10:51 AM EDT, 08/27/2024 (MT Newswires) -- Calibre Mining ( CXBMF ) on Tuesday released near-surface resource expansion drill results from the Pan heap leach gold mine in Nevada, which continued to reveal gold grades higher than the stated mineral resource grade of 0.4 grams per tonne (g/t) gold.

Highlights of the results include 0.45 g/t gold over 117.4 meters and 0.56 g/t gold over 59.4 meters.

The results demonstrate the potential to increase resources, grade, mine life and confidence around the Pan mine, the company said.

"Since acquiring Pan in early 2022, we have successfully increased mineral reserves by 50% net of two years of production depletion and with exploration success, we anticipate this trend could continue," said Darren Hall, president and CEO of Calibre.

Meanwhile, Calibre maintained its Sector Perform rating and $2.85 price target at National Bank of Canada following the news.

The bank said its thesis for Calibre is supported by its peer-leading near 75% production growth over the next three years as the Valentine project commences commercial production in the second quarter of 2025, strong cash flow generation and exploration/resource accretion given spare mill capacity tempered by Valentine development risk and limited Reserves in Nicaragua.

Calibre's share price was down more than 1% at last look to $2.30.

Price: 2.30, Change: -0.03, Percent Change: -1.29