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Explorer Upgraded to 'Outperform' after Enlarging Inferred Gold Resource
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BMO Capital Markets advised that it has raised its rating on Calibre Mining Corp. to an Outperform after the firm successfully increased its mineral reserves and thereby considerably extended the projected mine life at two of its Nicaraguan gold projects.

In a March 29 research note, BMO Capital Markets research analyst Brian Quast reported that the firm is upgrading gold exploration and development company Calibre Mining Corp. (CXB:TSX; CXBMF:OTCQX) to "Outperform." The analyst stated that the upgrade was based upon a significant increase in mineral reserves and resources as of FY/20 at its Libertad and Limon projects located in Nicaragua.

Quast explained that the increase in reserves form the basis to extend the mine life at the properties and thus raises BMO Capital's NAV/share estimates by 7% to US$1.73, or CA$2.32.

The analyst reported that Calibre had delivered on expectations for increasing its underlying reserve base. The analyst stated that Calibre now reports probable reserves of 864 Koz Au and 1.1 Moz Ag. These amounts were said to include 568 Koz Au from Limon and 296 Koz Au from Libertad with the bulk of the resources at each location coming from open pit sources.

"Enlarging the reserve base is a milestone for Calibre, enhancing the mine life of Limon and Libertad," Quast wrote.

The analyst pointed out further that Calibre reported Measured and Indicated resources of 1.5 Moz Au grading 4.74 g/t and Inferred resources of 1.3 Moz Au grading 4.72 g/t.

BMO noted that two new discoveries by Calibre, identified as Atravesada and Panteon, along with the potential offered by the Pavon open pit gold mine, contributed to the higher Inferred gold grades.

The analyst highlighted that ultimately the inclusion of Limon's 462 Koz of open pit gold reserves serves to extend the Limon's mine-life considerably.

The analyst's report noted that key catalysts to watch for in Q1/21 are when the company is expected to release "the Pavon Pre-feasibility study, Rio Tinto Calibre exploration results and updated reserve and resource statements."

BMO Capital Markets advised that it has raised its rating on Calibre Mining to an "Outperform" from "Market Perform" and is reiterating its CA$2.50 per share price target. The stock is currently trading at around CA$1.71.


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Disclosures from BMO Capital Markets, Calibre Mining Corp., March 29, 2021


Analyst's Certification
I, Brian Quast, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

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