NFLND
Marathon Gold tables Valentine regulatory update
Marathon Gold Corp. [MOZ-TSX, MGDPF-OTC] said it has received confirmation that changes to its Newfoundland gold project to accommodate an open pit at the Berry deposit do not require a new impact assessment.
The company said the assessment and subsequent permitting of the Berry Complex can proceed as previously anticipated, consisting of an Environmental Assessment (EA) and modified decision statement.
Consistent with previous guidance and the feasibility study, Marathon anticipates that these review processes will be completed during 2023 and 2024, well in advance of the scheduled start of mining at Berry in the second quarter of 2025.
Marathon Gold shares were largely unchanged on the news, easing 0.62% or $0.005 to 79.5 cents on volume of 495,760. The shares are currently trading in a 52-week range of $1.73 and 69 cents.
Marathon’s Valentine Gold Project was approved for construction in September, 2022 and early works commenced in October 2022. An updated feasibility study was completed in December, 2022, describing for the first time a three-pit mine plan based on the Marathon, Leprechaun and Berry deposits.
First ore is scheduled to be delivered to the mill in late 2024, with production ramp-up scheduled for the first quarter of 2025.
However, the updated feasibility study released in December, 2022, incorporates an amended permitting strategy to allow for the Berry Deposit to be included in the mining schedule for the first year of mine operations.
The updated study for the project outlined an open pit conventional mining operation, producing 195,000 ounces of gold annually for 12 years within a 14.3-year mine-life.
The project has an estimated proven mineral reserve of 1.43 million ounces (23.36 million tonnes at 1.89 g/t) and a probable reserve of 1.27 million ounces (28.22 million tonnes at 1.40 g/t). Total measured resources (including mineral reserves) stand at 2.06 million ounces.
But the company has said 2023-2024 exploration work at Valentine will be designed to maintain the project’s momentum of mineral resource growth even as mine development moves forward. “We see potential for this growth both within the mineral deposits in the existing mine plan, and more broadly over the full 32 kilometres of mineralized shear zone trend on the property,” said Marathon Gold President and CEO Matt Manson.
He said the project has benefitted from the addition of the Berry Deposit to the mine plan, allowing the company to present a project with a longer operating life and a significantly improved production profile.
“Our first three years of production will average 200,000 ounces annually at an all-in-sustaining cost of US$890 an ounce at an expected head grade of 3.75 g/t gold,’’ Mason said. “This is expected to generate substantial cash flow in the early years of mining.’’
Marathon Gold Confirms Berry Regulatory Assessment Process Proceeding to Plan
TORONTO, ON – August 30, 2023 – Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to announce that it has received confirmation from the Impact Assessment Agency of Canada (“IAAC”) that changes to the Valentine Gold Project (the “Project”) to accommodate an open pit and associated infrastructure at the Berry Deposit (the “Berry Complex”) do not constitute a new Designated Project, and as such do not require a new impact assessment under the Impact Assessment Act (“IAA”). This means that the assessment and subsequent permitting of the Berry Complex can proceed as previously anticipated, comprising an Environmental Assessment (“EA”) of a “new undertaking” by the provincial regulator, and a modified Decision Statement by the federal regulator. Consistent with previous guidance and the Project’s December 2022 Updated Feasibility Study, Marathon anticipates these review processes will be completed during 2023 and 2024, well in advance of the scheduled commencement of mining at Berry in the second quarter of 2025.
Background to Today’s News
In September 2020, Marathon submitted an Environmental Impact Statement (“EIS”) for the Project to IAAC and the Newfoundland and Labrador Department of Environment and Climate Change, EA Division, (“NLDECC”) pursuant to the requirements of the Canadian Environmental Assessment Act (2012) and the NL Environmental Protection Act, respectively. The scope of assessment for the EIS included two mining pits and related infrastructure (the Marathon and Leprechaun Complexes), a Processing Plant, a Tailings Management Facility, and associated site facilities (the “two-pit project”). The Valentine Gold Project was released from the provincial EA process on March 17, 2022, and the federal EA process on August 24, 2022. Mine construction commenced in October 2022, and permitting for specific site activities has continued throughout the mine development process in accordance with the construction schedule. At the end of June 30, 2023, overall permitting progress stood at 89% complete.
In December 2022 Marathon released results of an Updated Feasibility Study for Valentine based on the addition of a third open pit and associated infrastructure at the Berry Complex (the “three- pit project”). Marathon filed environmental assessment registration materials for Berry to the NLDECC and IAAC on August 11, 2023, following the completion of an effects assessment and consultation with both the provincial and federal regulators, Indigenous groups, communities, and stakeholder organizations.
The Berry Complex is subject to regulatory review requirements to identify, assess and mitigate potential environmental effects during all project phases, including construction, operation, decommissioning, rehabilitation and closure, and post-closure. Provincially, the addition of the Berry Complex is considered a new undertaking requiring a provincial EA. This EA has now commenced with the filing of registration materials. Federally, and as now confirmed by IAAC, the addition of the Berry Complex is considered a change to the Designated Project referenced in the August 2022 Decision Statement of the Minister of Environment and Climate Change Canada (the “Minister”), and potential amendments to the Decision Statement will now be considered. However, IAAC has informed Marathon that the Minister is not permitted to amend the Decision Statement to change the decision itself, and no new impact assessment under the terms of IAA will be required.
Qualified Persons
Disclosure of a scientific or technical nature in this news release has been approved by Mr. Tim Williams, FAusIMM, Chief Operating Officer of Marathon and Mr. James Powell, P.Eng. (NL), Vice President, Regulatory and Government Affairs for Marathon. Mr. Williams and Mr. Powell are qualified persons under National Instrument (“NI”) 43-101. Mr. Roy Eccles, P.Geo. (NL), of APEX Geoscience Ltd. is a Qualified Person for purposes of NI 43-101, is independent of Marathon and the Valentine Gold Project, and has reviewed and takes responsibility for the updated 2022 MRE prepared by John T. Boyd Company.
About Marathon
Marathon (TSX:MOZ) is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The Project comprises a series of five mineralized deposits along a 32- kilometre system. A December 2022 Updated Feasibility Study outlined an open pit mining and conventional milling operation producing 195,000 ounces of gold a year for 12 years within a 14.3- year mine life. The Project was released from federal and provincial environmental assessment in 2022 and construction commenced in October 2022. The Project has estimated Proven Mineral Reserves of 1.43 Moz (23.36 Mt at 1.89 g/t) and Probable Mineral Reserves of 1.27 Moz (28.22 Mt at 1.40 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 2.06 Moz (29.23 Mt at 2.19 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.90 Moz (35.40 Mt at 1.67 g/t). Additional Inferred Mineral Resources are 1.10 Moz (20.75 Mt at 1.65 g/t Au). Please see the NI 43-101 Technical Report “Valentine Gold Project,
For more information, please contact:
Amanda Mallough
Manager, Investor Relations
Tel: 416 855-8202
amallough@marathon-gold.com
Matt Manson
President & CEO
mmanson@marathon-gold.com
Julie Robertson
CFO
jrobertson@marathon-gold.com
To find out more information on Marathon Gold Corporation and the Valentine Gold Project, please visit www.marathon-gold.com.
NT4
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