Toronto-based Marathon PGM Corp. said it has shaved $92 million off the cost of developing and operating a platinum group metals and copper open pit with the release of a new feasibility study.
In a Nov. 24 news release, the company reported it has a better mine plan, improved metallurgical recoveries and the potential for a bigger mineral reserve.
The pre-production capital expenditures are $351 million and $494.6 million over the 10-to-12-year mine life.
The company has identified a proven and probable mineral reserve estimate of 91-million tonnes containing 497-million pounds of copper and 3.394-million ounces of PGM and gold.
Marathon has stated the project has the potential to get bigger. It's nearby Geordie Lake deposit has several untapped mineralized zones.
The project plans include building a mineral processing plant, known as a sulphide flotation facility, capable of handling 22,000-tonnes per day.
“The new mine plan has a higher efficiency, which reduced the amount of mining equipment required,” said company president and CEO Phillip Walford in a release. “This superior set of economics sets the stage for our next phase of developing the Marathon Project.”
The study shows the project can generate strong cash flow “under appropriate metal price assumptions.”
The large metal deposit is 10 kilometres north of the town of Marathon that's close to the Trans-Canada Highway. There is also a strong base of local contractors, suppliers and an experienced mining workforce.
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