Zinc * USD/lb
0.00
Lead * USD/lb
0.00
Moly * USD/lb
0.00

Feasibility Study

Click here to access the 2023 Feasibility Study Update

KEY RESULTS AND ASSUMPTIONS;

Key results and assumptions for the updated Feasibility Study are summarized below.

 

Units

2023 FS

2021 FS

Production Data

Mine Life (operating)

years

12.5

12.8

Average Process Plant Throughput

tpd

 27,700

 25,200

Average Process Plant Throughput

Mt/year

 10.1

 9.2

Average Mining Rate

tpd

115,000

 110,000

Average Mining Rate

Mt/year

 42

 40

Total Ore Mined

Mt

127

118

Strip Ratio

waste:ore

2.63 

2.80

Palladium (payable)

k oz

2,122

1,905

Copper (payable)

M lbs

517

467

Platinum (payable)

k oz

485

537

Gold (payable)

k oz

158

151

Silver (payable)

k oz

3,156

2,823

LOM Palladium Equivalent Payable

PdEq. koz

3,613

3,195

Average Annual Palladium – Payable Metal

k oz

166

149

Average Annual Copper – Payable Metal

M lbs

41

36

Average Annual Platinum – Payable Metal

k oz

38

41

Average Annual Gold – Payable Metal

k oz

12

12

Average Annual Silver – Payable Metal

k oz

248

220

Operating Costs (Average LOM)

Mining (a)

$/t mined

3.25

2.53

Mining

$/t milled

11.45

9.23

Processing

$/t milled

8.70

9.08

G&Ab

$/t milled

2.67

2.48

Transport & Refining Charges

$/t milled

4.13

2.80

Royalty

$/t milled

0.09

0.04

Total Operating Cost

$/t milled

27.04

23.63

LOM Average Operating Costs

US$/oz PdEq

709

687

LOM Average AISCc

US$/oz PdEq

813

809

Capital Costs

Initial Capital

$M

1,112

888

Less:

 

 

 

Pre-commercial production revenue

$M

($156)

($171)

Leased equipment, net of lease payments during construction

 

$M

 

($58)

 

($53)

Initial Capital (Adjusted)

$M

898

665

LOM Sustaining Capital

$M

424

423

Closure Costs

$M

72

66

Financial Evaluation 

Pre-Tax Cash Flow (undiscounted)

$M

3,387

3,004

Pre-Tax NPV6%

$M

1,798

1,636

Pre-Tax IRR

%

31.9

38.6

Payback

years

2.0

1.9

Net Cash Flow (undiscounted)

$M

2,285

2,060

After-Tax NPV6%

$M

1,164

1,068

After-Tax IRR

%

25.8

29.7

Payback

years

2.3

 2.3

Key Assumptions (d)

Palladium Price

US$/oz

$1,800

$1,725

Copper Price

US$/lb

$3.70

$3.20

Platinum Price

US$/oz

$1,000

$1,000

Gold Price

US$/oz

$1,800

$1,400

Silver Price

US$/oz

$22.50

$20.00

Foreign Exchange (“FX”)

C$:US$

1.35

1.28

Diesel Price

$/litre

1.17

0.77

Electricity

$/kWhr

0.07

0.08

Notes:

  1. Including capitalized maintenance parts.
  2. Includes estimated costs associated with certain commitments to and agreements with Indigenous communities.
  3. AISC is calculated without the impact of the Precious Metal Purchase Agreement with Wheaton Precious Metals Corp. (“WPM PMPA”).
  4. Metal Price Assumptions are based on the lesser of the three-year trailing average and the spot price on December 31, 2022, rounded to nearest interval.

PROJECT CASH FLOW (After Tax)

PRODUCTION

Palladium (Payable metal)

Copper (Payable Metal)

RESOURCES & RESERVES

The Mineral Resource Estimate below is for the combined Marathon, Geordie and Sally deposits. The Mineral Resource Estimates for Geordie and Sally were prepared by P&E Mining Consultants Inc. (“P&E”). The Mineral Resource Estimate for Marathon was prepared by Gen Mining and reviewed by P&E. 

