Generation Mining Announces Completion of Pilot Plant and Feasibility Study Update
January 27 2021 - 6:00AM
Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining”
or the “Company”) is pleased to provide a progress update for the
Marathon Palladium-Copper Project in Northwestern Ontario (the
“Marathon Project”) including the completion of Phase 2
metallurgical testing, pilot plant trials, and continued
advancement on the Feasibility Study.
The Company previously reported on Phase 1 bench-scale
metallurgical testing (news release dated August 20, 2020) that
established improved PGM and Cu recoveries for use in the
Feasibility Study and the Project going forward.
The Company initiated Phase 2 testing program that included
locked cycle flotation testing and pilot plant trials. Work started
in September 2020 at SGS Canada Inc. (SGS) in Lakefield, with
completion of the lab-work in December 2020. The Phase 2 program
reaffirmed expectations for metal recovery (as established in the
Phase 1 testing) and demonstrated the expected range of Cu-PGM
concentrate grade. The evaluation of Woodgrove Direct Flotation
Reactors (DFR) technology for cleaner circuit flotation was also
completed supporting feasibility study design concepts.
Jamie Levy, CEO commented, “We are extremely pleased with the
work completed in both the Phase 1 and Phase 2 metallurgical
testing programs. We have advanced on a Feasibility design that
includes an annual production rate of 9.2 million tonnes per year
and believe the plant flowsheet and design is an improvement on
prior concepts with key elements greatly de-risked. The Feasibility
Study is advancing very efficiently, and we expect to have the
Study ready for communication later in Q1, 2021.”
The Cu-PGM concentrate from the Phase 2 testing was produced
from three bulk sample composites. Two bulk sample composites were
collected during 2020 from the location of the north pit footprint
(“Main deposit”), and the south pit footprint (“W-Horizon”), with
evaluation of a historical Composite 3 from past test work
completed during 2010-2013. The Phase 2 test program outlines the
expected range in PGM-Cu concentrate grade for the Feasibility
Study and design process flowsheet. Phase 2 test results are noted
in Tables 1a and 1b below.
Table 1a: Marathon Project Phase 1 & 2
Metallurgical Test Results |
Metal Recovery |
2020 Phase 2Pilot Plant
TestProgram1 |
2020 Phase 1 Benchscale
TestProgram2 |
2020 PEATechnicalReport3 |
Variancefrom 2020PEA to
2020FS |
%Rec Copper (Cu) |
92.5 - 94.7 |
93.0 |
90.04 |
+3.0 |
%Rec Palladium (Pd) |
86.9 - 90.2 |
86.9 |
82.9 |
+4.0 |
%Rec Platinum (Pt) |
63.5 - 69.7 5 |
84.2 |
74.5 |
+9.7 |
%Rec Gold (Au) |
67.7 - 86.9 |
72.4 |
73.2 |
-0.8 |
Table 1b: Concentrate
Grades from Phase 2 Pilot Plant Testing |
Cu-PGM ConcGrade |
Main ZoneCompositeCu-PGM
ConcGrade1 |
W-HorizonCompositeCu-PGM
ConcGrade1 |
2012Composite 3Cu-PGM
ConcGrade1 |
2020 PEATechnicalReport3 |
Cu % |
19.7 |
18.7 |
18.7 |
17 - 19 |
Pd g/t |
38.9 |
171.0 |
18.6 |
40 - 60 |
Pt g/t |
7.6 |
43.5 |
4.0 |
10 - 17 |
Au g/t |
3.3 |
17.6 |
2.7 |
4 - 8 |
Ag g/t |
68.0 |
50.0 |
42.2 |
40 - 200 |
Fe % |
24.7 |
20.3 |
28.4 |
29 |
S % |
23.6 |
17.2 |
25.9 |
24 |
Mg % |
2.2 |
6.3 |
1.9 |
2.2 |
Notes: |
1 |
Metal
recoveries and Cu-PGM concentrate grades listed were established
during Q4 2020 Phase 2 pilot plant testing. |
2 |
Metal recoveries listed were determined during Q2-Q3 2020 Phase
1 benchscale metallurgical testing. |
3 |
Preliminary Economic Assessment (“PEA”) titled “Amended
Technical Report, Updated Mineral Resource Estimate and Preliminary
Economic Assessment of the Marathon Deposit, Thunder Bay Mining
District Northwestern Ontario Canada”, July 6, 2020. |
4 |
The estimated recovery of Cu is noted per the PEA for
production years 6 to 14. |
5 |
Lower platinum recovery in the Phase 2 pilot plant program was
