumptions on a ramp up of mining rates or or perhaps exploration success in order to provide a bigger resource to sustain that that higher throughput that you envision? Any caller on that would be appreciated, thanks.
Speaker Change: Any color on that would be appreciate it. Thank you.
Darren Hall: Yeah, no, thanks, Tom.
Speaker Change: Yeah no. Thanks, Tom.
Darren Hall: And again, it's, you know, without this sort of getting into a lot of detail and around the feasibility study, it is important to note that within the feasibility study, because it was a bankable document that Marathon had put in place to be able to raise funding, it could only value 2P or therein reserves. And within that there's 2.7 million ounces of reserves within a 5.1 million ounce resource base. So it's just a little bit over 50% of the metal was considered in that plan. So within that clan, it defined, I think it was a 14-year life.
Speaker Change: Again, it's you know without this sort of getting into a lot of detailed in around the feasibility study. It is important to note that within the feasibility study because it was a bankable document the marathon to put in place to be able to raise funding he could only value to pay or they are in reserves.
Speaker Change: And within that there's $2 7 million ounces of reserves within a $5 1 million ounce resource space. So it's just a little bit over 50% of the metal was considered in that plan.
Speaker Change: So within that client it to find out I think it was a 14 year life.
Darren Hall: And within that life, it had actually built stockpiles early in. early in life. When we look at that incremental capacity associated with phase two, all we've done to be able to substantiate it is actually to draw those stockpiles sooner.
Speaker Change: And within that life. It had actually built stockpiles early in.
Speaker Change: Early in life when.
Speaker Change: When we look at it that incremental capacity associated with phase two all we've done to be able to substantiate. It is actually to draw those stockpiles sooner we haven't yet looked at the opportunities to accelerate mining refi re sequencing costs not only for Westwood with what's in the reserve, but also to include the materials, let's resume.
Darren Hall: We haven't yet looked at the opportunities to accelerate mining, re-sequencing pits, not only with what's in the reserve, but also to include the material that's resourced because we won't need a bankable document per se. We can value resources and look at how that would contribute to the mine plan. We see great opportunity to improve on the existing resource base without adding to resources from what we've seen from the Leprechaun infill drilling, from the extensions to the southwest, and now for the material discovery we see there at the Frankston.
Speaker Change: Just because we won't need a bankable document aside we can value resources and look at how that would contribute to the to the mine plan. So we see great opportunity to improve on the existing resource space without adding to resources from what we've seen from the lipper cone infill drilling from the extension of the.
Speaker Change: Southwest and now for the a material discovery, we say, they're the Frankfurter.
Speaker Change: Hmm.
Don Demarco: That's helpful.
Darren Hall: On mining rates, what's your projection for ramp-up of mining rates to be able to accommodate a higher throughput perhaps a couple of years down the road? I think that in part is part of that question, is there an opportunity to be able to mine faster, to be able to further improve the economics associated with that, and that's something we can look at, you know, but what we saw was from the initial phase, to go from what was the original defined phase two, so from two and a half to four million tonne, to increase that to five plus, you know, we saw a payback in less than a year from going from four to five, so, you know, mining rates can be flexed and we'll continue to see significant opportunity to substantially improve the economics associated with that expansion.
Speaker Change: Okay, that's helpful and and on mining rates, what's your projection for ramp up of mining rates to be able to accommodate a higher throughput.
Speaker Change: Perhaps a couple of years down the road.
Speaker Change: I think that in part is part of that question is there an opportunity to be able to mine faster to be able to further improve the economics associated with that and that's something we can look at but what we saw was from the initial phase to go from what was the original defined phase two sorry from two and a half to 4 million ton to increase.
Speaker Change: That's a five plus you know we saw a payback in less than a year from going from four to five so you know.
Speaker Change: Good morning rights can be flexed them, we'll continue to see significant opportunities for <unk>.
Speaker Change: Substantially improved the economics associated with that expansion.
Don Demarco: Okay, thank you.
Speaker Change: Okay. Thank you and our final question, it's encouraging to see that the recent drill results from the Frankfurt won could.
