Generation Mining Reports Significant Increase in PGM, Copper Recovery
August 20 2020 - 7:00AM
Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining”
or the “Company”) is pleased to report an update to its work
program on the Marathon Palladium project in northwestern Ontario
(the “Marathon Project”). The Company has successfully completed
bench-scale metallurgical test work, resulting in a favourable and
significant increase to projected Platinum Group Metals (“PGM”) and
Copper (“Cu”) recovery. Expected increases in metal recovery will
be included in the feasibility study work.
Metallurgical testing commenced at SGS Canada Inc. in Lakefield,
Ontario in June 2020 for the Feasibility Study that is currently
underway. The 2020 Phase 1 Metallurgical Testing program is being
overseen by Steve Haggarty, P.Eng., of Haggarty Technical Services
(“HTS”) and Ausenco Engineering Canada Inc. (“Ausenco”) (who will
be the Qualified Person for the upcoming metallurgical and
processing sections of the Feasibility Study Technical Report). The
Phase 1 Metallurgical Testing program achieved the following
results:
2020 Phase 1 Metallurgical Recovery 1(as
determined by SGS-Lakefield 2020 Met Testing Program - Phase
1) |
PEA2 Metallurgical Recovery |
Variance+ positive - negative |
Palladium |
86.9% |
82.9% |
+4.0% |
Copper |
93.0% |
90.0%3 |
+3.0% |
Platinum |
84.2% |
74.5% |
+9.7% |
Gold |
72.4% |
73.2% |
-0.8% |
Silver |
Not evaluated in this program |
71.5% |
n/a |
1 Recovery calculations are based on the established head grade of
composite samples ranging in Cu, Pd, Pt, and Au head grade and
involving multiple benchscale flotation tests. 2 Preliminary
Economic Assessment (“PEA”) of the Company titled “Amended
Technical Report, Updated Mineral Resource Estimate and Preliminary
Economic Assessment of the Marathon Deposit, Thunder Bay Mining
District Northwestern Ontario Canada” dated July 6, 2020 (effective
date of January 6, 2020); 3 The estimated recovery of Cu is noted
per the PEA for years 6-14 |
The goal for Phase 1 Metallurgical Testing was to improve
overall metal recovery relative to the PEA and validate changes
considered to the process flowsheet relative to previous concepts
considered for the project. The 2020 Phase 1 Metallurgical Testing
program focused on three main aspects:
- Pursue improved metal recovery with optimization of rougher
flotation feed grind size, flotation reagents, and the
implementation of a PGM Scavenger circuit;
- Reduction in the initial capital cost of the concentrator by
evaluating state-of-the-art flotation technology such as the
Woodgrove Direct Flotation Reactor (DFR) technology;
- Improved flotation circuit operability with improved control
and management of rejected pyrite and pyrrhotite.
Samples used for the Phase 1 Metallurgical Testing consisted of
contiguous, discrete intervals selected from 2019 diamond drill
core making up three composites from the South pit (the
W-Horizon), five composites from the Main zone and a previously
preserved 2012 composite from the Main Zone referenced as
“Composite 3”. Composites from recent 2019 drilling were selected
to provide a range in Cu, Pd, Pt and Au head grade with a past to
present comparison using the 2012 Composite 3 to provide updated
estimates for recovery that will be applied in the Feasibility
Study.
Jamie Levy, President and Chief Executive Officer of Gen Mining,
commented: “We are extremely pleased with the Phase 1 Metallurgical
Testing program. A 4% improvement in recovery for Palladium, a 3%
improvement for Copper, and a 10% recovery for Platinum is a direct
financial benefit to the Marathon Project. The test program also
considered the inclusion of the innovative Woodgrove DFR technology
in process plant design which will assist in decreasing constructed
capital costs when compared to the implementation of conventional
technology.”
A Phase 2 metallurgical testing program with a pilot plant at
SGS-Lakefield has now commenced. The Phase 2 metallurgical testing
will be done on bulk samples recently extracted from the Main Zone
and W-Horizon, in addition to the preserved Composite 3. The intent
of Phase 2 pilot plant testing is to fully validate the flowsheet,
produce a final concentrate that will assist with concentrate
marketing and allow for increased confidence on the operability of
the plant. This phase of the project is not needed for compliance
with NI43-101 regulations but is intended to advance efforts for
post-feasibility study development. The Phase 2 metallurgical work
will continue into Q4 2020 and is not expected to delay the
progress of the Feasibility Study or project design.
About the Company
Gen Mining’s focus is the development of the Marathon Project,
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 Project from Sibanye
Stillwater on July 10, 2019 and can increase its interest to 80% by
spending $10 million over a period of four years. As at the end of
Q2 2020, approximately $5.7 million of the $10 million has been
spent. Sibanye Stillwater has certain back-in rights that allow it
to increase its interest in the Marathon Project back up to 51% in
certain circumstances and subject to certain conditions after such
time as Gen Mining has earned its 80% interest (see the Company’s
press release of July 11, 2019 for more details).
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.”
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 the ability of the Company and
Sibanye Stillwater to vary their respective participating interests
in the Marathon Project, Mineral Resource and Reserve potential,
exploration activities and events or developments that the Company
expects are forward-looking information. Although the Company
believes that 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, among other
factors, market prices, exploration and development 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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