Zinc * USD/lb
0.00
RESERVES & RESOURCES
The Mineral Resource Estimate below is for the main Marathon deposit and the Geordie and Sally deposits. The Mineral Resource Estimate was prepared by P&E Mining Consultants Inc.
Constrained Mineral Resource Estimate1-7 for the Marathon, Geordie and Sally Deposits
(effective date June 30, 2020)
|
MINERAL |
TONNAGE |
PD |
CU |
AU |
PT |
AG |
||||||
|
kt |
% |
g/t |
koz |
% |
M lbs |
g/t |
koz |
g/t |
koz |
g/t |
koz |
|
|
Measured |
113,793 |
46 |
0.63 |
2,304 |
0.20 |
502 |
0.07 |
262 |
0.21 |
762 |
1.49 |
5,466 |
|
Indicated |
131,081 |
54 |
0.45 |
1,886 |
0.21 |
599 |
0.06 |
263 |
0.15 |
629 |
1.66 |
6,996 |
|
M&I |
244,874 |
100 |
0.53 |
4,190 |
0.20 |
1,101 |
0.07 |
525 |
0.18 |
1,391 |
1.58 |
12,462 |
|
Inferred |
33,849 |
n/a |
0.40 |
431 |
0.22 |
163 |
0.05 |
55 |
0.10 |
114 |
1.48 |
1,607 |
1 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.
2 Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
3 The Inferred Mineral Resource in this estimate has a lower level of confidence that 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 Contained metal totals may differ due to rounding.
5 Mineral Resources are reported within a constraining pit shell at a NSR cut-off value of $13/t.
6 NSR (C$/t) = (Ag x 0.48) + (Au x 42.14) + (Cu x 73.27) + (Pd x 50.50) + (Pt x 25.07) – 2.62.
7sup> The Mineral Resource Estimate was based on metal prices of US$3.00/lb copper, US$1,500/oz gold, US$18/oz silver, US$1,600 /oz palladium, and US$900/oz platinum.
The Mineral Reserve Estimate was prepared by G Mining Services Inc.
Marathon Project Open Pit Mineral Reserve Estimates1-10
(September 15, 2020)
|
MINERAL |
TONNAGE |
PD |
CU |
AU |
PT |
AG |
||||||
|
kt |
% |
g/t |
koz |
% |
M lbs |
g/t |
koz |
g/t |
koz |
g/t |
koz |
|
|
Proven |
85,091 |
72% |
0.660 |
1,805 |
0.202 |
379 |
0.070 |
191 |
0.212 |
581 |
1.359 |
3,719 |
|
Probable |
32,610 |
28% |
0.512 |
537 |
0.213 |
153 |
0.061 |
64 |
0.168 |
176 |
1.541 |
1,616 |
|
P&P |
117,701 |
100% |
0.619 |
2,342 |
0.205 |
532 |
0.067 |
255 |
0.200 |
756 |
1.410 |
5,334 |
1 CIM definitions were followed for Mineral Reserves.
2 Effective date of the estimate is September 15, 2020.
3 Mineral Reserves are estimated at a cut-off grade varying from $18.00 to $21.33 NSR/t of ore.
4 Mineral Reserves are estimated using the following long-term metal prices (Pd = US$1,500/oz, Pt = US$900/oz, Cu = US$2.75/lb,
Au = US$1,300/oz and Ag = US$16/oz) and an exchange rate of US$ / $ 0.75).
5 A minimum mining width of 5 m was used.
6 Bulk density of ore is variable and averages 3.07 t/m3.
7 The average strip ratio is 2.8:1.
8 The average mining dilution factor is 9%.
9 Numbers may not add due to rounding.
10 The Geordie and Sally deposits are resources and are not included in the reserves nor economic evaluation for the Project.
