Recent metallurgical testing improves the net present value of the Marathon PGM‘s (MAR-T) platinum group metals and copper project by 47% to $113 million, the company reported today.
Marathon says it’s considering revising its feasibility study to include the new metallurgical flow sheet and the new recovery data.
Marathon had representative samples of ore from the Marathon project 10 km north of Marathon, Ont. tested by the Xstrata Process Support under the guidance of Micon International.
Metallurgical recoveries increased for gold, platinum and palladium. Gold improved by 7% to 79.9%, platinum increased by 8% to 71% and palladium recoveries were up 3% to 81%.
The company says the recent decline in costs of most of the materials used in construction and operation of the proposed mine, located 10 km north of Marathon, Ont., is also a reason for reviewing the project capital and operating costs as well.
Marathon conducted the tests to optimize the metallurgical flow sheet.
More specifically, it wanted to optimize the reagent addition rates and addition points and complement the extensive metallurgical work done by SGS Lakefield in 2008 that was used in the definitive feasibility study that came in last December.
The Xstrata test program included bench scale open circuit and locked cycle tests and a continuous five-day MPP campaign which processed about 2,000 kg of crushed ore.
Marathon hopes to build a 22,000-tonne per day open pit operation that would produce 42 million lbs. copper, 201,000 oz. PGM+gold and 310,000 oz. silver per year over 10 years.
The feasibility study put cash costs at $586 million with an after tax internal rate of return of 12.4% and a payback period of 4.7 years.
Cash costs, net of credits would be (-US$53) per oz. PGM+gold or about US28¢ per lb. copper.
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