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Developing a World Class Gold Camp in Nicaragua
Covered in Premium Edition @ $0.125 + $0.05 / 40%
Every once in while in mining, events come together to create the perfect opportunity for a low risk home run. An opportunity so good, you just can’t pass it up. An opportunity that provides unlimited upside while offering substantially reduced risk at current valuations. Opportunities don’t come along every day that present a chance at a former prolific gold region, a chance at joining one of the brighter teams in the business and a chance at a ground floor opportunity in the redevelopment of an industry in a country starved of foreign investment for years. A company with projects so good that they show gold across the entire camp scale properties. So much gold, that the hardest task isn’t finding the gold, but choosing which projects to develop. A company with gold projects so compelling that it’s 100% interest in two of three past producing mines in the district, made up the core of production that helped tiny Nicaragua become the 15th ranked gold producer at the height of production during the mid 20th century. An historic gold camp with mines that went out of production not due to depleting reserves, but social and political instability due to a civil war and to this day remains undervalued due to the misconception that Nicaragua is still an unsafe place to do business.
That opportunity is Calibre Mining
Calibre Mining is centered at the heart of the historic Golden Triangle in Central America. This once famous past producing gold region helped Nicaragua become the 15th ranked gold producing nation globally in the mid 20th century until internal strife forced the shut down of the entire sector during the 80’s. Nicaragua has a rich gold mining history, but whose mining industry was driven into the ground when it was nationalized after the civil war in 1979 -81. By 1988 there was virtually no mining industry left in Nicaragua as the Nicaraguan Civil War had decimated the country and had left it poverty stricken, disease ridden, polluted and without any infrastructure or investment to rebuild. Only in the past few years has investment come back into the country.
Nicaragua is a former prolific gold producing nation that went into decline, not because of depleting reserves, but loss of infrastructure and investment after 1979 and only since 2001 has anyone decided to think about investing in Nicaragua. The mining sector did not fully open up until 2001 when the government passed new mining laws that made foreign investment in the sector in Nicaragua profitable for foreign enterprises. The industry had only recently (1997) made owning a concession legal and since has slowly seen investment in the sector increase in the past decade. From 2000 to 2008, foreign direct investment in mining sector grew almost a thousand percent from only $4.4 million to $39 million. One reason explained for the slow development of Nicaragua, is a common misconception that country is still communist. Nicaragua has been adopting capitalist policies regarding private ownership and made huge strides in the last 10 years in adopting policies that make them one of the more attractive developing nations to invest in today in the western hemisphere.
Nicaraguais now an attractive place to invest
Since 1990 Nicaragua has seen four peaceful government transitions, but is still largely misconceived as an unsafe place due to the very public and graphic nature of the civil war including the public murder of a US news reporter and the fact that the communists won the war and there has not been insurrection since. Current conditions would describe investor’s misconceptions as completely false as Nicaragua is now one of the safest emerging markets to invest in. Communist rule fell in 1990 and since that time have slowly adopted policies in the country aimed at attracting foreign investment. Nicaraguans have realized that without foreign investment to help rebuild their country, it will never become the place of manicured front lawns and paved roads that 1930 - 50’s produced in Nicaragua.
Some key investing facts in Nicaragua…
Caliber has a camp size position in the Prolific Golden Triangle
The Borosi Concessions make up 2/3 of the Golden Triangle
Calibre Mining is truly one of the best positioned gold companies in Nicaragua to capitalize on this unique opportunity in an underexplored prolific gold region. Considering Nicaragua has been underexplored for more than 30 years with mines that were at the height of production when they went out of production at the time of the civil war, CXB is well positioned for a material discovery. They have acquired a commanding land position at the heart of a historic producing gold camp called the Golden Triangle. Calibre’s Borosi Concessions cover 867km of highly prospective land that straddle a regional fault running northeast to
The Golden Triangle is named after 3 former past producing mines on either side of this fault system named La Luz - Siuna, Rosita, and Bonanza. These 3 mines have historically produced 5 million ounces of gold. Calibre’s claims cover 2 of the historical producers, (La Luz – Siuna and Rosita) that have a combined historical production of 2.5M ounces of gold, 4M ounces of silver and 305M pounds of copper.
