• PALLADIUM:
  • USD $/oz | /oz
  • TSX: GENM
  • CAD $1.00
Zinc * USD/lb
1.34
Lead * USD/lb
0.97
Moly * USD/lb
0.00

Feasibility Study

Technical Report

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
RESOURCE 
CLASS

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
RESERVES

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


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