Pit Constrained Combined Mineral Resource Estimatea-j for the Marathon, Geordie and Sally Deposits
(Effective date December 31, 2022)

Mineral
Resource

Classification

Tonnes

Pd

Cu

Pt

Au

Ag

k

g/t

koz

%

M lbs

g/t

koz

g/t

koz

g/t

koz

Marathon Deposit

Measured

158,682

0.60

3,077

0.20

712

0.19

995

0.07

359

1.75

8,939

Indicated

29,905

0.43

412

0.19

124

0.14

136

0.06

59

1.64

1,575

Meas. + Ind.

188,587

0.58

3,489

0.20

836

0.19

1131

0.07

418

1.73

10,514

Inferred

1,662

0.37

20

0.16

6

0.14

7

0.07

4

1.25

67

Geordie Deposit

Indicated

17,268

0.56

312

0.35

133

0.04

20

0.05

25

2.4

1,351

Inferred

12,899

0.51

212

0.28

80

0.03

12

0.03

14

2.4

982

Sally Deposit

Indicated

24,801

0.35

278

0.17

93

0.2

160

0.07

56

0.7

567

Inferred

14,019

0.28

124

0.19

57

0.15

70

0.05

24

0.6

280

Total Project

Measured

158,682

0.60

3,077

0.20

712

0.19

995

0.07

359

1.75

8,939

Indicated

71,974

0.43

1,002

0.22

350

0.14

316

0.06

140

1.5

3,493

Meas. + Ind.

230,656

0.55

4,079

0.21

1,062

0.18

1,311

0.07

499

1.67

12,432

Inferred

28,580

0.39

356

0.23

143

0.1

89

0.04

42

1.45

1,329

Notes:

  1. Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
  3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
  4. The Marathon Mineral Resource is reported within a constrained pit shell at a NSR cut-off value of $15/t.
  5. Marathon NSR (C$t) = (Cu % x 88.72) + (Ag g/t x 0.47) + (Au g/t x 44.69) + (Pd g/t x 58.63) + (Pt g/t x 28.54) - 3.37.
  6. The Marathon Mineral Resource estimate was based on metal prices of US$1,800/oz Pd, US$3.50/lb Cu, US$1,000/oz Pt, US$1,600/oz Au and US$20/oz Ag and an exchange rate of 1.30C$ to 1 US$.
  7. The Sally and Geordie Mineral Resources are reported within a constraining pit shell at a NSR cut-off value of $13/t.
  8. Sally and Geordie NSR (C$/t) = (Ag g/t x 0.48) + (Au g/t x 42.14) + (Cu % x 73.27) + (Pd g/t x 50.50) + (Pt g/t x 25.07) – 2.62.
  9. The Sally and Geordie Mineral Resource estimates were based on metal prices of. US$1,600/oz Pd, US$3.00/lb Cu, US$900/oz Pt, US$1,500/oz Au and US$18/oz Ag.
  10. Contained metal totals may differ due to rounding.

 

 

The Mineral Reserve estimate for the Project includes only the Marathon Deposit. The Mineral Reserve Estimate was prepared by G Mining Services Inc. 

Marathon Project Open Pit Mineral Reserve Estimatesa-i
(Effective Date of December 31, 2022)

Mineral Reserves

Tonnes

Pd

Cu

Pt

Au

Ag

kt

g/t

koz

%

M lb

g/t

koz

g/t

koz

g/t

koz

Proven

114,798

0.65

2,382

0.21

530

0.20

744

0.07

259

1.68

6,191

Probable

12,863

0.47

193

0.20

55

0.15

61

0.06

26

1.53

635

P & P

127,662

0.63

2,575

0.21

586

0.20

806

0.07

285

1.66

6,825

Note:

  1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014) definitions) were used for Mineral Reserve classification.
  2. Mineral Reserve Estimate completed by Alexandre Dorval, P.Eng., of GMS, an independent QP, as defined by NI 43-101.
  3. Mineral Reserves were estimated at a cut-off value $16.90 NSR/t of ore.
  4. Mineral Reserves were estimated using the following long-term metal prices: Pd = US$1,500/oz, Pt = US$1,000/oz, Cu = US$3.50/lb, Au = US$1,600/oz and Ag = US$20/oz, and an exchange rate of 1.30C$ to 1 US$. The pit designs are based on a pit shell selected at a revenue factor of 0.74.
  5. A minimum mining width of 5 m was used.
  6. Bulk density of ore is variable and averages 3.1 t/m3.
  7. The average strip ratio is 2.6:1.
  8. The average mining dilution factor is 9%.
  9. Numbers may not add due to rounding.

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