Don Demarco: And final question, you know, it's encouraging to see the recent road results from the Frank Zone.
Darren Hall: Could you walk us through, I recognize it's still early, but provide some timelines for your continued exploration plans there and when we might see something on the order of a technical report or to get some idea of resource or technical report or other models? Yeah, no, I'll kind of, I'll make some comment and then pass it over to Tom to see if there's anything additional that he would layer.
Speaker Change: Could you walk us through I recognize it's still early but provide some timelines for your continued exploration plans there and when.
Speaker Change: We might see something on the order of a technical report or to get some idea of our resorts are taking part or are there other milestones.
Speaker Change: Yeah, no I'll kind of make some comments and then pass it over to Tom to see if there's anything additional that he would like but from a technical report perspective, I mean, we're in a great rush to put out a revised technical report.
Darren Hall: But from a technical report perspective, I mean, we're in no great rush to put out a revised technical report. I mean, our focus at Valentine this year is, is to safely and responsibly deliver the product in parallel. run the detailed engineering on Phase 2 and continued exploration. And the focus for the exploration is less about converting resources to reserves or extensional drilling to existing resources, even though we see great upside for that. It's really about understanding, having a better understanding of what the scope is for Valentine as a whole. You know, as I kind of alluded to, you know, we've only touched a small portion of what is a highly prospective 250 square kilometre land package.
Speaker Change: Focus at Valentine. This year is is to safely and responsible to deliver the product.
In parallel.
Speaker Change: Run the data.
Speaker Change: Solid engineering on phase two and continued exploration and the focus for the exploration is less about converting resources to reserves or extensional drilling to existing resources, even though we see great upside for that it's really about understanding having a better understanding of what the scope is for Valentine.
Speaker Change: <unk> as a whole.
Speaker Change: I kind of alluded to you know we've only touched a small portion of what is a highly perspective 250 square kilometer land package and within that the Valentine Lake shear zone, which is a subset of that we've only touched you know six to eight kilometers of the 32 kilometers shoes. So I think what we're doing right now is getting out and what kind of.
Darren Hall: And within that, with the Valentine Lake share zone, which is a subset of that, we've only touched, you know, six to eight kilometres of the 32 kilometre share zone.
Darren Hall: So I think, you know, what we're doing right now is getting our kind of hands around the tail of the beast in terms of what this is likely to look like as a generational asset, as we discover, as we uncover the kind of the next, you know, mining camp.
Speaker Change: Our hands around the title of the Beast in terms of what this is likely to look like is a generational asset as we discover as we uncover the kind of the next mining camp.
Darren Hall: So yeah, I've probably avoided the question of specifically in terms of timing of tech reports, but, you know, I don't think we'll see anything in the next 12 months.
Speaker Change: So you know appropriate avoided the question specifically in terms of timing of Tech reports, but.
You know I don't think well see anything in the next 12 months I mean, Tom is there anything you'd want to layer on that.
Thomas Gallo: I mean, Tom, is there anything you'd want to layer on that? I would echo that, Darren. We're just in the process, Don, of really getting our hands around what's going on with Frank.
Speaker Change: Yes.
Tom Gallo: I would echo that Darin right, where we're just in the process.
Tom Gallo: Really kind of getting our hands around what's going on with Frank just that we only spoke about Frank we're also drilling in a couple of other areas.
Thomas Gallo: We only spoke about Frank. We're also drilling in a couple of other areas. If you look at Frank and its footprint right now, Darren talked about a kilometre greater than a kilometre. If you go from the true corner of where it's been drilled at surface to the corner of the Leprechaun Pit, you're talking about a kilometre and a half. If you look at Leprechaun itself, mineralogically identical, Leprechaun is about a 700m strike length and it contains about 800,000oz in reserves. If you look at what Leprechaun is at 800,000oz of reserve, you're looking at effectively double the strike length potential at Frank.
Tom Gallo: And if you look at Frank.
