Marathon makes construction decision for Valentine gold project and raises capital expenditure estimate

Marathon makes construction decision for Valentine gold project and raises capital expenditure estimate
Marathon makes construction decision for Valentine gold project and raises capital expenditure estimate

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(Kitco News) – On Thursday, Marathon Gold (TSX:MOZ) announced that its board of directors had made a formal decision to proceed with construction of the Valentine gold project located in central Newfoundland and Labrador.

According to a press release, this decision was made following the recent successful completion of provincial and federal environmental assessments of the project, an update of the cost to complete the assessment and an assessment of the investment merits. overall project.

Marathon said that with the project schedule confirmed, the company is able to provide guidance on the capital cost estimate for the project, adding that it currently estimates a cost to complete of between C$470 million and C$490 million. .

Compared to the initial capital cost of C$305 million contained in the Feasibility Study (FS) of the April 2021 project, the new valuation incorporates approximately 20 months of market inflation as well as the reallocation of previously qualified costs of sustaining investment items in the initial immobilization period, it said.

The company also noted that the new valuation also incorporates certain scope changes related, primarily, to updated staffing levels and the impact of moving from the 22-month construction schedule contained in the FS to the current construction schedule. of 28 months.

The cost estimate is effective as of August 2022 and includes current market offers, contract prices, finalized equipment rental agreements and current market data for labor and consumables, including diesel. Pre-development and owner costs incurred until the end of July 2022 are excluded.

Marathon is a Toronto-based gold company advancing its 100% owned Valentine Gold Project located in central Newfoundland and Labrador, one of the world’s leading mining jurisdictions.

The project comprises a series of five mineralized deposits along a 20 kilometer system. An April 2021 feasibility study described a surface mining and conventional milling operation over a thirteen-year lifespan with an after-tax rate of return of 31.5%.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

. Marathon takes a decision construction for gold project Valentine increases the estimate of expenditure investment

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