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Canada’s Marathon Gold (TSX: MOZ) has begun early site works at its proposed Valentine open-pit gold mine in central Newfoundland after satisfying pre-construction environmental assessment conditions.
The project will see full mobilization by early 2023, the first ore to the mill at the end of 2024, and a production ramp-up during the first fiscal quarter of 2025.
The board of Marathon announced in September a formal decision to proceed with construction of the Valentine project. It issued a new cost to completion figure of C$470 million to C$490 million ($340-356m), including early works to be carried out in the fourth quarter.
The estimate compares with the C$305 million ($221m) initial capital cost outlined in the project’s March 2021 feasibility study, which outlined a conventional surface mine with two open pits and 13-year milling operation.
“We have now mobilized our early works program to the Valentine site, based on the receipt of all appropriate permits to allow work to proceed,” CEO Matt Manson said in the statement. “This programme involves the installation of a temporary camp, clearing, grubbing and pad construction for the permanent camp, road and bridge upgrades on our access road from the community of Millertown, and pond dewatering ahead of pre-stripping at the Leprechaun deposit.”
Marathon also said it continues to advance its updated feasibility study for the project, which is expected to take between 18 and 24 months.
Valentine is considered the largest undeveloped gold project in Atlantic Canada. It’s located about 80 km southwest of the communities of Millertown and Buchans.