Darren Hall: And its footprint right now Darren talked about a kilometer greater than a kilometer I mean, if you go from the true sort of corner of where it's been drilled at surface to the corner of the lack of content you're talking about about a.
Tom Gallo: A kilometer and a half and if you look at leprechaun itself.
Speaker Change: <unk> logically identical leprechauns about a 700 meter strike length and it contains about 800000 ounces in reserves you guys can.
Speaker Change: Check my math in the background, but if you kind of look at what leprechaun is at 800000 ounces of reserve Youre looking at effectively double the strike lengths potential of Frank now not saying that thats entirely mineralized, but that's kind of what we're looking to identify here. So.
Thomas Gallo: I'm not saying that that's entirely mineralized, but that's You know, to echo Darren, we would be pretty remiss to put out something from a technical report perspective until we've fully captured what we see to be the potential at Frank, to the southwest, also Sprite to the northeast of Leprechaun. Those who follow the story for a while may recall there's a small inferred resource in and around Sprite very tight to the Valentine Lake shear. We're doing some exploration drilling in and around there to the northeast of Leprechaun, and we'll hopefully be able to update the market soon with some interesting visual results that we've seen waiting for assets.
Speaker Change: To Echo Darrin, we would be pretty remiss to put out something from a technical report perspective until we fully captured what we see to be the potential it Frank So the southwest cells also sprite to the northeast of leprechaun.
Speaker Change: Those who follow the story for a while may recall, there's a small inferred resource centering around sprite very tight to the Valentine Lake share, we're doing some exploration drilling in and around there to the northeast of leprechaun and we'll hopefully be able to update the market soon with some interesting visual results that we've seen waiting for assets are you starting to talk about you know meaningfully.
Thomas Gallo: You're starting to talk about meaningfully expanding that mineralized footprint just in the southwest corner of the property, let alone further afield.
Speaker Change: Expanding that mineralized footprint just in the southwest corner of the property.
Thomas Gallo: I'd echo Darren and say I wouldn't expect a technical report in the next 12 months. If we can appropriately capture what we view to be the potential at Frank, then we'd start to look at incorporating that in a new resource reserve update, which would capture some of the stuff from Phase 2 as well.
Speaker Change: Let alone further further afield sadako, Darren and say I wouldn't expect a technical report in the next 12 months, if we can appropriately capture what we viewed to be the potential it Frank.
Speaker Change: Then we'd start to look at incorporating that into new <unk>.
Speaker Change: Resource reserve update which would capture some of the stuff from from phase two as well.
Don Demarco: Okay, great. Thank you.
Speaker Change: Okay, great. Thank you.
Don Demarco: That's all for me. Good luck with Q1. Thanks, Tom.
Speaker Change: That's all for me good luck with Q1.
Don Demarco: Thanks, Don.
Alex Sorrentino: Thank you, and the next question comes from Alex Sorrentino from Ventum Finance.
Speaker Change: Thank you and the next question comes Alex turned here from a van tongue financial.
Alex Sorrentino: Hi, good morning everyone. Just a couple of questions for me.
Alex: Hi, good morning, everyone.
Alex: Just a couple of questions for me first just on the Nicaragua.
Darren Hall: First, just on the Nicaragua, this is kind of a multi-party one here. Do you expect there to be any sort of seasonality with production from that unit this year? Then also your comments and your press release about production being 15% higher year to date. Is that, you know, grades or tons driven? I'm just trying to get a sense of, you know, how sustainable is that? I mean, your guidance for the year is 200 to 250,000 ounces for Nicaragua, so kind of a wide range. I'm just trying to narrow that down a bit. Yeah.
Alex: Is it kind of a multipart one here do you expect there to be any sort of seasonality with production from from that unit. This year and then also your comments in your press release about production being 15% higher year to date is that grade tonnes grades or tonnes driven I'm just trying to get a sense of how sustainable is that I mean, you're you're guy.
Alex: For the year is 200 to 250000 ounces for Nicaragua, So kind of a wide range I'm just trying to.
Alex: Narrow that down a bit.
