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Marathon to re-estimate Valentine costs

13th April 2022

By: Creamer Media Reporter

     

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Toronto-listed Marathon Gold has warned of a 15% to 20% increase in the life-of-mine (LoM) capital and operating costs of its Valentine project, in Newfoundland and Labrador, noting that it is in line with market trends.

The capital cost increase is mainly owing to higher materials costs and contractor rates, the company says, noting that higher consumables costs and labour rates will push up the operating and all-in sustaining cost (AISC) estimates.

The April 2021 feasibility study, which is now being updated, estimated an initial capital cost of $305-million, total LoM capital costs of C$662-million, total cash operating costs of $704/oz and AISC of $833/oz.

The impact of higher costs will be reflected in an updated technical report that Marathon is preparing for Valentine. It will also reflect a higher price environment and incorporate a new project-wide mineral resource estimate, which is expected to show an estimate of openpit measured plus indicated mineral resources that is both larger and better constrained.

CEO Matt Manson has also affirmed the development path for Valentine, stating that upon the receipt of final regulatory approvals and site permits, early works activities will start in the third quarter, supporting a schedule for first gold production in late 2024.

Edited by Creamer Media Reporter

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