RGN | Marathon Gold by Anderson Murray Media

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MINING | MARATHON GOLD

M A R AT H O N GOLD Approaching the finishing line at what will be Atlantic Canada’s largest gold mine

The Canadian Province of Newfoundland and Labrador (NL) is unquestionably a natural resource-based jurisdiction. The economy was historically built on fishing, but today major industries include logging, oil & gas and mining. The latter is one of NL’s largest and oldest trades and a major contributor to the economy, which is comprised of just half a million citizens. More than 15 mineral commodities have been produced or mined in the province, with notable projects including Vale’s Voisey’s Bay nickel operation, the iron ore projects near the towns of Wabush and Labrador City on the mainland, and the recently closed Duck Pond base metals mine on the island of Newfoundland. There has also been a long history of high-grade, narrow vein-type gold mines on the island. The province’s newest mine is set to be Marathon Gold’s Valentine gold project, located in central NL, with the TSX-listed company closing in on the finishing line after completing a feasibility study in April. “We’re presenting a project with an open pit, large production profile and that is relatively new for NL,” Marathon’s president and CEO Matt Manson tells RGN. “We’re the largest undeveloped mineral resource in Atlantic Canada and will be the largest gold mine in Atlantic Canada.”

The Valentine project currently

not at the top of a mountain,

boasts 4.8 million ounces (Moz)

we’re not up in the high Arctic

of gold in the total mineral

or in a national park.

resource (measured and indicated + inferred), with an

“We’re not moving

average grade of 1.75 g/t. The

communities or diverting

feasibility estimates 2.05 Moz in

rivers or draining lakes. We’re

the initial mineral reserve at a

on Crown Land in central

grade of 1.35 g/t after dilution,

Newfoundland with a road and

over a 13-year mine life. The

a power station nearby. It has

first nine years will see the

all the makings of a successful

company producing a sizeable

project due to those elements

173,000 ounces of gold per

of simplicity.”

annum.

Manson also stressed the need While the feasibility paints

to keep the project’s capital

the picture of a low initial

expenditures to a manageable

capital, high rate of return gold

level for a company like

development, Manson believes

Marathon to reasonably

that the most important

conceive of financing and

function of the study is to

developing independently. The

depict the simplicity of the

current C$305 million capex

project.

will allow Marathon to do just that, according to its chief.

The facilities at Valentine will pit deposits (Marathon and

Marathon not a sprint

Leprechaun), a mill and tailings

Environmental Assessment

facility, and the work camp.

(EA) is arguably the most

“That’s it,” Manson proclaims.

crucial stage of a mining

“When we show stakeholders

application in NL, and

and investors the setting of the

certainly the most time-

project, we point out that we’re

consuming in terms of the

be comprised of two open

MINING | MARATHON GOLD

“In the pantheon of mining projects, we hope elements of simplicity, is something that regu acceptability can be built – Matt Manson, Marathon G

overall project development

including: wildlife, water, air,

of Newfoundland migrates

timeline. The filing of the

communities and social health

seasonally through the Eastern

Valentine Environmental

to name a few.

part of the property, so there

Impact Statement (EIS) in

is a mitigation strategy around

September last year was

“Every one of those VCs

about the mid-way point of

is assessed based on our

Marathon’s EA process, which

potential impact on them and

Marathon is also engaged

is governed at Federal and

then we propose mitigation

in the area of community

Provincial levels.

strategies where we see

health. There are six local

potential for impact. We

communities within the socio-

The EIS provides an all-

are currently focused on

economic catchment area

encompassing description of

minimising our impact on

of the Valentine project, as

the social and environmental

water quality and fish habitats.

well as the Qalipu Mi’kmaq

impacts of the project,

that.”

and Miawpukek First Nation

with 17 value components

“We’re also focused on the

groups on the island. Last year,

(VCs) under assessment,

local caribou population. One

the company signed a social

of the sub-herds on the island

economic agreement with the

MINING | MARATHON GOLD

e that Valentine is one that presents all the ulators can see and understand, and social t in a constructive way” Gold president and CEO

former and a MoU designed

However, social acceptability

in the pudding in terms

to lead to a similar agreement

is not only gained through

of how our relationships

with the latter group.

cooperation agreements,

have developed with local

or commitments to

communities and with the

local employment and

government of N&L.

