TSX-listed Marathon Gold has filed an updated technical report for the Valentine gold project in central Newfoundland, Canada.
The report was prepared by Ausenco Engineering Canada and contains updates to the mineral resource estimate of the project.
The project feasibility study supports an openpit mining operation with a low initial capital cost and high rate of return over a 13-year mine life.
It has an estimated after-tax internal rate of return of 31.5% and a net present value, at a 5% discount rate, of $450-million at $1 500/oz gold, increasing to 42% and $651-million at $1 750/oz gold.
The study indicates an initial capital expenditure (capex) of $229-million and a payback period of 19 years.
The study sets out a 22-month construction and commissioning schedule, with construction expected to start in January 2022. The first gold pour is expected to occur in October 2023.
The study indicates average gold product of 173 000 oz/y between 2024 and 2033 from high-grade mill feed, and 56 000 oz/y between 2034 and 2036 from the processing of low-grade stockpiles.
There is life-of-mine total cost of $704/oz and all-in sustaining costs of $833/oz.
The study indicates a proven and probable mineral reserve of 2.05-million ounces.