In the last two years CXB has spent well over $3 million in exploration work on the Borosi Concessions including 140 line km of soil sampling, 1160 meters of trenching and 5200 meters of diamond drilling and is now positioned to reap the benefits of 18 months of groundwork.
Some Golden Triangle facts…
There are 2 main types of mineralization on the Borosi Concessions, low sulphidation epithermal systems and gold and copper skarn associated with porphyry mineralization. The area is cut by a regional fault that divides the claims geographically between east and west and within these camps there is the west side containing the Bonanza and Siuna camps and the East side of the fault containing the Eastern Epithermal and Rosita camps. From the production stats of Bonanza, it’s the epithermal targets that look to be providing the most reward and upside in the Golden Triangle. Low Sulphidation Epithermal Systems generally tend to run 300 meters to 600 meters deep and on the Borosi concessions, the veins have been mapped for miles.
The east side of the Borosi Concessions is what has got B2Gold involved and interested in Borosi with a $8M dollar 51% option over a five year period with Calibre having completed year one of the option and are currently in year two. Calibre believes there is another 3 million ounce low sulphidation epithermal system similar to the camp potential of Bonanza on the east side of the fault and the option covers most of the east claims. Since the option was signed, CXB acquired the former producing Rosita Mine and the highly prospective Riscos de Oro which are 100% Calibre in the east Borosi concessions. CXB recently announced a high grade discovery at Santa Maria(BTO jv) which sent the stock soaring up over 50% with the stock holding those gains since. Extremely high grade rock samples confirmed a soil grid that shows a very large strike on this epithermal vein and possible splays and open along strike in both directions.
Riscos de Oro
Riscos de Oro is an epithermal gold / silver deposit that has tons of promise as it was a former underground mine from ’77 – ’81. It looks like it was a promising new start up mine in the region when the civil unrest ultimately forced its closure in 1981 when locals ransacked the mine and burnt out the workings. The deposit is open along strike and at depth. Riscos is apart of a vein system of multiple parallel veins that trend for 7kms and are mapped out over a cumulative strike of 15km. Historical trenching 4km from Riscos returned12.4 g/t over 2.4 meters confirming that these veins are part of a larger system that run for miles. The underground workings at Riscos de Oro were driven over a strike of 450 meters and to a depth of 100 meters so there is lots of ore left in this deposit. The recent drill program tripled the known depth of Riscos to 300 meters and extended the strike to 600 meters in length.
Some better results at Riscos de Oro…
The gold equivalent grades are very good at Riscos de Oro pointing to an excellent opportunity at an underground gold / silver mine that could be in production for years with a very good depth profile over a material strike. If the Civil War hadn’t hit Nicaragua, Riscos might be in production today with this profile. 2,500 meters of HQ drilling is planned at Riscos de Oro in February to continue to expand on this highly prospective
Riscos has million ounce potential
Within the current dimensions of Riscos, which certainly needs a lot of infilling, the current holes average 36.6 grammeters over 15 available holes and if multiplied over the 300 * 600 meter dimension could easily end up with half a million ounces considering a standard tonnage factor of 2.6 for a quartz vein. I am not considering true widths in this calculation, but just want to give you an idea of how much gold is in the ground if these veins remain consistent along this 7km mineralized trend. With standard depths going to 600 meters in these types of deposits, it is easy to count a million ounce potential within a 1km strike at Riscos. Within the dimensions of 1 km strike and 400 meter depth at an average of 30 grammeters… gives you 1 million ounces.
Santa Maria(49% CXB, 51% B2Gold)
All the excitement in the share price has been about Santa Maria. Without question the samples confirmed the high grade nature of this very large vein system and the multi element soil anomalies indicate that CXB may be on the verge of a material discovery at Santa Maria. Santa Maria has a gold, copper, zinc, lead multi-element soil anomaly that so far extends for 1km in strike, is open at both ends and looks like it has possible splays.
