THIS Unique Strategy Could Change the Entire Gold Mining Industry as We Know It
Gold is back, baby… and in a big, BIG way.
Another 10% increase in gold demand to 4,021 tonnes in 2021 marked the 12th consecutive year that central banks were net purchasers of the precious metal.
With so much global uncertainty on the rise, even Russia is stockpiling gold in an effort to sanction-proof its economy.
According to billionaire investor Ray Dalio, the superpowers come from those who hold the most gold. It’s the one store of value that you really can’t replicate.
Meanwhile Americans are suffering from the highest inflation in 40 years.
However, despite its traditional role as a safe-haven investment, there remains a serious issue on the horizon—an impending supply shortage of newly mined gold.
According to the World Gold Council, it takes on average between 10-20 years before a gold mine is ready to produce material that can be refined.
Typically, a series of conditions must be met, including: a high enough grade, a large enough resource, and access to infrastructure—all within a relatively condensed land mass size.
Running counter to this, we’ve identified a team of some of the greatest players in the game—elite experts in their fields of finding, acquiring, developing and producing gold.
The last time they worked together, they took a startup through to merger with what is now Kirkland Lake Gold, taking their stock from ~$0.50 to C$5.28 at the time of the merger, to what is now worth C$47* (and a market cap of $12.4 billion).
For those who got on board that train from the beginning and held on, based on a 0.475 consolidation, they would now be sitting on a value of ~C$22.33—or a return of 4,365% (or 43x).
Now, that team is back – and looking for a repeat.
This time, perhaps even faster… because they’re employing a unique business model that’s demonstrating ore delivery within just 18 MONTHS after a permit application is accepted.
That means they’re already generating EXCELLENT cashflow with the Company’s first properties, and they’ve used that cashflow to recently acquire two new massive assets to continue their successive run.
They’ve already grown the stock to C$1.28—except this time, they won’t need to merge or consolidate, as this time they’re going for the big one, and have plans to become the next major gold producer on the market, grown organically.
And it’ll all be made possible by their business model that’s blowing away expectations. That business model is called Hub & Spoke… and the team proving that it works is Calibre Mining (TSX:CXB) (OTCQX:CXBMF).
This story begins when Calibre Mining (TSX:CXB) (OTCQX:CXBMF) went into production through the acquisition of a pair of producing assets in Central America (Nicaragua). After assessing the assets and discerning a way to optimize them, President and CEO Darren Hall determined how the company could start integrating them. Because at that time, one of the properties (Limon Mine & Mill) was actually going into closure—despite containing a very large mill, on a state-of-the-art facility. Instead of letting the facility go to waste, Hall and his team decided to implement a Hub & Spoke model, where material can be trucked in from different sources to feed the mill and keep the operation going, through production and generating operating cashflow that today self-funds the rest of the business. That was in 2019, and now the Hub & Spoke model has been implemented since the early stages of 1Q20, when the first successful attempt of hauling ore from El Limon and blending multiple ores at the La Libertad mill took place. And while they’ve depleted over 335,000 ounces from mining since operations began, they’ve added another net +700,000 ounces along the way, converting from the inferred resource to a higher category. There is plenty of potential to add more and more spokes. Given that the metallurgy is similar across all its sites, Calibre doesn’t expect there to be any blending issues with its multiple ore sources. In doing so, Calibre has added +500,000 ounces from a new area within a complex of mines. La Libertad is the initial hub of the operation. But each new spoke only takes roughly 18 months before it can create new cash flow. In Nicaragua, Calibre now has three spokes, and two hubs—with another spoke in process, as the company is currently submitting the permits for its Eastern Borosi Project, which should be ready for production in 2023. Now the Hub & Spoke model has sparked a wave of copycats, such as i-80 Gold Corp. (TSX:IAU) (OTC:IAUCF), and multi-billion-dollar Thomson Reuters Corporation (NYSE:TRI) (TSX:TRI). However, while the Nicaragua assets have been proven successful in a trickier jurisdiction, Calibre Mining (TSX:CXB) (OTCQX:CXBMF) has acquired two new assets in the United States, with the potential to quickly become the true flagship for the company… Calibre Mining (TSX:CXB) (OTCQX:CXBMF) opened 2022 with the announcement of not only a record full-year of production of 182,755 ounces (compared to 136,009 oz in 2020), but also reported it had exceeded the high-end of full year 2021 production guidance. Now as 2022 rolls onward, Calibre expects gold production and sales of between 180,000 and 190,000 ounces from its mines in Nicaragua, with total cash costs between $1,000 and $1,100 per ounce and all-in sustaining costs