Name of the Project
Valentine gold project.

Location
The project is located in central Newfoundland, Canada.

Project Owner/s
Marathon Gold.

Project Description
A prefeasibility study (PFS) has shown the project to be a high-value, low capital expenditure development, with a strong gold production profile and high operating margins over a 12-year mine life.

The PFS envisages openpit mining from only the Marathon and Leprechaun deposits. Each deposit will be developed in three phases.

Ore with a cutoff grade of 0.70 g/t gold will be prioritised for mill processing, initially at 6 800 t/d, or 2.5-million tonnes a year and then at 11 000 t/d, or four-million tonnes a year following mill expansion. Ore between 0.70 g/t and 0.33 g/t gold will be stockpiled for processing at the end of the mine life.

Average gold production of 175 000 oz/y is estimated for years 1 to 9 from the processing of high-grade mill feed, and 54 000 oz/y for years 10 to 12 from the processing of low-grade stockpile.

The PFS proposes an initial milling strategy based on grinding to 75 μm, followed by gravity concentration and cyanidation of gravity concentrates and tails.

Grinding will be undertaken through a semi­autogenous grinding mill and a ball mill. The processing capacity in Phase 1 will be 2.5-million tonnes a year. The mill will be expanded in Year 4 by coarsening the initial grind to 150 μm and adding flotation and regrinding of the flotation concentrates, followed by cyanidation. No additional grinding equipment will be required for this expansion phase.

Processing capacity in Phase 2 will be four-million tonnes a year. The PFS incorporates scheduled ramp-ups to 1.9-million tonnes a year in Year 1 and 3.3-million tonnes a year in Year 4.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of C$752-million and an internal rate of return of 45.1%.

Capital Expenditure
Initial capital expenditure is estimated at $275-million.

Planned Start/End Date
The feasibility study is expected to be completed in the first half of 2021, with the completion of the environmental assessment and Ministerial approval expected by mid-2021. The start of site-specific permitting is expected thereafter. Ground-breaking for site construction is scheduled for January 1, 2022, with first gold production expected by mid-2023.

The timeframes in the PFS have been considered without consideration of the potential impacts of the ongoing Covid-19 challenges.

Latest Developments
None stated.

Key Contracts and Suppliers
Ausenco Engineering Canada (PFS), including Mountain Technical Services (mining consultant), APEX Geoscience (geological consultant), Golder Associates (tailings consultant), Stantec Consulting (environmental consultant), Terrane Geoscience geotechnical consultant; and John T Boyd Company (mineral resource esti­mate) and Moose Mountain Technical Services (mineral reserve estimate).

Contact Details for Project Information
Marathon Gold CFO and business development, Hannes Portman, tel +1416855 8200 or email hportmann@marathoon-gold.com.