Calibre has reduced its 2020 production guidance after a ten-week suspension of mining activities due to Covid-19 pandemic. Credit: Markus Distelrath from Pixabay.

Canadian miner Calibre Mining has reduced its 2020 production guidance after a ten-week suspension of mining activities due to the novel coronavirus (Covid-19) pandemic.

The gold producer has now forecast production to be between 110,000oz and 125,000oz from its Nicaraguan mines.

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Before the temporary shutdown, Calibre expected 2020 production to be between 140,000oz and 150,000oz.

The Canadian miner has also revised its cost guidance to $880 to $920 per ounce for total cash costs and $1,070 to $1,100 per ounce for all-in sustaining costs (AISC).

Following a phased restart of operations earlier this month, the company has resumed exploration drilling with an expanded 60,000m programme, up from 47,000m.

Furthermore, a 20,000m infill drilling programme is underway.

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Calibre Mining CEO Russell Ball said: “The phased restart of operations continues as planned with enhanced safety and health protocols in place and we anticipate reaching steady-state production levels in July.

“With operations suspended for the majority of the second quarter, we now estimate 2020 gold production of between 110,000oz and 125,000oz, or approximately 20% less than our original guidance.

“Despite the fixed-cost nature of the business and an additional $40 per ounce in All-In Sustaining Costs from the unbudgeted increase in exploration drilling, and the unbudgeted infill drilling programme, we are only guiding to a 4% increase in costs on a per ounce basis, as we see increased benefits from our ‘hub-and-spoke’ operating philosophy and are now starting to see the bottom-line impact of our increased focus on operating efficiencies and supply chain management practices.”

In July, Calibre Mining signed a $100m binding agreement to acquire the El Limon and La Libertad Gold Mines, as well as the Pavon Gold Project and additional mineral concessions in Nicaragua from B2Gold.