Social licence to operate

procurement. Manson believes

“In the pantheon of mining

a mining company’s licence

“It’s not for me to characterise

projects, we hope that

to operate starts with the core

those relationships, but I

Valentine is one that presents

principles of the organisation,

believe they are very strong

all those elements of simplicity

from the top down.

and it’s something we do

I discussed before, is

well as a company. We’re not

something that regulators can

“As the CEO of the company,

seeking to do this project in a

see and understand, and social

am I communicating to

way that will cause stress or

acceptability can be built in a

the team the values under

discomfort for anybody,” he

constructive way.”

which we operate, and what’s

assures.

acceptable and not acceptable? I think so far, the proof is

There’s a lot of expectation on

large part of Marathon’s

the shoulders of Marathon in

‘SG’ performance will come

Newfoundland. The Valentine

down to how it meets the

project will deliver 400 direct

expectations of the highly

jobs and a significant number

skilled labour market that

of ancillary jobs through local

exists within the resource-

procurement of goods and

based local economy.

services, in a region which has suffered economic and fiscal distress in recent years.

High risk high reward Typically, development stage

The company has no shortage

companies will down tools

of resumes in its bank as

on any exploration activities

the project approaches

in order to present a static

construction phase, so a

project for financing and permitting, then head back into the field once the mine is up and running. However,

MA RAT HON GOLD AT A G L A N C E

Marathon has elected to double down on exploration this year because it sees great potential to add ounces along the 20 km Valentine shear zone. The decision to execute higher risk exploration along the

STOCK TICKER: TSX:MOZ MARKET CAPITALISATION: US$598.1 million (as of October 08, 2021)

shear zone was made when Manson joined the company as CEO in 2019. This approach quickly led to the discovery of the Berry deposit in 2020,

following a successful step out drilling campaign.

MINING | MARATHON GOLD

Berry is in fact one of five

the mill. This year, it’s been

we haven’t explored,” Manson

deposits with mineral

about expanding and drilling

declares.

resources identified along

the deposit. We’re heading

the shear zone, but it remains

up towards 120,000 metres of

But in order to sustain this

the main focus of Marathon’s

drilling at Berry and believe it

high risk exploration strategy,

exploration efforts. In April,

has the potential to be another

the company needs to have the

a maiden resource estimate

Leprechaun, which is 1.3 Moz

requisite funds in the treasury

of 640,000 ounces, with an

in all resource categories.

at any given time. A series of

average grade of 1.75 g/t, was released to the market.

flow through financings on “I believe the resource

TSX over the last few years

inventory is still growing here,

have given Marathon that

“It’s located in between

but beyond that we’re still

licence to keep drilling, with

the existing Marathon and

carrying forward this ethos of

the treasury sitting at $107

Leprechaun orebodies, right

higher risk exploration; rolling million at the end of Q2.

beside the future location of

the dice and going to places

MINING | MARATHON GOLD

MATT MANSON, MARATHON GOLD PRESIDENT AND CEO

MINING | MARATHON GOLD

“That’s a good springboard for

in Q1 2022, with first gold pour

the final debt financing effort,

slated for 2023.

then they’ll be additional equity on top of that. It also

The construction phase

gives us a lot of flexibility

will bring the first wave of

now as we look at long-lead

employment opportunities

procurement, team building

to the central Newfoundland

and doing the types of early

economy, which has been

works that are required to

crying out for a new mining

secure the overall schedule of

project since the closure of the

a project build.

Duck Pond operation, and the polymetallic Buchans mine

“I think we’ve also benefitted

before that.

from an equity market over the last couple of years that’s

“Many workers left the

been interested in investing in

province to work on natural

quality gold projects in good

resource projects elsewhere

jurisdictions and we haven’t

in Canada, but we are hoping

been shy to take advantage of

to attract those highly skilled

that.”

people back home to work on

The home stretch

our project. They will be on rotation here as well, but with

Manson believes the company

a camp closer to home. In

is on the home stretch with

terms of the social dynamic of

regards to the EA, which he

that and the economic impact

describes as ‘the schedule

of the project, I hope it’s all

driver for our overall business’.

going to be positive.”

The EA process and final project financing should be completed by year-end, giving Marathon the opportunity to commence mine construction and site infrastructure works

MINING | MARATHON GOLD

Published by Anderson Murray Media Ltd

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