Generation Mining Limited (TSX:GENM) ("Gen Mining" or the
"Company") announces that it has signed a contract with Boart
Longyear Canada for up to 8,000 metres of exploration drilling on a
number of high-prospectivity copper targets north and west of its
Marathon Palladium-Copper Project in Northwestern Ontario. Two
phases of drilling as well as numerous field programs are planned.
The winter program is focused on the Biiwobik prospect, which sits
just north of the Marathon Palladium-Copper deposit and the summer
drill program includes the Four Dams and Sally targets.
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Figure 1 – Map of Marathon Palladium
project showing locations of 2024 exploration programs. (Graphic:
Business Wire)
The drill and crew have mobilized to site and drilling has
commenced. The aim of the first hole at Biiwobik is to better
define the extent of the Powerline and Chonolith domains which will
aid in determining the potential to expand the Marathon
Palladium-Copper deposit or develop a fourth pit increasing the
life of the mine beyond 13.5 years.
The winter phase of the program will comprise approximately
3,000 metres and is designed to potentially extend the northern
Marathon Pit, targeting an area adjacent to the north pit and
extending 400 metres to the north. Highlights from the 2021 drill
program (see news release dated September 2, 2021) include drill
intercepts* of 46 metres grading 0.46% copper, 1.01 g/t palladium,
0.11 g/t gold and 0.17 g/t platinum starting at a depth 50 metres
(Figures 1 and 2). These holes were drilled to follow up a 2006
hole which returned 100.5 metres grading 0.58% copper, 0.93 g/t
palladium, 0.1 g/t gold and 0.25 g/t platinum, starting at a depth
of 215.8 metres. The 2024 drilling is designed to test the downdip
and along strike extension of mineralization to better define the
upside potential of the Biiwobik prospect.
The summer phase of the program will comprise approximately
2,000 metres of exploration drilling at the Four Dams prospect and
1,000 metres at the Sally deposit.
The Four Dams prospect (Figure 3) hosts an approximately
250-metre-wide by 60-metre-thick ultramafic pipe which contains
abundant higher density minerals such as olivine and apatite along
with semi-massive to massive sulphides occurring at its base. The
concentration of these higher density minerals as well as massive
sulphides is interpreted to be the result of gravity driven
accumulation of heavier minerals which often leads to the pooling
of larger massive sulphide bodies at depth. A combination of
down-dip drilling and borehole electromagnetic surveying will be
used to vector towards these bodies. The last drill program
targeting the main Four Dams pipe occurred between 2005-2006 with
results including 0.56% copper over 62.2 metres, 0.38% copper over
100.05 metres and 0.35% copper of 73.5 metres. The pipe has only
been drilled to a vertical depth of 200 metres and remains open at
depth.
A second target will be drilled approximately 275 metres
southeast of the main pipe, where three holes drilled between 2013
and 2017 encountered similar rock units that make up the main Four
Dams pipe, with the best results being 0.27% copper over 64 metres.
Borehole electromagnetic surveys carried out in 2017 and a
subsequent magnetotelluric survey completed in 2020 both indicate
the presence of an untested conductor immediately down dip from
this intercept, which will be a focus of the 2024 drill
program.
Drilling at the Sally Deposit (Figure 4) will utilize a
helicopter portable drill rig and consist of a single hole
totalling approximately 1000 metres. This hole will follow up on
the successful drill program carried out by Gen Mining in 2019 (see
news release dated December 17, 2019). A subsequent borehole
electromagnetic survey at the end of 2019 and magnetotelluric
survey in 2020 both indicate the presence of a large untested
conductor just below the 2019 intercept. This conductor occurs
along the same geological horizon which hosts extremely high-grade
outcrop samples with grades up to 9.11% copper, 185 g/t palladium.
2.83 g/t gold and 0.45 g/t platinum.
Additional surficial field programs are planned at Sally as well
as the region between the Sally and Geordie deposits, where mapping
and sampling by past operators has indicated the potential for
economic copper mineralization (Figure 1).
The company has also engaged ALS Goldspot to carry out a 2D
prospectivity analysis of the Company’s entire exploration land
package. This project is the culmination of over four years of data
compilation by Gen Mining and will include over 60 years of
exploration data from various past operators. Gen Mining will work
closely with Goldspot’s team of geologists, geophysicists and
geochemists to prepare the data for analysis using their
proprietary artificial intelligence (AI) and machine learning
technology. Results from this program will help to guide
exploration programs in 2024 and beyond. Pending results, a 3D
analysis will be carried out following the 2024 drill program to
better define prospective targets at depth.
