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Generation Mining Delivers Robust Independent PEA for Marathon Palladium Project
TORONTO, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Generation Mining Limited (CSE:GENM) (“Gen Mining”, “Generation”, or the “Company”) is pleased to announce results of
About this update from Generation Mining Ltd.
[{"type":"text","content":" TORONTO, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Generation Mining Limited (CSE:GENM) (“Gen Mining”, “Generation”, or the “Company”) is pleased to announce results of a positive independent Preliminary Economic Assessment study (“PEA”) prepared in accordance with National Instrument 43-101 on the Marathon Palladium and Copper Project (the “Project”) located in Northern Ontario. Generation acquired a 51% interest in the Project from Sibanye Stillwater in July, 2019, and has an option to earn up to an 80% interest by spending $10 million within four years (see Gen Mining’s news release dated July 11, 2019). The PEA provides a compelling base case assessment for the development of the Marathon Palladium Mineral Resource by open pit mining. Highlights (all dollar amounts in Canadian dollars on a 100% project ownership basis unless otherwise indicated) The Project would produce an average of 194,000 palladium-equivalent ounces per year over a 14-year mine life (including credits for copper, platinum, gold and silver). The Project generates an after-tax internal rate or return (IRR) of 30.0% and an after-tax net present value (NPV)of $871 million at a 5% discount rate at Nov 30/19 two-year trailing average metal prices (base case). The Project generates an after-tax net present value of $1,541 million and an internal rate of return of 45.8% at a 5% discount rate at recent spot metal prices (final LBMA London price fix for precious metals; final LME bid price for copper, Dec 31, 2019) The Project would generate base case after-tax cashflows of $520 million in years 1-3, resulting in a 2.5-year payback period. Actual palladium production will average 107,000 ounces annually over the mine life, at a Cash Cost Per Ounce of $US504 and an All-In Sustaining Cost (AISC) of $US586 per ounce, net of by-product credits. The PEA used only Measured and Indicated Mineral Resources in the Marathon Deposit in its calculations, and did not include the Geordie and Sally Deposits which are located on the same property (see News Release dated December 2, 2019). The Marathon Deposit has no outstanding royalties or financing streams registered against it. Gen Mining will host a conference call on Jan 7, 2020 at 11:00 am (EST) to discuss these results. Call-in information is provided at the end of this news release and on our website at www.Gen...