Name of the Project
Valentine Lake Gold Camp project.

Location
New Foundland, Canada.

Project Owner/s
Marathon Gold.

Project Description
Valentine Lake comprises the Marathon, Leprechaun, Victory and Sprite deposits totalling measured and indicated resources of 44.34-million tonnes grading 1.79 g/t gold and inferred resources of 24.43-million tonnes grading 1.57 g/t gold.

An updated independent preliminary economic assessment (PEA) has optimised the development of the Valentine Lake Gold Camp mineral resource by employing openpit mining and will encompass two gold recovery operations – a milling/flotation/carbon-in-leach (CIL) plant and a heap-leach plant.

The mill will process three-million tonnes a year of high-grade mineralised material. The plant will consist of crushing, milling, gravity recovery, flotation of gravity tails, flotation concentrate regrind, cyanidation leaching of flotation concentrate and flotation tailings through a CIL circuit, carbon elution and gold recovery circuit. CIL tails will be treated for cyanide destruction and disposed of as tails in the tailings storage facility.

The heap-leach pad will process three-million tonnes a year of low-grade mineralised material from openpit operations and will consist of crushing, heap leaching and carbon-in-column gold adsorption. The loaded carbon from the heap-leach facility will be sent to the mill facility for gold recovery. The project is expected to produce 2.72-million ounces of gold over the life of the project,
or an average of 225100 oz/y over a 12-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 5% discount rate, of $493-million and an internal rate of return of 30%, with a capital payback of 2.5 years.

Capital Expenditure
Preproduction capital is estimated at $355-million.

Planned Start/End Date
Initial production is expected in 2022.

Latest Developments
Marathon Gold has appointed Ausenco Engineering Canada as the lead consultant for the prefeasibility study (PFS) at the Valentine gold project.

Ausenco will undertake a trade-off study designed to assess the optimum scope, value, and execution strategy for the project, and will incorporate an updated production schedule, facilities design, operating and capital cost estimates, as well as process design, based on ongoing metallurgical studies.

The PFS is expected to take about six months to complete, with results expected early in the second quarter of 2020.

Key Contracts and Suppliers
Lycopodium Minerals Canada, John T Boyd Company, Apex Geoscience and Stantec Consulting (PEA); Ausenco Engineering Canada (lead consultant – PFS); and Moose Mountain Technical Services (mineral reserve estimation and mine design); Terrane Geoscience (geotechnical drilling and pit slope design), Gemtec (hydrogeology), Stantec (environmental assessment); and John T. Boyd Company (updated mineral resource estimate).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Marathon Gold investor relations manager Christopher Haldane, tel +1 416987 0714 or email chaldane@marathon-gold.com.