Santa Maria is on a hill so could be a potential low cost underground operation driving an adit horizontal into the hill and dropping the ore down. The vein has been confirmed over 600 meters within an overall inferred 2km strike and represents a high priority
Quartz vein samples along a 600 meter strike of this vein graded very rich…
I cannot stress how important soils are in defining mineralized systems. Without soils, an explorer or prospector is completely blind as to how big the system is or where it is most intense providing key clues where to drill, especially in unglaciated terrain. Santa Maria is an exciting new discovery that gives B2 its first bona-fide prospect in the triangle.
On the west side of Borosi(100% Calibre), the claims surround the low sulphidation epithermal deposit Bonanza to the north which is the only other operational gold mine in the country other than B20 Gold’s two mines. Calibre’s recently announced discovery Northeast Bonanza, is the discovery of the Bonanza vein system striking onto Calibre’s claims to the northeast of the Bonanza mine. To the south the claims also cover La Luz – Siuna which is a high grade skarn system with a historical resource of 820,000 oz’s gold. CXB has recently acquired 2 claims (Asa and Pis Pis) between these targets that make the concessions contiguous.
La Luz – Siuna
La Luz – Siuna is a high grade gold skarn at the south end of the property which is at the intersection of two major fault structures making it highly prospective for a major gold deposit. Past production includes over 2.27 million ounces of gold at an average grade of 4 g/t au. Drilling at La Luz- Siuna has identified mineralization along a 1.5 km strike length. Historical drilling at La Luz – Siuna has outlined a historical resource in excess of 800,000 of gold. This mine was a producing open pit that was flooded out when a damn burst. La Luz – Siuna has two targets.
The Cerro Potosi prospect was where past open pit production was focused. There is a large body of wide mineralization on the east side of the deposit not mined and the whole
The Cerro Aeropuerto prospect is a very high grade
Together these 2 targets make up La Luz – Siuna and provide Calibre with a low risk / low cost opportunity to add material ounces to the inventory on the Borosi Concessions and a potential open pit
Northeast Bonanza is an exciting discovery because it extends the Bonanza vein system on to Calibre’s concessions. They recently released results of a trenching program with highlights of 7.3 g/t au over 4.7 meters and 1.35 g/t au over 10.90 meters. Trench results confirm that Bonanza mineralization extends at least 600 meters and soils extend the vein an additional 800 meters for a total inferred strike of 1.4 km. Northeast Bonanza is a set of ne trending parallel veins that give Calibre another exciting
Calibre has identified 4 priority targets on Borosi
The Borosi Concessions have four priority targets ready to be advanced. Two targets are at drill ready stage, and two targets are at discovery and will be delineated for potential drilling later in the year. In addition to these exciting gold targets, there are many regional prospects with multiple gold showings and active artisans. Calibre has identified a systematic approach to exploring this gold rich area and has targets at all stages of the exploration pipeline. Whether it is an initial regional stream sediment sampling program for the recently acquired Asa and Pis Pis concessions, to soils and trenching programs or finally drilling, Calibre is adding value to all its projects at all stages.
CXB has the gold rich targets, is in the right area, and the systematic approach to get it done in evaluating this once prolific gold camp. 2,500 meters of drilling at Riscos de Oro will kick off the glitzy part of Calibre’s first half exploration program for 2011 in February, but it is the groundwork that leads success which Calibre has already laid the foundation to. Calibre’s Borosi Concessions will yield up a pipeline of high quality gold targets for years to come as modern day exploration techniques and theories are applied to this underexplored, but once prolific gold region in Central America.
