TD updateMarathon Gold Corp. (MOZ-T) C$3.05 Additional Berry Results Arun Lamba, CFA Event This morning, Marathon reported results from recent drilling at its Valentine Gold Project (100%) in central Newfoundland. Today's results represent data from 14 drill holes located within the 1.5 kilometre long Berry Zone.
Impact: NEUTRAL The results released today represent additional intercepts both from within or adjacent to the Berry Zone infill drilling area (10 holes) and from the Frozen Ear Pond Road (four holes).
Highlights — VL-20-927: 4.67 g/t over 34m; VL-20-932: 3.51 g/t over 13m; and VL-20-926: 2.53 g/t over 16m. Results from the final 15 holes (2.9 km) drilled in 2020 are expected to be released shortly. A maiden resource estimate for Berry is expected toward the end of Q1/21. Details of the company's 2021 exploration program will be released prior to the end of January (program is expected to be similar to last year; ~50 km).
Valentine Resources (January 2020) — Currently total over 4 Moz (72 Mt at ~1.8 g/t) in all categories on four gold deposits, with the Leprechaun and Marathon deposits being the largest (94% of Resources).
As a reminder, the April 2020 Pre-Feasibility Study contemplated a 6.8 ktpd mine (increasing to 11 ktpd in year 4), with average annual gold production of ~145 koz (175 koz/year over the first nine years) at AISC of US$739/oz over a 12-year life. Initial capex was estimated at $272mm, post-tax IRR at 36%, and payback at 1.8 years (at US$1,350/oz). We estimate that the company has ~$58.7mm in cash.
As a reminder, in Q4/20, Pierre Lassonde (co-founded Franco-Nevada) had agreed to make a strategic investment of $7.5mm in the company via a nonbrokered private placement.
We continue to view Marathon as having an attractive project for the company to bring to production on its own, or to be acquired once permitted.
Anticipated Timeline
Exploration Results — Ongoing
Valentine Feasibility Study — late-Q1/21E
Berry Maiden Resource — late-Q1/21E
Main Permit — Q4/21E