11:16 AM EST, 11/25/2024 (MT Newswires) -- (Adds analyst comment.)

Calibre Mining (CXB.TO) on Monday said it discovered gold mineralization beyond the Valentine gold mine resource in Newfoundland, highlighting that the area's potential exceeds what is laid out in the 2022 feasibility study.

Highlights of the results include 2.43 grams per tonne (g/t) gold over 172.8 meters, 2.12 g/t gold over 95.4 meters and 2.26 g/t gold over 78.3 meters.

The results include a number of intercepts with visible gold and both high-grade intersections and broad zones of continuous mineralization have been identified in several holes located outside of known mineral resources.

"With construction 85% complete, the funded project remains on schedule for first gold in Q2 2025," said Calibre chief executive Darren Hall. "Successfully delivering Valentine will transform Calibre into a mid-tier gold producer with annual production of 450,000 to 500,000 ounces."

National Bank of Canada maintained its outperform rating and $3.60 price target on Calibre's shares following the news.

The bank said the target is based on 5.00x EV/EBITDA NTM.

"Our thesis is supported by peer-leading ~75% production growth over N3Y as Valentine commences commercial production, strong cash flow generation, exploration/resource accretion given spare mill capacity tempered by short mine life at Nicaragua," National Bank said.

Calibre shares were last seen down $0.035 to $2.32 on the Toronto Stock Exchange.

Price: 2.32, Change: -0.04, Percent Change: -1.49