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
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
Upon the receipt of final regulatory approvals and site permits, early works activities will start in the third quarter of 2022, supporting a schedule for first gold production in late 2024.

Latest Developments
Marathon Gold is considering the opportunities offered by the updated mineral resource estimate for the Valentine project.

The project’s total measured and indicated mineral resources have increased to four-million ounces (64.6-million tonnes at 1.90 g/t), a 26% increase in ounces, a 14% increase in tonnes and a 10% increase in grade, compared with the previous estimate.

The high-grade openpit measured and indicated resource of 3.4-million ounces of gold (38.6-million tonnes at 2.73 g/t) is a 28% increase in ounces, a 22% increase in tonnes and a 5% increase in grade, compared with the previous estimate.

Additional inferred resources of 1.1-million ounces (20.8-million tonnes at 1.65 g/t) have also been reported.

The newly defined Berry deposit has been confirmed as a major contributor to the project’s mineral resources. Berry has measured and indicated resources of 1.1-million ounces (17.2-million tonnes at 1.97 g/t) and an inferred resource of 0.25-million ounces (5.33-million tonnes at 1.49 g/t.)

The estimate incorporates two years of exploration drilling at the Berry deposit, which has been confirmed to be comparable in scale and gold content to the nearby Leprechaun deposit.

Berry is located immediately adjacent to the proposed site of the project’s gold mine.

In parallel with the permitting and engineering work, a study is under way to consider the opportunities offered by the 2022 mineral resource estimate on the project’s mineral reserves, production profile and mine life.

The results of this study will be incorporated into a new NI 43-101 technical report, which will constitute an updated feasibility study for the Valentine project, the work for which will be completed in the fourth quarter.

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.