Gen Mining’s CEO Jamie Levy stated, “We are excited to follow up
on the positive drill results from the summer 2021 program to
better understand our land package and its potential to contain
copper rich deposits.”
* drill intercepts lengths approximate true widths
*Metal prices of US$1500/oz Pd, US$3.20/lb Cu, US$1100/oz Pt,
and US$1800/oz Au used for CuEq calculations
About Generation Mining Limited
Gen Mining’s focus is the development of the Marathon Project, a
large undeveloped palladium-copper deposit in Northwestern Ontario,
Canada. The Company released the results of the Feasibility Study
Update on March 31, 2023.
The Feasibility Study Update estimated a Net Present Value
(using a 6% discount rate) of C$1.16 billion, an Internal Rate of
Return of 25.8%, and a 2.3-year payback. The mine is expected to
produce an average of 166,000 ounces of payable palladium and 41
million pounds of payable copper per year over a 13-year mine life
(“LOM”). Over the LOM, the Marathon Project is anticipated to
produce 2,122,000 ounces of palladium, 517 million lbs of copper,
485,000 ounces of platinum, 158,000 ounces of gold and 3,156,000
ounces of silver in payable metals. For more information, please
review the Feasibility Study Update dated March 31, 2023, filed
under the Company’s profile at www.sedarplus.com or on the
Company’s website at
https://genmining.com/projects/feasibility-study/.
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.
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.
Forward-Looking Information
This news release contains certain forward-looking information
and forward-looking statements, as defined in applicable securities
laws (collectively referred to herein as "forward-looking
statements"). Forward-looking statements reflect current
expectations or beliefs regarding future events or the Company’s
future performance. All statements other than statements of
historical fact are forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "continues", "forecasts", "projects”,
“predicts”, “intends”, “anticipates”, “targets” or “believes”, or
variations of, or the negatives of, such words and phrases or state
that certain actions, events or results “may”, “could”, “would”,
“should”, “might” or “will” be taken, occur or be achieved,
including statements relating to the final location and depth of
drill holes, surveys and targets; the life of mine; mineral
production estimates; payback period; and financial returns from
the Marathon Project.
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 the timing for a construction decision;
the progress of development at the Marathon Project, including
progress of project expenditures and contracting processes, the
Company’s plans and expectations with respect to liquidity
management, continued availability of capital and financing, the
future price of palladium and other commodities, permitting
timelines, exchange rates and currency fluctuations, increases in
costs, requirements for additional capital, and the Company’s
decisions with respect to capital allocation, and the impact of
COVID-19, inflation, global supply chain disruptions, global
conflicts, including the wars in Ukraine and Israel, the project
schedule for the Marathon Project, key inputs, staffing and
contractors, commodity price volatility, continued availability of
capital and financing, uncertainties involved in interpreting
geological data, environmental compliance and changes in
environmental legislation and regulation, the Company’s
relationships with First Nations communities, results from planned
exploration and drilling activities, local access conditions for
drilling, and general economic, market or business conditions, as
well as those risk factors set out in the Company’s annual
information form for the year ended December 31, 2022, and in the
continuous disclosure documents filed by the Company on SEDAR+ at
www.sedarplus.ca. Readers are cautioned that the foregoing list of
factors is not exhaustive of the factors that may affect
forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The forward-looking
statements in this news release speak only as of the date of this
news release or as of the date or dates specified in such
statements.
Forward-looking statements are based on a number of assumptions
which may prove to be incorrect, including, but not limited to,
assumptions relating to: the availability of financing for the
Company’s operations; operating and capital costs; results of
operations; the mine development and production schedule and
related costs; the supply and demand for, and the level and
volatility of commodity prices; timing of the receipt of regulatory
and governmental approvals for development projects and other
operations; the accuracy of Mineral Reserve and Mineral Resource
Estimates, production estimates and capital and operating cost
estimates; and general business and economic 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 on SEDAR+ at
www.sedarplus.ca. 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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Jamie Levy President and Chief Executive Officer (416) 640-2934
(O) (416) 567-2440 (M) jlevy@genmining.com
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