News out:
Generation Mining Reaches Community Benefits Agreement with Biigtigong Nishnaabeg https://ceo.ca/@businesswire/generation-mining-reaches-community-benefits-agreement Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining” or the “Company”) announces that Biigtigong Nishnaabeg (“BN”) has approved a Community Benefits Agreement (“CBA”) in respect of the Marathon Palladium Copper Project (the “Project”) owned by the Company’s wholly-owned subsidiary, Generation PGM Inc. (“Generation PGM”).
The CBA between Generation PGM and BN, which was ratified through a BN membership vote completed on November 12, 2022, describes the benefits the BN community will receive from the Project and details how the Project’s impacts on the community will be mitigated. It includes commitments from the Company regarding environmental management, employment, training and education, business opportunities, social and cultural support, and financial participation.
Commenting on the CBA Jamie Levy, the President and CEO said, “We are pleased to have reached an agreement with BN as we advance the Marathon Palladium Copper Project to construction and production. We will work closely with them to ensure benefits accrue to BN in the form of employment and training opportunities, financial participation, and business and contracting opportunities, all while maintaining a shared focus on environmental protections for the Biigtig Zibi (Pic River) and other areas that may be impacted by the Project.”
Chief Duncan Michano of BN said, “This is a very significant milestone in our relationship with the Company. The Project is on the Exclusive Aboriginal title territory of Biigtigong Nishnaabeg, and the CBA reflects the strong partnership between Generation PGM and Biigtigong Nishnaabeg. We encourage other companies who seek to work on our territory to follow the Generation PGM example in consulting with us at all stages of project development. This Project has the support of myself and our Band Council, as well as our community which approved the CBA through a recently completed ratification vote, and we look forward to working with Generation PGM as they develop the Project and bring it into operation.”
The next steps in the Project are to receive the Federal and Provincial decisions on the environmental assessment (the “EA”) which are expected by November 30, 2022. Following the EA decisions, the Company will apply for the required permits and implement the follow-up programs and monitoring measures which were identified as part of the EA process. The Company is planning to commence construction in 2023 once regulatory permits and approvals are received.
About the Company
Gen Mining’s focus is the development of the Marathon Project, a large undeveloped palladium-copper 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%. Upfront capital costs were estimated at 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. Over the 13-year mine life the Marathon Project is estimated to produce 1,905,000 ounces of palladium, 467 million lbs of copper, 537,000 ounces of platinum, 151,000 ounces of gold and 2,823,000 ounces of silver. For more information, please review the detailed Feasibility Study dated March 25, 2021, filed under the Company’s profile at SEDAR.com.
On August 2, 2022, the Joint Review Panel issued its Environmental Impact Statement Report to the Federal and Provincial Ministers of the Environment. Final Ministerial decisions in the Environmental Assessment process are expected to be delivered on or before November 30, 2022. Upon receipt of favourable decisions from the Ministers and the required permits, the Company anticipates starting construction late in the first quarter of 2023.
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.