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Marathon Gold (TSX: MOZ) is well on track to begin production at its 100%-owned Valentine gold project located in central Newfoundland by the first quarter of 2025. The company began early works on the property last October, followed by major construction mobilization in January.
In an update Thursday, Marathon said the project stood at 27% completion by the end of the first quarter 2023, compared to a plan of 26%, with engineering at 71%, procurement at 51% and construction at 9%.
Capital costs incurred from the start of early works to the end of March were C$64 million, with C$144 million committed (excluding sunk costs incurred prior to October 2022). The project’s cost to complete, including contingency, was estimated at C$463 million at October 31, 2022, and C$403 million at March 31, 2023.
“The first quarter of 2023 represented the first full quarter of principal construction at the Valentine gold project. We are pleased with the progress we have made to date, in particular with mining productivity at the Leprechaun pit and the progress of earthworks at the future process plant site,” Marathon’s CEO Matt Manson stated in a press release.
Manson added that his company is now preparing for the full occupation of its new permanent camp and commencement of concrete foundation work at the mill.
In September, the board of Marathon announced a formal decision to proceed with construction at Valentine, considered the largest undeveloped gold project in Atlantic Canada. Construction began in October.
An updated feasibility study in December 2022 presented a three-pit mine plan for Valentine based on increased gold reserves of 2.7 million ounces and extended mine of of 14.3 years. During that period, it is expected to produce 195,000 ounces of gold per year on average.
Shares of Marathon Gold rose 1.0% by 1:15 p.m. EDT, giving the company a market capitalization of C$383.9 million.
