Marathon Gold announces key Valentine agreements
Marathon Gold Corp. [MOZ-TSX, MGDPF-OTC] said Monday it has achieved several key stakeholder agreements and permitting milestones related to the development of its Valentine Lake gold project in Newfoundland.
They include the signing of a benefits deal between Marathon and the province of Newfoundland and Labrador. The agreement represents a commitment by Marathon to maximize the economic benefits of the project within the province with a specific emphasis on employment, skills development, contracting, supplier development and the involvement of groups that are traditionally under-represented in the mining sector.
Marathon said it has also concluded an Outfitters Environmental Effects Monitoring Plan (OEEMP) for the Project, which establishes a framework to assess any potential adverse impacts on outfitters’ land and resource use in the region of the project during its construction, operation and decommissioning, and to monitor the effectiveness of mitigation measures for such impacts outlined during the project’s Environmental Assessment.
The OEEMP identifies a variety of wildlife monitoring programs and key performance indicators on potential project-related impacts on outfitting businesses, such as the availability of fish and wildlife resources, access, or diminished client experiences.
The OEEMP provides for a financial compensation mechanism for economic impacts demonstrated to be caused by Marathon’s mining activities.
Meanwhile, Marathon also announced the issuance of the surface lease for the project by the Newfoundland Department of Industry, Energy and Technology. This follows the issuance of the project’s mining leases on June 13, 2022. The surface and mining leases cover the development of the Marathon and Leprechaun deposits for a term of 20 years.
As well, Marathon said it has been informed by NL Hydro, the provincial electrical utility, that the Environmental Preview Report for the project’s approximately 40-kilometre-long power line has been reviewed and accepted by the Environmental Assessment Division of the NL Department of Environment and Climate Change, and subsequently released from its own Environment Assessment.
Marathon Gold shares advanced on the news, rising 1.6% or $0.02 to $1.26. The shares are currently trading in a 52-week range of $3.73 and $1.12.
The Valentine Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits. The majority of the resources occur in the Marathon and Leprechaun deposits, which also have resources below the pit shell. Both deposits are open at depth and on strike.
The Valentine Lake Gold Camp is accessible by year-round roads and is located in close proximity to Newfoundland’s electrical grid. Marathon maintains a 50-person all-season camp at the property.
The preliminary economic assessment study is based on an initial 12-year mine life and forsees average annual production of 225,100 ounces of gold at a life of mine all in sustaining cost of US$665 an ounce.
Pre-production capital is estimated at $355 million, the company said.