Marathon Gold Corporation announced that it has been advised by the Newfoundland and Labrador Minister of Environment and Climate Change, that the provincial government is giving the go-ahead to a proposed gold mine in central Newfoundland that is being touted as potentially the largest in Atlantic Canada and a “significant contributor” to the province’s economy.
Concurrently, Marathon has been advised that the Project has received approval by the Cabinet of the Government of Newfoundland and Labrador. This marks the completion of the provincial EA process, allowing Marathon to commence site-specific permitting including the acquisition of the Project’s Mining Lease.
Industry Minister Andrew Parsons made the announcement Thursday in the Newfoundland and Labrador House of Assembly. Parsons said the initial capital investment is estimated at $305 million, while total investment over the life of the mine is estimated at $662 million. He said Marathon estimates the project will contribute $2.9 billion to the provincial GDP and about $400 million in incremental revenues to the provincial treasury.
The company says it expects to create about 11,000 person years of employment in the province and employ an average of more than 400 people annually.
Matt Manson, President and CEO, commented: “We are very happy to be announcing both completion of the provincial EIS review process and full NL Cabinet approval for the Project to proceed. This approval comes earlier than expected, and marks an important milestone towards mine development. We are grateful for the diligence shown over the last three years by the members of the EAC in their review of the Valentine Gold Project, and the support it has now received from the Honourable Bernie Davies, NL Minister of Environment and Climate Change, and the Honourable NL Andrew Parsons QC, Minister of Minister of Industry, Energy and Technology, amongst others. Today’s news does not represent the completion of our mine approval process. The Project remains subject to final release from the parallel federal EA. In further good news, however, we were notified yesterday of the completion of the federal EIS review process. This allows a federal EA Report to now be issued for public review, followed by a determination of the Project’s acceptability by the Minister of Environment and Climate Change Canada. The completion of the provincial EA process, and completion of the federal EIS review, allow us to contemplate the successful completion of the overall EA process.”
Mr. Manson continued: “Over the last several years, Marathon has conducted extensive environmental and social data collection for the proposed mining operations at Valentine Lake. We have consulted widely with local communities, Indigenous groups, stakeholder organisations and regulatory agencies. The Valentine Gold Project is the most important new mine to be developed in the Province of Newfoundland and Labrador for several years. It will have a significant economic impact on the communities of Central Region and the wider province. Its approval for development confirms the reputation of Newfoundland and Labrador as a leading global jurisdiction for responsible mineral resource development and successful investment.”
Marathon’s principal asset is the Valentine Gold Project in the Central Region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. When completed, the Valentine Gold Project will be the largest gold mine in Atlantic Canada and a significant contributor to the economy of Newfoundland and Labrador.
The Project comprises a series of mineralized deposits along a 20-kilometre trend. A March 2021 Feasibility Study outlined an open pit mining and conventional milling operation over a thirteen-year mine life with a 31.5% after-tax rate of return and an average gold production profile of 173,000 ounces of gold per year for the first 9 years. The Project has estimated Proven and Probable Mineral Reserves of 2.05 Moz (47.1 Mt at 1.36 g/t Au) and Total Measured and Indicated Mineral Resources (inclusive of the Mineral Reserves) of 3.14 Moz (56.7 Mt at 1.72 g/t Au). Additional Inferred Mineral Resources are 1.64 Moz (29.59 Mt at 1.72 g/t Au).
Location Highlights
- The Valentine Gold Project is located in central Newfoundland
- Approximately 80km SW of the mining communities of Millertown and Buchans
- Project is road accessible
- NL Hydro substation at Star Lake 30km away
- Central Region with mine services and experienced workforce
- A mining region in a mining jurisdiction
About Marathon
Marathon (TSX:MOZ) is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The Project comprises a series of five mineralized deposits along a 20-kilometre system. An April 2021 Feasibility Study outlined an open pit mining and conventional milling operation over a thirteen-year mine life with a 31.5% after-tax rate of return. The Project has estimated Proven Mineral Reserves of 1.40 Moz (29.68 Mt at 1.46 g/t) and Probable Mineral Reserves of 0.65 Moz (17.38 Mt at 1.17 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 1.92 Moz (32.59 Mt at 1.83 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.22 Moz (24.07 Mt at 1.57 g/t). Additional Inferred Mineral Resources are 1.64 Moz (29.59 Mt at 1.72 g/t Au). Please see Marathon’s Amended and Restated Annual Information Form for the year ended December 31, 2020 and other filings made with Canadian securities regulatory authorities and available at www.sedar.com for further details and assumptions relating to the Valentine Gold Project.
For further information on Marathon Gold Corporation contact, Matt Manson, President & CEO, at mmanson@marathon-gold.com or 1 (416) 987-0711, and the Valentine Gold Project, please visit www.marathon-gold.com.