Marathon FS Excerpt:
Highlights of the FS include after-tax IRR of 31.5% and NPV at a 5% discount rate of US$450M at US$1,500/oz gold, increasing to 42.2% and US$651M at US$1,750/oz gold. After-tax payback is 1.9 years.
The FS assumes a 13-year mine life with average gold production of 173,000 oz/year and 22 months construction and commissioning schedule assuming construction start in January 2022. First gold pour expected in October 2023.
The company said that the FS confirms robust economics for a conventional open pit mining and milling operation at Valentine, with low initial capital cost and high rate of return.
According to the statement, the Valentine gold project is projected to be the largest gold mine in Atlantic Canada, and a major contributor to the socio-economic wellbeing of the Central Newfoundland.