Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
(Wallace Refiners) – 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%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.