Darren Hall: Hi, Alex, and thanks for the questions. You know, from a seasonality perspective, the production this year is not driven from those impacts. There are no seasonal variations we see in production forecasting.
Speaker Change: Yeah, Hi, Alex and thanks for the questions for.
Speaker Change: From a seasonality perspective production. This year is not driven from those impacts Serrano seasonal variations, we see them production forecasting.
Darren Hall: You know, what we are seeing is a very favourable start to the year from a productivity and performance perspective, which is driven, which manifests itself both in tonnes and in grade, primarily from Limon, which is processed at Limon and Libertad. No, we're confident in our provided guidance range of, you know, 230 to 280 for the full year.
What we are seeing is a very favorable start to the year from a productivity and performance perspective, which has driven which manifests itself both in tons and in ink right, primarily from among which is process at limon and Libertad.
Speaker Change: No. We are confident in our in our provided guidance range of $2 30 to $2 80 for the full year I think it was as much as anything to be able to foreshadow that.
Alex Sorrentino: I think it was as much as anything to be able to foreshadow that, you know, we had a strong finish to 2024, and that's continuing into 2025. And as we progress through the year, we'll provide updates as reasonable. Okay, that's good to hear.
Speaker Change: We had a strong finish to 2020 full and that's continuing into 2025 and as we progress through the year, we'll provide updates as is reasonable.
Speaker Change: Okay, that's good to hear.
Alex Sorrentino: Second question, just on the financial side, your cash went up $30 million since year-end. I guess it's a little bit surprising when you're still in the build phase and you have got some spending still left on Valentine.
Speaker Change: The second question just on the financial side.
Speaker Change: Your cash went up $30 million since since year end.
Speaker Change: You know I guess, it's a little bit surprising given you're still in the build phase and you have got some.
Speaker Change: Spending still left on Valentine, but I'm guessing I'm wondering that that bump in cash is that really just more of a timing of spending and maybe some adjustments on the working capital front.
Darren Hall: But I'm guessing or wondering, that bump in cash, is that really just more a timing of spending and maybe some adjustments on the working capital front? Yeah, I think in simple terms, I think it is. I mean, again, there's a number of things that happened during the quarter, but it's not reflective of spend per se.
Speaker Change: Yes, I think in simple terms I think it is I mean again, there's a number of things that happened during the quarter, but it is not reflective of spend per se. This is more just to highlight the strength of the financial position, we're in and the caliber is well positioned to fully.
Darren Hall: This is more just to highlight the strength of the financial position we're in and that Calibre is well positioned to fully fund the initial project, initial project capital at Ballantyne. And again, we are seeing buoyant metal prices, which everyone's participating in at this point as well. Yes, those are definitely helping. Yeah, for sure, bud.
Speaker Change: The initial project is the initial project capital Ballantyne.
Speaker Change: Yeah, and again, we are saying boy and metal prices, which everyone's participating in at this point as well which is nice.
Speaker Change: Yes, those are those.
Speaker Change: Those are definitely helping.
Speaker Change: Yeah for sure.
Alex Sorrentino: That's it for me, thanks. Thank you very much.
Speaker Change: That for me thanks.
Speaker Change: Thank you very much.
Operator: Thank you.
Darren Hall: And if there are no more questions, I would like to turn the floor to Darren Hall for any closing comments. Thank you, Operator. I'd just like to thank all our shareholders for their continued support and everyone's participation on the call this morning and questions. As always, Ryan and I and the leadership team are available if you have any further questions.
Speaker Change: Thank you and as there are no more questions I'd like to turn afford a Darren hall for any closing comments.
Speaker Change: Well, thank you operator.
Speaker Change: I would just like to thank all our shareholders for their continued support and everyone's participation on the call. This morning and questions as always Ron on the leadership team are available. If you have any further questions and at that point take care and be well and have a great day back to you operator.
Darren Hall: And at that point, take care, be well and have a great day.
Operator: Back to you, Operator. Thank you.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Speaker Change: Thank you. The conference has now concluded thank you for attending today's presentation.
Speaker Change: Your lines.
Yeah.
Speaker Change: [music].