| | | Insiders adding ounce again,, another30 grand unlike insiders of plug with a foolish cell before it goes bloom
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Happy New Year
Last year was the busiest and most fruitful in Generation Mining’s relatively brief history as a mine developer. The team at Gen Mining accomplished most of what we set out to do during the year, in the time frames we set out for ourselves, and within the expected budget, moving the Marathon Palladium-Copper project closer to production. On the ESG front, we determined the low carbon footprint of the Marathon Project, added a fifth highly skilled independent director and continued to shrink the overall size of the plant site. Our share price responded with a 30% gain during the year, on top of a gain of more than 300% in 2020. We thought it would be worthwhile to share the list of important milestones accomplished during 2021. For details of each of the events listed below, please consult the News section of the Company’s website.
2021 MILESTONES
January: Completion of Pilot Plant – The pilot plant was operated under the direction of metallurgist Steve Haggarty at SGS Canada. The plant confirmed the recoveries estimated in previous testing (including 86.9% for palladium and 93% for copper) and provided concentrate samples needed for negotiation with a variety of smelters.
March: Release of Feasibility Study – A comprehensive feasibility study led by G Mining Services was released. The study confirmed the case for building a mine at Marathon. At long-term estimated metal prices the study projected a base case Net Present Value of $1.07 billion and an internal rate of return of nearly 30%, and annual production of 245,000 palladium equivalent ounces over 13-year mine life.
April (1): Agreement in Principle with Local First Nation – Gen Mining signed an agreement in principle with Biigtigong Nishnaabeg, providing the First Nation with community benefits including financial benefits, training, jobs, and business opportunities. The Agreement outlines the framework for a Community Benefit Agreement.
April (2): Filing of Environmental Impact Statement Addendum – The updated Environmental Assessment was filed with the Joint Review Panel which had been appointed by the federal and provincial governments to examine the Marathon project, allowing them to begin the review process.
Throughout 2021: Exploration Extends Mineralization at Depth and to the North – Two drilling programs added to the mineralized zones near the Marathon deposit. The first program returned several mineralized intersections in what has been labelled the Central Feeder Zone, below the open pit of the Marathon Deposit. A second program followed up on known mineralization to the north of the deposit, which successfully expanded the zone and indicated a possible bridge between this mineralization and the Main Zone.
August: Appoints Endeavour Financial – Gen Mining engaged Endeavour Financial, an experienced financial advisor to help arrange eventual construction financing.
September: Begins Mine Permit Applications – The company made the decision to begin the permitting process, including a Closure Plan, while the Joint Review Panel was conducting its review. This is expected to speed up the granting of permits following the approval of the Environmental Assessment.
October: Begins Detailed Engineering – After a rigorous review process, Gen Mining appoints Wood, the global consulting and engineering company, to commence with the processing plant engineering and long lead-time procurement.
December (1): Agreement to Bring Marathon Ownership to 100% – Signed a binding agreement with Sibanye-Stillwater whereby Gen Mining will purchase the 16.5% of the Marathon Project it doesn’t already own in return for the issuance of 21.7 million common shares of Gen Mining.
December (2): Joint Review Panel Completes EIS Review – The Panel determined that the information provided by Gen Mining for its Environmental Impact Statement was sufficient to proceed to a public hearing. The next major development in the process will be virtual public hearings, scheduled for February 15th, 2022.
December (3): Carbon Footprint Among Lowest in the World – As part of the Company’s ESG Strategy, Skarn Associated was commissioned to analyze the carbon intensity of the Marathon Palladium-Copper Project. It was determined that the project, on a copper-equivalent basis, would have the second-lowest operational carbon footprint in Canada and be within the bottom 4% in the world.
December (4): Wheaton Precious Metals to Purchase Stream – Gen Mining agreed to sell to Wheaton a stream on all of its gold production and a portion of its platinum production, for $240 million. The funds will be provided in tranches and will be used for detailed engineering, equipment purchase, and eventually mine construction. Please see the Dec. 22, 2021, News Release for details.
Throughout the Year: Built a Strong Team of Mine Builders – A great project is nothing without a strong team to build it, and Gen Mining has assembled just that. Please see the Company Presentation on the website for details.
As much as we accomplished in 2021, we expect that 2022 will be far busier. Early in the year will be the Joint Review Panel hearings, part of the Environmental Impact Statement review. We expect that within 90 days following the hearings, the Joint Review Panel will make its final recommendations. Those recommendations will be provided to the provincial and federal Ministers of the Environment for a final decision. Once that is made, the various government departments will be in a position to progress and approve the critical Marathon permit applications required to start construction. The Company also anticipates finalizing agreements with the applicable First Nations in the first half of 2022.
Another major effort in 2022 will be arranging the balance of the financing, including debt, equipment leasing, and equity. At the same time, the Company anticipates arranging offtake agreements with one or more smelters.
All of these events are expected to lead to the start of construction later in the year. Gen Mining will continue to build out its team during 2022 and also intends to ramp up its Investor Relations and Conference Schedule during the year. |
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