Good things come in pairs
The Right Partner in B2Gold
B2Gold has partnered with Calibre for the chance at an elephant on the other side of the fault opposite Bonanza. This discovery of an epithermal vein system at Santa Maria could be part of a very rich multi-element vein system if initial samples are any indication of the vein beneath. The market gave ‘a big thumbs up’ and reacted extremely positive towards this announcement. The theory is that these large gold systems usually are deposited on either side of these regional faults and that Bonanza’s twin is somewhere on the east side of the fault.
The deal with B2Gold is an initial 51% interest in most of Calibre’s East Borosi concessions for $8M in exploration expenditures over 5 years as Calibre as the operator. To date Calibre has completed $2.9M in expenditures on the joint venture properties. B2Gold has the option to increase the interest to 65% on a specific deposit by funding a prefeasibility study. The option is deposit specific and Calibre has the reciprocal right to deposits on the jv property.
B2Gold operates the only 2 gold mines in the country other than Hemco which operates the 42,000 oz per year Bonanza and have made a serious work commitment to the East Borosi Concessions. B2Gold is committed to Nicaragua and developing the gold mining industry in the country and committed to Calibre as a premiere exploration company that has one of the best land packages of any gold explorer in the country. Considering the heavy investment made and B2Gold’s commitment to Nicaragua and the highly prospective nature of the properties, B2Gold is the best partner one could have and is the only legitimate miner in the country. Their finance, expertise, and commitment to Nicaragua can only help CXB move the Golden Triangle properties forward and back into production and have put a huge vote of confidence in Calibre’s management to do this.
The chance at discovery of another Bonanza type mine that can be in operation for decades has got B2Gold very interested in the East Borosi concessions funding a rich exploration program. Calibre has an ongoing soil survey program in the joint venture properties with sampling and mapping to be initiated again in late February, followed up with trenching this spring.
Top ‘Calibre’ Management
When it comes to investing in the resource sector, top management is vital in bringing a successful project along. A quality deposit will stay just that without the right people in place to develop the deposit, secure financing, bring value to shareholders and be a leader in creating great relations in the communities they are operating. Calibre has management that covers all aspects of a premiere exploration company preparing its projects for future development.
Calibre’s CEO Rob Brown is one of the best and brightest minds in the mining industry and is proven by has rapid ascent in the community now leading a highly prospective exploration company with projects that have the potential to be put in production in a quick timeframe. Rob is very astute at identifying early stage projects. He took Barrick’s $5 million small cap exploration portfolio and turned into a small fortune worth over $100 million as the company’s exploration manager.
In addition to an up & coming young CEO who has had success in all aspects of his career, the Featherstone guys are behind Calibre Mining in a big way. Featherstone is a premiere financier to the resource industry. Having representation from Featherstone shows that this project is highly prospective and indicates they have a high degree of confidence in Calibre’s Borosi Concessions. Featherstone just doesn’t pick any company to load their people on to.
Hon. John Reynolds is also a member of the board who is a member of the Queens Privy Council and is the person you want on your side in a diplomatic dispute. The honorable Reynolds has played important roles in mediating conflict disputes in the past including helping resolve the disputed iron ore claims near Ungava Bay in Quebec. Hon. Reynolds sits on the board of Oceanic Iron where they are now moving forward with the iron ore project at the north end of the Labrador Trough.
CXB has the management with the key qualities to make a successful gold company in this historic gold region. Management with a track record of identifying quality projects and developing them, management that has the right industry partners in B2 Gold and Featherstone, and has one of the best representatives a board could have in the Honorable John Reynolds. CXB has all the key components in management to position a gold company for future success.
Calibre is a Leader in Social & Environmental Responsibility
Calibre has made it a corporate policy to be a positive social influence in the communities they are serving. Social responsibility was one of the first things management mentioned when I sat down and interviewed Rob, and Calibre is determined to be a community leader in social responsibility, health and safety practices, and environmental policies similar to those in place in Canada. This is especially important in jurisdictions like Nicaragua where a company could abuse lack of policies that help sustain the communities where they are operating. Over the long run, having such policies will only impact positively in the community and help sustain the community. These policies will bring community support when it comes to developing a project into a mine. Calibre plans on being a mining presence in Nicaragua and policies like these will make Calibre a friend to the community. As a part of Calibre’s commitment to the community they having an ongoing program of helping keep the local hospital supplied with the basic essentials that they were lacking before.
