Marathon Gold has made a formal decision to continue with the construction of Valentine Gold Project, located in the central region of Newfoundland and Labrador, Canada.
The decision follows recent completion of the project’s environmental assessments, an updated cost to complete assessment, and an evaluation of the overall investment merits.
Marathon has secured the provincial and federal Environmental Assessments (EAs) for the project in March and August this year, respectively.
The company also updated the project’s cost to completion to be C$470m to C$490m ($358m to $372m), including early works planned for the fourth quarter.
According to the feasibility study (FS) conducted in April last year, the initial capital cost of the project is estimated to be C$305m.
The updated assessment considered the impact of around 20 months of market inflation, along with reallocation of project’s costs, said Marathon.
Marathon Gold Corporation president and CEO Matt Manson said: “Valentine is one of Canada’s best undeveloped gold deposits located in one of the world’s best mining jurisdictions.
“This is a Project blessed by its location, by the simplicity of its design and operation, by the strong support of its stakeholders and community partners, and by its rich endowment of gold mineralization.
“After more than three years of environmental assessment we have now been approved by the regulators to move forward with its development.”
In June this year, the NL Department of Industry, Energy and Technology has issued the project’s mining and surface leases.
The province has most recently approved the project’s Environmental Protection Plan and the Early Works Development, Rehabilitation and Closure Plan.
With the granting of permits, the development of early works at the project site is expected to commence in the beginning of the fourth quarter of 2022.
In addition, the full construction is anticipated by January of 2023, delivery of the first ore by the end of 2024, and first gold production in early 2025, said Marathon.
Marathon board chairman George Faught said: “The Board of Directors is pleased to support management’s recommendation to proceed with construction of a mine at the Valentine Gold Project and we are firmly convinced that this is a mine that needs to be built.
“The detailed work completed by the Marathon team over the past two years, combined with the number of successful permitting milestones achieved, including the full release from provincial and federal environmental assessment, supports our collective decision to build the largest gold mine in Atlantic Canada.
“We are also convinced of the exploration upside and long- term potential that the Valentine Gold Project holds and are grateful for the support of all the stakeholders involved with us as we commence with this much anticipated capital project.”
