Generation Mining said that it has secured a key federal approval pertaining to its Marathon palladium-copper project in Northwestern Ontario, Canada.
The permit was granted by the government through amendments in the Metal and Diamond Mining Effluent Regulations for the project.
It will enable Generation Mining to construct specific water management structures and operation of key infrastructure at the palladium-copper project.
Generation Mining said that the remaining provincial and federal approvals and permits required for the project’s construction are anticipated to be granted in the coming months.
Generation Mining president and CEO Jamie Levy said: “We are now on the cusp of having one of the only permitted copper and PGM projects in North America that can be constructed and brought into operation once we obtain the requisite financing.
“The Marathon Project is one of the most advanced critical mineral projects in Canada, and this government approval represents another milestone on the path to developing Canada’s next copper and palladium mine.
“The Marathon Project will support the economic growth and competitiveness of Canada and Ontario, as well as provide socio-economic benefits for Indigenous and local communities.”
The new permit comes after the approval of the closure plan for the project by the province of Ontario in November 2023.
Located along the Trans-Canada Highway, the Marathon palladium-copper project is estimated to produce a total of 3.6 million ounces of palladium equivalent (PdEq) over its current mine life of 12.5 years.
The Marathon project entails the construction, operation, decommissioning, and remediation of three open pits to produce copper concentrate. This concentrate will primarily contain copper, palladium, and platinum, among others.
The project also encompasses an onsite ore processing facility, a 115kV transmission line, a mine rock storage area, an access road, a process solids management facility, and a water management system, and other infrastructure.
According to a March 2023 updated feasibility study (FS), the Marathon project is expected to require initial capital costs of C$1.11bn ($800m).
The FS also reported that the Marathon palladium-copper project has a net present value (NPV) of C$1.16bn ($840m) with a payback of 2.3 years. Its projected internal rate of return (IRR) is 25.8%.
