Name of the Project
Valentine gold project.

Location
Newfoundland and Labrador, Canada.

Project Owner/s
Marathon Gold.

Project Description
A feasibility study has proposed an openpit mining operation with a low initial capital cost and a high rate of return over a 13-year mine life.

Average gold production is estimated at 173 000 oz/y from 2024 to 2033, from the processing of high-grade mill feed, and at 56 000 oz/y from 2034 to 2036, from the processing of low-grade stock piles.

The project will have a mill capacity of 2.5-million tonnes a year, based on gravity leaching, expanding to four-million tonnes a day in Year 4, based on gravity-floating leaching.

Potential Job Creation
As at October 2022, about 100 persons were employed at the project site.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of C$600-million and internal rate of return of 31.5% at $1 500/oz gold. Payback is estimated at 1.9 years.

Capital Expenditure
A new cost-to-completion figure, from C$470-million to C$490-million, was issued in October 2022. This includes early works to be undertaken in the fourth quarter, and compares with the C$305-million initial capital cost of the project’s April 2021 feasibility study.

Planned Start/End Date
A formal decision to proceed to construction was made in October 2022. Full mobilisation is expected to start early in the first quarter of 2023, with first ore to the mill expected at the end of 2024. Production ramp-up is expected during the first quarter of 2025.

Latest Developments
Marathon Gold has started early works site activities at the Valentine gold project, having satisfied the preconstruction environmental assessment release conditions.

Work has also started on the project’s powerline from the nearby Star Lake generating station under the auspices of NL Hydro.

Marathon is continuing to advance an updated feasibility study for the project, which will refresh cost and scheduling data. It will also consider, for the first time, the addition of the new Berry deposit to the mine plan, offering an extension to the project’s mine life and an improved gold production profile.

Key Contracts, Suppliers and Consultants
Ausenco Engineering Canada (feasibility study); Moose Mountain Technical Services (mining consultant); APEX Geoscience (geological consultant); Golder Associates (tailings consultant); Stantec Consulting (site water management and environmental consultant); and GEMTEC Consulting Engineers and Scientists (geotechnical consultant).

Contact Details for Project Information
Marathon Gold, tel +1 416 861 0851.