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August 3, 2022
Generation Mining Limited (TSX: GENM; OTCQB: GENMF) (“ Gen Mining ” or the “ Company ”) announces that the Joint Review Panel (“ JRP ” or “ Panel ”) established to conduct an environmental assessment of the Company’s Marathon Palladium Copper Project (the ‘Marathon Project”) near Marathon, Ontario has delivered its report (the “ Report ”). The Reports sets out recommendations for the Company, and the federal and provincial governments, to mitigate or minimize any adverse effects of the Marathon Project.
The completion of the Panel report is a significant milestone in the Environmental Assessment process. This Report has been submitted to the offices of both the Federal Minister of Environment and Climate Change and the Ontario Minister of the Environment. The ministerial decisions are expected to follow within 120 days.
Jamie Levy, President and Chief Executive Officer of Gen Mining stated, “We are pleased to see the JRP complete its work and deliver its Report. This is a critical step in bringing the Marathon Project into production. We will carefully review the Panel’s recommendations and look forward to working with the affected stakeholders to continue advancing the Marathon Project while we await final government decisions. We acknowledge the diligence with which the Panel and participants, in particular Biigtigong Nishnaabeg First Nation and the Indigenous communities, reviewed the environmental and socio-economic impacts of the Marathon Project throughout the JRP process. We look forward to receiving positive decisions from the federal and provincial governments in due course.”
Gen PGM is proposing to construct, operate and decommission an open pit palladium mine approximately 10 km from Marathon, Ontario. The Project would include three open pits, an ore processing plant, tailings and mine rock storage facilities, site access roads, a transmission line, explosives facilities, water management structures, ancillary mine infrastructure and associated activities. The rate of production would be approximately 25,200 tonnes of ore per day with a proposed operating mine life of approximately 12.7 years.
The JRP was composed of three experts appointed by the federal Minister of Environment and Climate Change and the Ontario Minister of the Environment based on their knowledge, experience and expertise related to the environmental assessment of a proposed project. The role of the JRP was to review and assess, in an impartial and objective manner, the proposed project. The JRP for the Project reviewed the public record of the Project, including the environmental impact statement (EIS 2012), amendments to the EIS (EIS Addendum) and any supporting documents, such as the updated baseline studies (Baseline Studies 2020) submitted by the Proponent. The Panel posed extensive technical information requests throughout the process in addition to allowing for numerous opportunities for the public and government officials to express their views throughout the environmental assessment.
About the Company
Gen Mining’s focus is the development of the Marathon Project, a large platinum group metal mineral deposit in Northwestern Ontario. The Company released the results of the Feasibility Study on March 3, 2021 and published the NI43-101 Technical Report dated March 25, 2021. The Marathon property covers a land package of approximately 22,000 hectares, or 220 square kilometres. Gen Mining owns a 100% interest in the Marathon Project.
The Feasibility Study in respect of the Marathon Project estimated that at US$1,725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30%. Estimated upfront capital costs were C$665 million, net of equipment financing and pre-completion operating costs and revenues. 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. For more information, please review the detailed Feasibility Study dated March 25, 2021, filed under the Company’s profile at SEDAR.com.
The scientific and technical content of this news release was reviewed, verified, and approved by Drew Anwyll, P.Eng., M.Eng, Chief Operating Officer of the Company, and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 – Standards of Disclosure for Mineral Projects.