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Marathon awards key contracts for Valentine gold project in Newfoundland

An aerial view of the mining camp at the Valentine gold project. Credit: Marathon Gold

Marathon Gold (TSX: MOZ) has awarded key contracts for its Valentine gold project in central Newfoundland. The company has signed a letter of intent with SNC-Lavalin for detailed engineering for the mill and major facilities. SNC will also supply related equipment and construction packages.

Marathon has also appointed Progesys to be its partner in the development of an integrated construction management team. Progesys will supply project management, facilities construction and project control services. Marathon employees will assume responsibility for civil construction, contracts and procurement, camp services, and the site’s health, safety and environmental compliance. The partnership will continue through commissioning.

Contracting with vendors and service providers will be handled directly by Marathon, which will also be responsible for the project schedule, budget and quality of the build.

“This is an approach already taken by each of our senior team in the successful delivery of previous major capital projects,” Marathon president Matt Manson said in a media release.

“It provides the best way to capture the opportunities, and mitigate the challenges, that arise in every capital project … This strategy also allows us to draw upon the deep pool of construction expertise within the province of Newfoundland and Labrador, and the extraordinarily high interest we are seeing in the project,” Manson said.

Golder Associates was earlier awarded the contract for detailed engineering of the tailings management facility. Stantec Consulting is completing the water management design for the site, and Gemtec Consulting Engineers is responsible for the geotechnical design.

The Valentine project is awaiting federal approval of its environmental assessment, hopefully in time for early construction works to begin in the third quarter.

Marathon is working on an updated resource estimate that will incorporate up to 100,000 metres of drilling at the Berry deposit and the 2021 reverse circulation drilling done at the Marathon and Leprechaun deposits.

An updated feasibility study will be prepared by Ausenco Engineering using the resource estimate to be prepared by John T. Boyd and the updated mine plan and reserve estimate to be prepared by Moose Mountain Technical Services.