Calibre Mining (OTCQX:CXBMF) said Monday it was granted key environmental permits from authorities in Nicaragua to develop and bring its new Volcan gold deposit into production, which could contribute to the company's production profile in this year's H2.

The Volcan deposit is located 5 km south of the company's Libertad mill, which has more than 1M metric tons of surplus processing capacity.

"With an initial open pit resource averaging 2.0 g/t gold, 2023 drilling confirms that the deposit can host higher-grade, near-surface gold mineralization," Calibre (OTCQX:CXBMF) CEO Darren Hall said.

The deposit represents a vein trend consistent with those in the Libertad district that were in production, the company said.