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July 12, 2022
Generation Mining Limited (TSX: GENM; OTCQB: GENMF) (“ Gen Mining ” or the “ Company ”) announces that its wholly-owned subsidiary, Generation PGM Inc. (“ Gen PGM ”), which is developing the Marathon Palladium Copper Project (the “ Marathon Project ”) near Marathon, Ontario, has entered into an agreement with Valard Equipment LP (“ Valard ”) for the lease of a construction camp (the “ Camp ”) located in Marathon, Ontario until June 30, 2023 (the “ Lease Term ”) and an option, exercisable at Gen PGM’s discretion, to purchase the Camp on or before the end of the Lease Term. In connection with this agreement, Gen PGM has also leased the existing serviced camp site from the Town of Marathon.
The Camp will be used to accommodate up to 263 workers for the initial site preparation phase through the construction phase. Additional accommodation capacity will be secured for the Marathon Project as construction ramps up to the maximum peak of approximately 1000 workers. Previously, the Camp was used to accommodate the workforce for a Transmission Line Project and has all the required infrastructure services, including a commercial kitchen, a recreation facility, a maintenance facility, and management offices. The Biigtigong Nishnaabeg First Nation community will operate and service the Camp as part of Gen PGM’s commitments under the Memorandum of Agreement with Biigtigong Nishnaabeg, previously announced on January 27, 2022.
Jamie Levy, President and Chief Executive Officer of Gen Mining stated, “This is the first of a number of steps we are taking this summer to advance the Marathon Project readiness, thus saving us time, in anticipation of initial site preparation and construction, which we expect to commence following receipt of required permits and financing.”
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.
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 up front 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
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