Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update


Palladium-Copper Project PEA Shows Robust Economics
News Update

Share on Stocktwits


The study suggests a low-cost mining operation at the Ontario property is possible.

Generation Mining Ltd. (GENM:CSE; GENMF:OTCQB) announced in a news release the results of a preliminary economic assessment (PEA) of its 51%-owned Marathon palladium-copper project in northern Ontario.

"The PEA provides a compelling base case assessment for the development of the Marathon palladium mineral resource by open-pit mining," the release noted.

The report, prepared by P&E Mining Consultants, outlines a mine that would produce an average of 194,000 palladium equivalent ounces per year over a 14-year life, including credits for copper, platinum, gold and silver. Production of palladium alone is forecast to average 107,000 ounces over the mine life, at a $US504 per ounce cash cost and a US$586 per ounce all-in sustaining cost, net of byproduct credits.

In the base case scenario, the project is calculated to yield an estimated 30% after-tax internal rate of return and a CA$871 million after-tax net present value at a 5% discount rate. After-tax cash flows are projected to amount to CA$520 million in the first three years, with achievement of payback at 2.5 years.

Of the three known deposits on the property, only Marathon was included in the PEA. Further, the report only included the Measured and Indicated mineral resources at Marathon.

"With the consensus outlook for palladium and copper strong for the next several years, this is a project whose time has come," Generation Mining Executive Chairman Kerry Knoll said in the release.

As such, the explorer stated it intends to fast-track a feasibility study and permitting for Marathon.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Want to read more about Base Metals and PGM - Platinum Group Metals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe