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Marathon Gold’s EA for Valentine project in Newfoundland available for public comment

Examining drill core at the Valentine gold project in Newfoundland. Credit: Marathon Gold

Marathon Gold (TSX: MOZ) reports that the environmental assessment (EA) report for the Valentine gold project has been filed by the Impact Assessment Agency of Canada. The report and the accompanying draft conditions for release will be available for 30 days for public review.

The company noted that the draft EA concludes that the mine is not likely to cause significant adverse environmental effects, taking into account the implementation of appropriate mitigation measures. Should the environment minister agree with this finding, he can made a positive decision statement without reference to the federal Cabinet (Governor in Council).

The draft EA report and associated potential environmental assessment conditions can be found at the Impact Assessment Agency’s online resources portal for the Valentine gold project.

The parallel provincial EA was approved by the Newfoundland and Labrador Cabinet on March 17, 2022.

The largest undeveloped gold project in Atlantic Canada is about 80 km southwest of the communities of Millertown and Buchans, Newfoundland. The five deposits contain 56.7 million measured and indicated tonnes at 1.72 g/t gold for 3.1 million oz. There is also an inferred portion of 18.2 million tonnes at 1.70 g/t gold, containing 1.0 million oz.

Marathon is planning a conventional truck and shovel open pit with average annual production of 173,000 oz. gold per year for the first nine years of operation. Gold will be recovered in a conventional mill that includes gravity concentration, flotation and carbon-in-leach. A heap leach is also proposed.

The 2021 feasibility study outlined a project with a net present value with a 5% discount rate of C$600 million and an internal rate of return of 31.5% after taxes, using $1,500/oz. gold. The all-in sustaining cost per ounce of gold produced is anticipated to be $833. The initial capex of C$305 million will be paid back after taxes in 1.9 years. The mine has a projected life of 13 years.