Marathon Gold on schedule to begin production in early 2025

Marathon Gold (TSX: MOZ) is on track to begin production at its Valentine gold project in Newfoundland by the first quarter of 2025. The company began early works on the property last October, followed by major construction mobilization in January.

In an update Thursday, Marathon said the project stood at 27% completion by the end of the first quarter 2023, compared to a plan of 26%, with engineering at 71%, procurement at 51% and construction at 9%.

Capital costs incurred from the start of early works to the end of March were $64 million, with $144 million committed (excluding sunk costs incurred prior to October 2022). The project’s cost to complete, including contingency, was estimated at $403 million as of the end of March 2023.

“The first quarter of 2023 represented the first full quarter of principal construction at the Valentine gold project. We are pleased with the progress we have made to date, in particular with mining productivity at the Leprechaun pit and the progress of earthworks at the future process plant site,” Marathon’s CEO Matt Manson stated in a press release.

Manson added that his company is now preparing for its new permanent camp to be fully occupied and the start of concrete foundation work at the mill.

In September, the board of Marathon announced a formal decision to proceed with construction at Valentine, considered the largest undeveloped gold project in Atlantic Canada.

An updated feasibility study in December 2022 presented a three-pit mine plan for Valentine based on increased gold reserves of 2.7 million ounces and extended mine of of 14.3 years. During that period, the mine is expected to produce an average of 195,000 ounces of gold per year.

Shares of Marathon Gold rose 1% by 1:15 p.m. EDT, giving the company a market capitalization of $383.9 million.