between $1,100 and $1,200 per ounce. And that’s all without including the newly added assets in the United States… Unlike Nicaragua, which was recently dropped from inclusion in the Fraser Institute 2020 Annual Survey of Mining Companies, the Fiore acquisition delivered Calibre Mining entry into the world’s NUMBER ONE mining jurisdiction in the world—Nevada. This has the potential to become the biggest turning point in the company’s history. Completed in mid-January 2022, the acquisition delivered 100% interest in Fiore’s operating Pan Gold Mine, adjacent advanced-stage Gold Rock Project and the past producing Illipah Gold Project in Nevada, as well as the Golden Eagle project in Washington State (more on this one later). The transaction includes new (to Calibre) Nevada gold production of 50,000 ounces per year at the Pan Mine, a mineral resource base of 4.4 million ounces of gold Measured and Indicated, and 3.1 million ounces Inferred. However, it also came with the federally permitted, and fully-funded Gold Rock Project, which is very near term—especially with the Hub & Spoke model in place. Compared to Nicaragua, this gives Calibre a top-tier, low-risk asset, and an immediate increase to the company’s production and cashflow—as well as additional significant exploration potential. And unlike in Nicaragua, where some of the spokes are 100s of kms away from the hub, Calibre’s Pan Gold Mine and Gold Rock assets are only 13km apart. Think about it. Most investors looking at a jurisdiction like Nicaragua might be turned off by the risk… but Calibre made it work. Now transpose that onto a much, much easier working environment such as Nevada, and the potential is massive. Gold Rock is already federally permitted for development, with a robust Preliminary Economic Assessment in place, and a Feasibility Study underway. Together, the Nevada package is a combined 222km2 with significant growth potential. Until recently, Calibre Mining (TSX:CXB) (OTCQX:CXBMF) only utilized 50% of its mill capacity at its operations in Nicaragua. As the company finds new satellite deposits, they’ll continue to grow out their utilization. And Calibre already has US$22 million earmarked for exploration drilling in the country, with 10 drilling over 80,000 meters in 2022. On top of that, in Nevada the company’s not wasting any time, with a goal of revitalizing their intentions in the state, through an exploration program planned with 5 rigs currently drilling at Pan and Gold Rock. Calibre has said that its 2022 gold production is forecast to increase quarter over quarter with a significant increase during the fourth quarter. Production in the second half of 2022 is expected to be approximately 20% higher than that of the first half due to change in deposit grade profiles and mine sequencing. There are multiple decades of mining and public company experience behind Calibre Mining’s (TSX:CXB) (OTCQX:CXBMF) proven management team. With Newmarket Gold, they grew a $10-million-dollar company into a billion-dollar company in just over a year. That’s practically unheard of. Take a glance at the pedigree of just some of this team: Also noteworthy: B2Gold is Calibre’s largest shareholder at 34%, while management is aligned with shareholders, owning over C$10 million of equity. They most recently purchased over C$6.5 million of the C$105.1 million C$0.60/share financing (September 17, 2019). BEFORE YOU GO… Calibre Mining (TSX:CXB) (OTCQX:CXBMF) is poised for big things in 2022 and beyond, with its brilliant use of a Hub and Spoke model that’s not only working, it’s rapidly inspiring other companies to follow suit. We expect their news flow over the next few months to come very fast, especially with its fully-funded exploration drilling program in full swing. Be sure to subscribe and visit the official Calibre Mining website to learn more. 3] https://www.washingtonpost.com/business/2022/01/23/inflation-global-prices-biden/ 4] https://www.mining.com/web/mined-gold-supply-still-not-keeping-up-with-demand/ 5] https://www.gold.org/about-gold/gold-supply/how-gold-is-mined 6] https://finance.yahoo.com/news/80-launches-comprehensive-plan-create-110000030.html *IMPORTANT! BY READING THE CONTENT IN THIS PUBLICATION YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY** PAID ADVERTISEMENT: Dear Retail Corp., and its owners, directors, officers, employees, consultants, agents, affiliates and assigns (collectively, “Dear Retail”) have been compensated to conduct an awareness advertising and marketing campaign of the profiled company. 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Growth-Oriented, Americas-Focused, mid-tier Gold Producer with a diversified portfolio across 3 Operations
Proving the Hub & Spoke Model
Trucking around feed materials to utilize the processing plants, Calibre Mining (TSX:CXB) (OTCQX:CXBMF) has developed a very low CapEx way to get production, while also leaving the project open to several meaningful zones for discovery to improve the assets.
Hub & Spoke in the USA
Nevada: The NEW Flagship
While their track record speaks for itself in Central America, Calibre Mining (TSX:CXB) (OTCQX:CXBMF) recently made a MAJOR play to enter North America, through the strategic acquisition of Fiore Gold (TSXV:F).
Blue-Sky Potential
All-Star Team Leading the Way
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