Generation Mining identifies high priority MT drill target within Marathon Deposit Feeder Zone
August 06 2020 - 1:50PM
Generation Mining Limited (TSX:GENM) (“Gen Mining” or the
“Company”) is pleased to announce the preliminary results from its
SPARTAN Magnetotelluric (“MT”) survey over a portion of the
Marathon Deposit resource including the W Horizon and structures to
the west of the deposit which are believed to have provided a
favourable environment for enriched palladium mineralization.
Analysis of the MT data has identified one prospective target which
consists of a discrete, previously undrilled, conductive MT anomaly
situated at a vertical depth of approximately 650 meters downdip
and immediately west of the Marathon Palladium Copper Deposit
(Figure 1). The anomaly is at a depth beyond the depth
penetration capabilities of a preexisting airborne electromagnetic
survey of this area (completed by a previous operator) and most
importantly the anomaly is more conductive than Marathon Palladium
Copper deposit mineralization. Consequently, the anomaly
constitutes a high priority drill target given its coincidence with
the presumed down dip extension of the Marathon Series Gabbros
which constitute the feeder zones to, and are the host of, PGM-Cu
mineralization at the Marathon Deposit.
Of specific interest in the immediate vicinity
of the MT anomaly are extensions to the W Horizon which is
recognized in the scientific literature as a zone of extreme
palladium enrichment.
The magnetotelluric method, typically
abbreviated as MT, is an electromagnetic geophysical technique that
uses natural electric fields from lightning sources, solar flares
and ionospheric resonances that induce current flow in the ground
which may be used to image the earth’s electrical resistivity
structure from surface to great depths. MT data are processed
and presented as resistivities which may be correlated with various
geological features including conductive features which are of
particular interest to the Company at the Marathon Property. MT has
been used successfully on several PGM exploration projects in
Northwestern Ontario.
MT surveys at Marathon which began in mid-June
2020 (see June 17th, 2020 press release) were expanded to include
the Four Dams as well as the Sally and Marathon areas.
Analysis of the Sally and Four Dams results is expected
shortly. Quantec Geoscience Limited crews completed the MT
survey on July 24th on time and on budget and collected a total of
123 deep search geophysical soundings over the three survey
areas. Alan King, P.Geo. Consulting Geophysicist at
Geoscience North provided on going QA/QC of survey results as well
as data imaging and interpretation. Data for the entire
survey is currently being processed and the Company plans to begin
follow up of MT results with a minimum of 5,000 metres of drilling
commencing in August, 2020.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f31e45ca-72ee-423a-bb04-f1baeb23466e
https://www.globenewswire.com/NewsRoom/AttachmentNg/dff074b7-0919-45f3-a070-aa93237cda1c
Figure 1 – MT survey results – Section A-A’
DDH M 19-535 Az 61.3 deg./Dip -72.2 deg. No
economic intersectionDDH M 07-405 Az 95.0 deg./Dip -76.0
deg. True Thickness 82 m Assays by
AccurassayDDH M 19-533 Az 91.9 deg/Dip -64.2
deg. True Thickness 62 m Assays by
ALS Global
Palladium Equivalent Calculation: PdEq = [(Au ppm*USD
41.79594) + (Pt ppm*USD 28.93565) + (Pd ppm*USD 40.1884) +
((Cu%/100*2204.62) *3)]/40.1884
PdEq Formula Data:1 tonne = 2204.62 lbs, 1 troy ounce = 31.1035
grams, 1 oz Au = USD 1300, 1 oz Pt = USD 900, 1 oz Pd = USD
1250, 1 lb Cu = USD 3.00, 1 gm Au = USD 41.79594, 1 gm Pt =
28.93565, 1 gm Pd = USD 40.1884
The Company is well financed for the next phases
of work, including the feasibility study and the restart of the
permitting process, both of which are underway at the Marathon
Palladium Copper Project, with approximately $13.5 million in
cash.
About the Marathon Palladium
Project
Generation Mining has begun a Feasibility Study
on the Marathon Deposit, which is the largest undeveloped platinum
group metal Mineral Resource in North America. The Marathon
Property covers a land package of approximately 22,000 hectares or
220 square kilometres. Gen Mining acquired a 51% interest in
the Marathon Property from Sibanye Stillwater on July 10th, 2019
and can increase its interest to 80% by spending $10 million over a
period of four years. As of Q1, 2020, approximately $4
million of the $10 million has already been spent. Sibanye
Stillwater has certain back-in rights that can bring its interest
in the Property back to 51% after such time Gen Mining has earned
its 80% interest (see the Company’s press release of July 11th,
2019, for more details).
Qualified Person
Rod Thomas, P.Geo., Company Vice-President,
Exploration and a Director has reviewed and approved the scientific
and technical information contained in this news release. Mr.
Thomas is a Qualified Person for the purposes of National
Instrument 43-101 Standards of Disclosure for Mineral Projects.
For further information please contact:
Jamie LevyPresident and Chief ExecutiveOfficer(416)
640-2934(416) 567-2440jlevy@genmining.com
Forward-Looking Information
This news release includes certain information
that may be deemed “forward-looking information” under applicable
securities laws. All statements in this release, other than
statements of historical facts, that address acquisition of the
Property and future work thereon, Mineral Resource and Reserve
potential, exploration activities and events or developments that
the Company expects is forward-looking information. Although the
Company believes the expectations expressed in such statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the statements. There are certain factors
that could cause actual results to differ materially from those in
the forward-looking information. These include the results of the
Company’s due diligence investigations, market prices, exploration
successes, continued availability of capital and financing, and
general economic, market or business conditions.
Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments
may differ materially from those projected in the forward-looking
information. For more information on the Company, investors are
encouraged to review the Company’s public filings at www.sedar.com.
The Company disclaims any intention or obligation to update or
revise any forward- looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
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