Marathon Gold delivers robust feasibility study for Valentine project
(Kitco News) - Marathon Gold today released positive results of the feasibility study (“FS”) for the Valentine gold project in Central Newfoundland.
Highlights of the FS include after-tax IRR of 31.5% and NPV at a 5% discount rate of US$450M at US$1,500/oz gold, increasing to 42.2% and US$651M at US$1,750/oz gold. After-tax payback is 1.9 years.
The FS assumes a 13-year mine life with average gold production of 173,000 oz/year and 22 months construction and commissioning schedule assuming construction start in January 2022. First gold pour expected in October 2023.
The company said that the FS confirms robust economics for a conventional open pit mining and milling operation at Valentine, with low initial capital cost and high rate of return.
According to the statement, the Valentine gold project is projected to be the largest gold mine in Atlantic Canada, and a major contributor to the socio-economic wellbeing of the Central Newfoundland.
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 four mineralized deposits along a 20-kilometre system.