Marathon Gold Files Updated Technical Report for the Valentine Gold Project Pre-Feasibility Study

TORONTO, April 22, 2020 (GLOBE NEWSWIRE) -- Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to report that it has filed an updated technical report in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects for the Valentine Gold Project in central Newfoundland, available on SEDAR (www.sedar.com).

The technical report is entitled “N.I. 43-101 Technical Report & Pre-Feasibility Study on the Valentine Gold Project, Newfoundland and Labrador, Canada” and has been prepared by Ausenco Engineering Canada Inc. with an effective date of April 18, 2020.

The Valentine Gold Project Pre-Feasibility Study (“PFS”) supports an open pit mining operation with low initial capital cost and high rate of return over a 12-year mine life (see Marathon news release dated April 6, 2020). Highlights include:

• After-tax IRR of 36% and NPV_5% of C$472M (US$354M) based on US$1,350/oz gold, increasing to 55% and C$769M (US$577M) at US$1,650/oz gold;
  
  
• Initial capital cost (“Capex”) of C$272M (US$205M) yielding a favourable after-tax NPV_5%/Capex ratio of 1.74. Life-of-mine (“LOM”) capital of C$545M (US$409M);
  
  
• After-tax payback of 1.8 years;
  
  
• 12-year mine life, with average gold production of 175,000 oz/year in Years 1-9 from the processing of high-grade mill feed, and 54,000 oz/year in Years 10-12 from the processing of low-grade stockpile;
  
  
• LOM average Total Cash Costs of US$633/oz and All-In Sustaining Costs of US$739/oz;
  
  
• Proven and Probable Mineral Reserves of 1.87 Moz (41.05 Mt at 1.41 g/t Au). Measured and Indicated Mineral Resources, which are inclusive of the Mineral Reserves, are 3.09 Moz (54.9 Mt at 1.75 g/t Au). Additional Inferred Mineral Resources are 0.96 Moz (16.77 Mt at 1.78 g/t Au);
  
  
• Mill capacity of 6,800 tpd (2.5 Mtpa) during Years 1-3 based on gravity-leaching, expanding to 11,000 tpd (4.0 Mtpa) in Year 4 based on gravity-flotation-leaching with LOM average gold recovery of 93%;
  
  
• Simplified execution strategy based on open pit mining, conventional milling and thickened tailings deposition, with no heap leaching.

The PFS was completed by Ausenco Engineering Canada Inc. as Lead Consultant. Moose Mountain Technical Services acted as Mining Consultant, APEX Geoscience Ltd. as Geological Consultant, Golder Associates Ltd. as Tailings Consultant, Stantec Consulting Ltd. as Environmental Consultant and Terrane Geoscience Inc. as Geotechnical Consultant. The Valentine Gold Project Mineral Resource Estimate (see Marathon Gold news release dated January 20, 2020) was prepared by John T. Boyd Company. The Mineral Reserve Estimate was prepared by Moose Mountain Technical Services.