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, at the Valentine project.

The project has proven and probable reserves of 47.05-million tonnes at 1.36 g/t gold. Measured and indicated mineral resources are estimated at 56.66-million tonnes grading 1.72 g/t of gold and inferred mineral resources of 29.59-million tonnes grading 1.72 g/t gold.

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
Not stated.

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
Initial capital is estimated at C$305-million.

Planned Start/End Date
The mine is expected to take 22 months to complete, with the first gold pour scheduled for October 2023.

Latest Developments
Marathon Gold has signed a memorandum of understanding (MoU) with the Miawpukek First Nation. It pertains to the environmental assessment and development of the Valentine gold project.

Signed by Marathon president Matt Manson and Miawpukek chief Mi’sel Joe, the MoU provides for a process of ongoing engagement and consultation between the parties. This will include the completion of a traditional knowledge-, traditional land- and resource-use study, funding for a community-based liaison officer and the start of negotiations towards a socioeconomic agreement.

Marathon Gold also announced a nonbrokered C$50-million private placement financing to support the continued advancement of its exploration and development activities at the project on May 14.

The private placement financing comprises 14 285 714 common shares of C$2.45 each and 4 838 710 flow-through common shares of C$3.10 for each flow-through share.

Institutional investor Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates have subscribed for the offering.

In the aggregate, the investor has subscribed for 12 244 898 common shares for gross proceeds of C$30-million. Lassonde and Trinity have subscribed for 2 040 816 common shares for gross proceeds of C$5-million, as well as for 4 838 710 flow-through common shares for gross proceeds of C$15-million.

Some of Marathon’s board members and management team will also participate in the offering

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.