Low Hanging Fruit
Columbia was a country with low hanging fruit. Nicaragua is the same.
Lack of promotion of Nicaragua’s rich natural resources, stable political environment, safe jurisdiction and favorable tax laws have led to this country being left largely undiscovered while billions of investment dollars pour into Nicaragua’s neighbors. This lack of promotion is a good thing for investors as it represents a ground floor opportunity to get into a former prolific gold producing nation acquiring prolific gold properties at a bargain basement price and at the beginning of the investment cycle in Nicaragua. Calibre is at the heart of this historic district where it all started way back in the 1930’s and is well positioned for discovery in the Golden Triangle. The Golden Triangle has been vastly underexplored for the last 30 years and represents a country with low hanging fruit. Nicaragua has a gold rich history and literally several projects that are worthy of production at gold prices five years ago, never mind today.
Nicaragua has all the same fundamentals that Columbia had a few years ago. It is a cheap place to invest due to prior civil unrest and has been relatively underexplored for years by modern techniques because of lack of investment which creates opportunities for discovery. Investment went into Columbia 5- 8 years ago and now you are seeing the product of those investments with multibillion dollar gold discoveries like Ventana Gold Corp’s La bodega Project or the creation this year of
Companies like Calibre and B2Gold who are laying the ground work in Nicaragua are going to be the beneficiaries of discovery in gold rich Nicaragua over the coming years. Calibre has already extended the Bonanza veins north and now has this new high grade
Calibre is Positioned for Exploration & Development Success in Nicaragua
The task is big, methodically exploring and choosing the best targets to delineate for potential producing mines in Nicaragua, but CXB has the odds in their favor developing projects that were shutdown due to external forces and not due to depleting reserves or low gold prices. CXB has an up and coming mining mind in CEO Rob Brown when it comes to identifying early stage material targets for advancement. They also have the finance people to back them up. Both Sun Valley and Yamina have significant positions in Calibre and are watching CXB’s progress very closely in this gold rich region. When Calibre does make that big discovery or brings a project along to the point where it looks like a lucrative producer, there will be very keen interest in CXB. Nicaragua represents a place of easy production ounces and would be potentially a country where a major could easily ramp up production. With the investment climate increasing, and social and political climate in Nicaragua stable for the past decade, now is the time to get into this country on the ground floor that is beginning to grow in leaps in bounds.
Calibre is literally sitting on one of the best and most prolific undeveloped gold camps in the world. The Golden Triangle has already yielded 5M ounces and chances are there is at least another 5M easy ounces before you even think about looking deeper in the camp. In such an underdeveloped gold camp that will yield a pipeline of quality gold targets with a potential production profile lasting decades, Calibre is truly an undervalued and hidden gem ready to be brought out and dusted off as they start to advance these highly prospective projects towards production decisions.
Calibre’s Golden Triangle has rich vein systems that literally run for miles and is sitting on a unique geological sequence that forms this gold rich area known as the Golden Triangle. The Golden Triangle is truly one of the last places in the world with low hanging fruit as Nicaragua’s gold projects were put on ice while the rest of the world’s deposits were depleted at a much lower price. Nicaragua had gold projects that competed with projects a generation ago. The bottom line, the quality of Calibre’s projects is just that much better than those in the rest of the world, being left virtually untouched for the last 30 years. Calibre is sitting on a world class >10M ounce high grade gold camp just waiting to be defined and put back in production with 2 projects that have 1 million ounce potential and new and exciting discoveries being announced all the time like the high grade discovery at Santa Maria. CXB is set to add material value in the 2011 exploration year.
Calibre is rated as a very strong buy with both early stage grassroots discoveries and high potential historical targets.
MGMT = 5 stars
Value = 5 stars
Growth = 5 stars
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