11:15 AM EDT, 09/03/2024 (MT Newswires) -- (Adds analyst comment.)

Calibre Mining (CXB.TO) on Tuesday reported an increase in gold resources at the Marathon Pit in the Valentine gold mine in Newfoundland and Labrador following ore-control drilling.

The company said the ore-control block model yielded 44% additional gold on 47% higher grades than modeled in the 2022 mineral reserve model (MRM).

The results outlined 190,901 tonnes grading 2.19 grams per tonne (g/t) gold containing 13,415 ounces, compared with 194,948 tonnes grading 1.49 g/t gold containing 9,330 ounces outlined in the 2022 MRM.

The results, coupled with the Leprechaun ore-control results, substantiate the 2022 MRM and increase confidence, the company said.

"Given these results, and construction at 77%, our confidence continues to increase as we responsibly advance towards first gold at Valentine during Q2 2025," said Calibre chief executive Darren Hall.

National Bank of Canada maintained its sector-perform rating and $2.85 price target for Calibre following the news.

The bank ascribed a neutral bias on the drill results, saying that it showed "tailwinds on grade and [ounces] for 2025 vs. the reserve block model," which contributes to modest de-risking and hints at tailwinds in year one production.

National Bank said the sample set is only a small portion of 2025 production, "so don't expect to move the needle."

Calibre shares were last seen down $0.12 to $2.16 on the Toronto Stock Exchange.

Price: 2.16, Change: -0.13, Percent Change: -5.48