Generation Mining (TSX: GENM; OTC: GENMF) and Metis Nation of Ontario have signed a consultation and process agreement for the Marathon palladium-copper project 10 km from the town of Marathon in northwestern Ontario.
The agreement sets out the principles that will guide the Metis and the company in developing their relationship and confirms their intentions to arrive at a community benefit agreement. The new agreement focuses on establishing a mutually-beneficial relationship, engagement, participation, and social and economic opportunities throughout the life of the Marathon project. It is another important step for the Marathon project as it continues to move forward in the environmental assessment process.
Generation Mining is focused on the development of its 100%-owned Marathon project that covers a land package of about 220 sq. km. A feasibility study released last year estimated that at US$1,725 per oz. palladium and US$3.20 per lb. copper, Marathon’s net present value (at 6% discount rate) is approximately $1.1 billion with a payback of 2.3 years and an internal rate of return of 30%. Upfront capital costs were estimated at $665 million. The mine would produce an estimated 245,000 oz. palladium-equivalent per year over a 13-year mine life at an all-in sustaining cost of US$809 per palladium-equivalent oz.
Late last year, Generation Mining made a $240-million streaming deal with Wheaton Precious Metals (TSX: WPM; NYSE: WPM). The funds will be used during construction at the project.
Last month, the company signed a memorandum of agreement with the Biigtigong Nishnaabeg First Nation covering the Marathon project.
More information about Marathon is posted on www.GenMining.com.
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