- Marathon Gold (TSX:MOZ) has completed its pre-feasibility study and mineral resource estimate at the Valentine Lake Gold Project in Newfoundland
- The company now estimates the site contains around three million gold ounces
- The pre-feasibility study estimates the property can be mined at a relatively low initial capital cost and should have a 12-year mine life
- The company is now working on the site’s environmental assessment and feasibility study
- Marathon Gold (MOZ) is trading up 5 per cent to C$1.64 per share and has a market cap of $291 million
Marathon Gold (TSX:MOZ) has completed its pre-feasibility study and mineral resource estimate at the Valentine Lake Gold Project in Newfoundland.
Marathon completed the mineral resource estimate for Valentine using new geological models, tightened grade restrictions and closer drill holes for greater certainty of results.
The company now estimates the measured resource at the site to be 3.09 million ounces of gold, with an additional inferred mineral resource 0.96 million ounces of gold.
Marathon also completed its pre-feasibility study during the quarter, with the study supporting open pit operations on the site.
The study shows the property can be mined at a relatively low initial capital cost and should have a 12-year mine life. The study estimates an initial capital cost of C$272 million and a net present value of $472 million
Marathon managed to drill 12,000 metres of exploration at its Valentine camp prior to the camp closing, due to the coronavirus outbreak.
The initial results from the drilling program confirmed mineralization occurs in other areas of the site in significant enough quantities to warrant further exploration.
The President and CEO of Marathon Gold Matt Manson believes the completion of two key studies at the site is an important step for the project.
“Both studies, taken together, present a project that can be reasonably financed, developed and operated successfully by Marathon, with high cash flow potential at reasonable gold price assumptions,” he said.
Marathon still needs to complete the environmental assessment and the feasibility study for Valentine.
The company is also planning further exploration at the site to explore the 20-kilometre long mineralised zone that runs across the property.
Marathon Gold (MOZ) is up 5 per cent, with shares trading for $1.64 at 12:27 pm EDT.