Mike Fagan,
Editor
Aug. 26, 2021
Generation Mining (TSX: GENM)(OTC: GENMF) — currently trading around C$0.80 per share — has tapped previous Glencore executive, Jean-Paul Deco, to help lead the company’s pursuit of mutually beneficial offtake agreements with respect to the company’s flagship, 82.6%-owned Marathon palladium-copper project in northwestern Ontario, Canada.
Generation Mining CEO, Jamie Levy, commented via press release:
“We are very excited to have Jean-Paul join our team to assist us in continuing to build relevant relationships and negotiating mutually beneficial offtake and related agreements. His experience as the head of Glencore’s Canadian Business within such a large trading, mining and smelting company, gives us the depth of experience we will need to navigate this critical aspect of our development.”
As part of that pursuit, Generation Mining has now delivered requested concentrate samples to multiple smelters that have indicated an interest in purchasing Cu-PGM concentrates from any future production from Marathon.
Haggarty Technical Services president, Steve Haggarty, who is managing Gen Mining’s successful metallurgical test and pilot plant program, commented on the concentrate, stating:
“This concentrate should be well received by metal marketers as it provides an additional source of copper, palladium, platinum, gold and silver. The concentrate is clean, with minimal impurity levels, and would be an attractive feed source for a number of smelters.”
The Generation Mining, team is making excellent progress on all fronts as it works toward transitioning Marathon from an exploration to a mine project.
The project is already considered the largest undeveloped platinum group metals (PGM) mineral resource in North America; the company has a strong minority partner in NASDAQ-listed Sibanye-Stillwater; the metallurgy looks good; and resource expansion drilling is set to quickly resume.
A Feasibility Study from March pegs Marathon at an NPV (at 6% discount rate) of ~C$1.07 billion, IRR of 30%, and payback period of 2.3 years. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at All-In Sustaining Cost (AISC) of US$809 per palladium-equivalent ounce. Up front capital costs are estimated at C$665 million.
And keep in mind that that study was done using a palladium price of US$1,725 per ounce and a copper price of US$3.20 per pound. Palladium is currently trading above US$2,400 per ounce and copper is currently trading right around US$4 per pound.
Thus, factoring in those higher metal prices, Generation is sitting on 82.6% of a deposit that should eventually be valued much higher than the current C$1.07 billion as estimated in the 2021 Feasibility Study.
The company has also tapped Endeavor Financial — one of the premier financial advisory firms in the mining space — to lead the financing parameters of the pending development at Marathon.
With solid progress being made on all fronts, Generation Mining, appears well on-track to present speculators with a steady stream of news flow throughout the remainder of the year and into 2022.
Now is an excellent time to be taking a closer look at Generation Mining, and a great place to start is our feature report.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest readers.