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.”
Qualified Person 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.
Forward-Looking Information This news release contains
certain forward-looking information and forward-looking statements,
as defined in applicable securities laws (collectively referred to
herein as "forward-looking statements"). Forward-looking statements
reflect current expectations or beliefs regarding future events or
the Company’s future performance. All statements other than
statements of historical fact are forward-looking statements.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "continues", "forecasts",
"Projects", "predicts", "intends", "anticipates", "targets" or
"believes", or variations of, or the negatives of, such words and
phrases or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" be taken, occur or be
achieved, including statements relating to the development of the
Marathon Project; the timing and amount of funding required to
execute the Company’s development and business plans related to the
Marathon Project; and the financial returns from the Marathon
Project. All forward-looking statements, including those herein are
qualified by this cautionary statement.
Although the Company believes that the expectations expressed in
such statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
statements. There are certain factors that could cause actual
results to differ materially from those in the forward-looking
information. These include commodity price volatility, continued
availability of capital and financing, uncertainties involved in
interpreting geological data, increases in costs, environmental
compliance and changes in environmental legislation and regulation,
the Company’s relationships with First Nations communities,
exploration successes, and general economic, market or business
conditions, as well as those risk factors set out in the Company’s
annual information form for the year ended December 31, 2021, and
in the continuous disclosure documents filed by the Company on
SEDAR at www.sedar.com. Readers are cautioned that the foregoing
list of factors is not exhaustive of the factors that may affect
forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The forward-looking
statements in this news release speak only as of the date of this
news release or as of the date or dates specified in such
statements.
Forward-looking statements are based on a number of assumptions
which may prove to be incorrect, including, but not limited to,
assumptions relating to: the availability of financing for the
Company’s operations; operating and capital costs; results of
operations; the mine development and production schedule and
related costs; the supply and demand for, and the level and
volatility of commodity prices; timing of the receipt of regulatory
and governmental approvals for development Projects and other
operations; the accuracy of Mineral Reserve and Mineral Resource
Estimates, production estimates and capital and operating cost
estimates; and general business and economic conditions.
Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments
may differ materially from those projected in the forward-looking
information. For more information on the Company, investors are
encouraged to review the Company’s public filings on SEDAR at
www.sedar.com. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, other than
as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220707005763/en/
Jamie Levy President and Chief Executive Officer (416) 640-2934
(O) (416) 567-2440 (M) jlevy@genmining.com
Ann Wilkinson Vice President, Investor Relations (416) 640-2954
(O) (416) 357-5511 (M) awilkinson@genmining.com
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