- Generation Mining (GENM) announces that drilling on the Marathon project has been temporarily suspended
- Other exploration activities such as mapping and sampling are continuing
- Generation Mining currently owns an 81.7 per cent interest in the Marathon Project
- A recent feasibility study estimated a Net Present Value is approximately C$1.07 billion with a payback of 2.3 years
- Generation Mining Limited (GENM) is down 2.25 per cent, trading at C$0.87 per share at 12:50 pm ET
Generation Mining (GENM) announces that drilling on the Marathon project has been temporarily suspended due to the risk of forest fires.
The company received an Emergency Area Order from the Ontario Ministry of Energy, Northern Development and Mines.
Other exploration activities such as mapping and sampling are continuing.
At the time of suspension, the 8,000-metre drilling program was more than half-finished.
Seven holes were drilled on the Central Feeder Zone west of the Marathon Deposit, where most of the exploration drilling has taken place during the past 18 months. The core from those holes has now all been sent for assay and the company is anticipating results in the coming weeks.
Three holes were also drilled into the Chonolith Zone located north of the Marathon Deposit. Core from these holes is being split and logged and will be sent for assay shortly. The holes returned several mineralized sections (see photograph).
These were drilled to follow up a 2006 hole which returned 100.5 metres grading 0.93 grams per tonne palladium, 0.584 % copper, 0.1 g/t gold and 0.25 g/t platinum, starting at a depth of 215.8 metres. Nine additional holes are planned for this zone when drilling resumes.
Generation Mining’s focus is the development of the Marathon Project. The Marathon property covers a land package of approximately 22,000 hectares or 220 square kilometres. Generation Mining currently owns an 81.7 per cent interest in the Marathon Project, with the remaining interest owned by Sibanye-Stillwater.
The Feasibility Study estimated that at US$1725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30 per cent.
Upfront capital costs were estimated at C$665 million. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at an All-In Sustaining Cost of US$809 per palladium-equivalent ounce.
Generation Mining Limited (GENM) is down 2.25 per cent, trading at C$0.87 per share at 12:50 pm ET.
