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Marathon Gold (TSX: MOZ) says that the addition of the Berry open pit at its Valentine gold project in central Newfoundland would not require a new impact assessment at the federal level, placing the Berry complex on well track to pass its review process before 2025 production.
On Wednesday, the company received confirmation from the Impact Assessment Agency of Canada (IAAC) that changes to the Valentine gold project to accommodate an open pit and associated infrastructure at the Berry deposit do not constitute a “new designated project,” so a new impact assessment under the Impact Assessment Act (IAA) is not required.
This means that the assessment and subsequent permitting of the Berry complex can proceed as previously anticipated, comprising an environmental assessment (EA) by the provincial regulator and a modified decision statement by the federal regulator.
Consistent with previous guidance and the project’s updated feasibility study, Marathon anticipates these review processes will be completed during 2023 and 2024, well in advance of the scheduled commencement of mining at Berry in the second quarter of 2025.
In September 2020, Marathon submitted an environmental impact statement (EIS) for the Valentine project to the IAAC and the Newfoundland and Labrador Department of Environment and Climate Change (NLDECC) pursuant to the requirements of the Canadian Environmental Assessment Act and the Newfoundland and Labrador Environmental Protection Act, respectively.
The scope of assessment for the EIS included two mining pits and related infrastructure (the Marathon and Leprechaun complexes), a processing plant, a tailings management facility, and associated site facilities.
The Valentine project was released from the provincial EA process on March 17, 2022, and the federal EA process on August 24, 2022, as announced by Marathon previously.
Mine construction started in October 2022, and permitting for specific site activities has continued throughout the mine development process in accordance with the construction schedule. At the end of June 30, 2023, overall permitting progress stood at 89% complete, the company said.
In December 2022, Marathon released results of an updated feasibility study for Valentine based on the addition of a third open pit and associated infrastructure at the Berry complex. Marathon filed EA registration materials for Berry to the NLDECC and IAAC on August 11, following the completion of an effects assessment and consultation with regulators, Indigenous groups, communities, and stakeholder organizations.
Provincially, the addition of Berry complex is considered a “new undertaking”, requiring a provincial EA. This EA has now commenced with the filing of registration materials.
Federally, and as now confirmed by IAAC, the addition of the Berry complex is considered a “change to the designated project” referenced in the August 2022 decision statement of the Minister of Environment and Climate Change Canada, and potential amendments to the decision statement could be considered.
However, IAAC has informed Marathon that the Minister is not permitted to amend the decision statement to change the decision itself, and no new impact assessment under the terms of IAA will be required.
According to Marathon, the addition of Berry deposit would significantly improve the Valentine project’s projected production profile. The company is forecasting 195,000 oz. of annual production over 12 years, compared with 179,000 oz. over nine years previously.
