Generation Mining delivers robust feasibility study for Marathon
(Kitco News) - Generation Mining (TSX: GENM; OTCQB: GENMF) announced today the results of the feasibility study for the Marathon palladium and copper project, located near the town of Marathon in Northwestern Ontario.
The company said that the feasibility study supports an open pit mining operation with a robust rate of return over a 13-year mine life.
Highlights of the study include IRR (after-tax) of 29.7% and NPV (6%) of $1.07 billion based on a long-term price of US$1,725/oz for palladium and US$3.20/lb for copper.
The company expects a quick payback on low initial capital: $665 million (US$520 million) net of equipment financing and a 2.3-year payback period.
Mining methods will employ conventional open pit, truck and shovel operating practice. Three pits will be mined over the 13-year mine life, with an additional two years of pre-production mining to be undertaken where waste material is being mined for construction and ore stockpiled ahead of processing plant commissioning.
Generation Mining’s focus is the development of the Marathon project, the largest undeveloped palladium-copper mineral resource in North America. Gen Mining owns an 80% interest in Marathon, with the remaining interest owned by Sibanye Stillwater, which has certain back-in rights that allow it to increase its interest in the project to 51%.