OPEX & CAPEX
Key Results and Assumptions
|
PRICE ASSUMPTIONS |
UNITS |
|
|
Palladium |
US$/oz |
$1,725 |
|
Copper |
US$/lb |
$3.20 |
|
Platinum |
US$/oz |
$1,000 |
|
Gold |
US$/oz |
$1,400 |
|
Silver |
US$/oz |
$20.00 |
|
Exchange Rate |
C$/US$ |
1.28 |
|
Diesel Fuel |
$/L |
0.77 |
|
Electricity |
$/kWhr |
0.08 |
|
OPERATING DATA |
UNITS |
PRE-PRODUCTION |
OPERATIONS |
TOTAL |
|
Mine life |
years |
2 |
12.6 |
14.6 |
|
Total Milled Tonnes |
Mt |
1.9 |
115.8 |
117.7 |
|
Total Mined Tonnes |
Mt |
25.4 |
421.8 |
447 |
|
Strip Ratio |
waste:ore |
3.33 |
2.77 |
2.80 |
|
METAL PRODUCTION1 |
UNITS |
RECOVERED METALS |
PAYABLEMETAL |
% OF REVENUE |
|
Palladium |
k oz |
2,028 |
1,905 |
58.7% |
|
Copper |
Mlbs |
493 |
467 |
26.8% |
|
Platinum |
k oz |
634 |
537 |
9.6% |
|
Gold |
k oz |
183 |
151 |
3.8% |
|
Silver |
k oz |
3,796 |
2,823 |
1.0% |
1 LOM metal production including pre-production period
|
CAPITAL COSTS |
UNITS |
|
|
Initial Capital1 |
$M |
665 |
|
LOM Sustaining Capital |
$M |
423 |
|
LOM Total Capital |
$M |
1,087 |
|
Closure Costs |
$M |
66 |
1 Initial Capital shown after equipment financing. Contingency at approximately 11.7% of initial Capital
|
OPERATING COSTS |
UNITS |
|
|
Mining2 |
$/t mined |
2.53 |
|
Processing |
$/t milled |
9.08 |
|
General & Administration |
$/t milled |
2.48 |
|
Transport & Refining Charges |
$/t milled |
2.80 |
|
Royalties |
$/t milled |
0.03 |
|
Total Operating Costs |
$/t milled |
23.63 |
|
LOM Average Operating Cost |
US$/oz Pd Eq |
687 |
|
LOM Average AISC |
US$/oz Pd Eq |
809 |
Refer to Non-IFRS Financial Measures in the Disclaimer on Page 3 of this presentation
2 Mining cost also noted as $9.23/tonne milled
FINANCIAL ANALYSIS
Key Results and Assumptions
|
PRICE ASSUMPTIONS |
UNITS |
|
|
Palladium |
US$/oz |
$1,725 |
|
Copper |
US$/lb |
$3.20 |
|
Platinum |
US$/oz |
$1,000 |
|
Gold |
US$/oz |
$1,400 |
|
Silver |
US$/oz |
$20.00 |
|
Exchange Rate |
C$/US$ |
1.28 |
|
Diesel Fuel |
$/L |
0.77 |
|
Electricity |
$/kWhr |
0.08 |
|
PALLADIUM PRICE (US$/oz) |
1,000 |
1,250 |
1,500 |
1,725 |
1,850 |
2,000 |
2,500 |
|
NPV 6% (C$ M) |
356 |
601 |
847 |
1,068 |
1,190 |
1,337 |
1,831 |
|
Payback (years) |
4.3 |
3.2 |
2.6 |
2.3 |
2.1 |
2.0 |
1.6 |
|
IRR (%) |
14.8% |
20.2% |
25.3% |
29.7% |
32.1% |
34.8% |
43.7% |
|
COPPER PRICE (US$/lb) |
2.00 |
2.50 |
3.00 |
3.20 |
3.50 |
4.00 |
4.50 |
|
NPV 6% ($ M) |
792 |
907 |
1,022 |
1,068 |
1,137 |
1,251 |
1,365 |
|
Payback (years) |
2.7 |
2.5 |
2.3 |
2.3 |
2.2 |
2.1 |
2.0 |
|
IRR % |
24.7% |
26.8% |
28.9% |
29.7% |
30.9% |
32.9% |
34.8% |
|
AFTER-TAX RESULTS |
OPEX SENSITIVITY |
||||
|
-20% |
-15% |
0% |
15% |
20% |
|
|
NPV 6% (C$ M) |
1,270 |
1,220 |
1,068 |
916 |
866 |
|
Payback (years) |
2.1 |
2.1 |
2.3 |
2.4 |
2.5 |
|
IRR (%) |
33.0% |
32.2% |
29.7% |
27.1% |
26.2% |
|
AFTER-TAX RESULTS |
CAPEX SENSITIVITY |
||||
|
-20% |
-15% |
0% |
15% |
20% |
|
|
NPV 6% (C$ M) |
1,195 |
1,163 |
1,068 |
972 |
940 |
|
Payback (years) |
1.9 |
2.0 |
2.3 |
2.6 |
2.7 |
|
IRR (%) |
37.7% |
35.4% |
29.7% |
25.3% |
24.1% |
Project Cash Flow (After Tax)
PRODUCTION
