Name of the Project
Valentine gold project.

Location
Central region of Newfoundland and Labrador, Canada.

Project Owner/s
Marathon Gold.

Project Description
An updated feasibility study has presented, for the first time, a three-pit mine plan, based on the Marathon, Leprechaun and Berry deposits, with increased mineral reserves, an extended mine life and a higher gold production profile.

The study proposes the concurrent openpit mining of the deposits.

Average gold production is estimated at 195 000 oz/y over a 14.3-year mine life.

Other aspects of the mine design, such as site layout, basic mill flowsheet, mill expansion strategy, thickened tailings deposition strategy, 400-person camp and low-cost site power through the NL Hydro power grid remain as previously conceived in the April 2021 feasibility study.

Potential Job Creation
There will be full-time direct employment of 405 people during peak construction and 522 during operations.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $648-million and an internal rate of return of 22%, with a payback of 2.8 years.

Capital Expenditure
The cost to complete the project as at October 31, 2022, was C$463-million.

Planned Start/End Date
First gold is scheduled for January 2025.

Prestripping of waste material at the Leprechaun deposit started in October 2022 and mining will extend to 2036. Marathon will be mined from 2023 to 2037.

Mining at Berry is scheduled to start in the second quarter of 2025, subject to the receipt of all regulatory approvals, and be completed in 2033. The pit will be used for waste-rock and tailings disposal starting in 2034.

Latest Developments
Precious metals streaming firm Franco-Nevada has acquired an additional 1.5% net smelter return (NSR) royalty on the Valentine gold project for $45-million.

Franco-Nevada now holds an aggregate 3% NSR on the project.

“With this transaction, we have strengthened our balance sheet for the Valentine build in a substantial fashion while maintaining a disciplined overall approach to our capital structure,” Marathon CEO Matt Manson has said.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Marathon Gold manager, investor relations Amanda Mallough, tel +1 416 855 8202 or email amallough@marathon-gold.com.