a function of lower bulk composite head grade and is not considered
a material impact to the established recovery equation to be used
in the Feasibility Study. |
Figure
1: PGM-Cu Conc produced during Q4
2020 pilot plant testing of the Main Zone Composite sample at
SGS-Lakefieldhttps://www.globenewswire.com/NewsRoom/AttachmentNg/980085a5-675e-470d-a4bd-07d4fa4f7895
The process flowsheet considered for the project includes
conventional primary crushing, SAG and Ball mill grinding with a
pebble crusher, followed by rougher flotation, concentrate
regrinding, and three stages of cleaning to produce a Cu-PGM
concentrate. A PGM scavenger flotation circuit on rougher tailings
provides an incremental gain in overall metal recovery. As part of
the of the Feasibility Study and financial analysis, the economics
and timing of the PGM Scavenger circuit is being studied.
During Phase 1 testwork, the effectiveness of Woodgrove direct
flotation reactors (DFR cells) on rougher flotation with a
flotation feed size of 80% passing 106 microns were evaluated. DFR
cells were similarly evaluated for cleaner circuit flotation during
Phase 2 pilot plant testing. DFR cell technology is being
considered in the Feasibility Study throughout the flotation
circuit offering the potential for improved final concentrate
grade, at maintained metal recovery, with reductions in operating
cost and initial constructed capital cost when compared to a
conventional flotation circuit design.
Completion of Phase 1 and Phase 2 metallurgical testing program
at SGS Canada Inc. in Lakefield, Ontario was overseen by Steve
Haggarty, P.Eng., of Haggarty Technical Services (“HTS”) with
participation of Ausenco Engineering Canada Inc. (“Ausenco”)
(Robert Raponi, P.Eng of Ausenco will be acting as the Qualified
Person for the upcoming metallurgical and processing sections of
the Feasibility Study Technical Report). The test program was
completed in December 2020 and provides design criteria required
along with a viable process flowsheet for continued advance of the
Feasibility Study and potential next steps involving detailed
engineering.
The 2021 Feasibility Study, which will be completed during Q1
2021, includes value-adding-concepts from all disciplines with a
focus on streamlining the project to optimize financials within the
framework associated with the Environmental Impact Assessment (EIA)
and previous commitments for the site.
About the Company
Gen Mining’s focus is the development of the Marathon Project,
the largest undeveloped platinum group metal Mineral Resource in
North America. The Marathon property covers a land package of
approximately 22,000 hectares, or 220 square kilometres. Gen Mining
owns an 80% interest in the Marathon Project, with the remaining
interest owned by Sibanye Stillwater. Sibanye Stillwater has
certain back-in rights that allow it to increase its interest in
the Marathon Project back up to 51% in certain circumstances and
subject to certain conditions after such time as Gen Mining has
earned its 80% interest (see the Company’s news release of July 11,
2019 for more details).
Qualified Person
The scientific and technical content of this news release was
reviewed, verified, and approved by Drew Anwyll, P.Eng., M.Eng,
Chief Operating Officer of the Company, and a Qualified Person as
defined by Canadian Securities Administrators National Instrument
43-101 “Standards of Disclosure for Mineral Projects.”
For further information please contact:
Jamie LevyPresident and Chief Executive Officer(416)
640-2934(416) 567-2440jlevy@genmining.com
Forward-Looking Information
This news release includes certain information that may be
deemed “forward-looking information” under applicable securities
laws. All statements in this release, other than statements of
historical facts, that address the ability of the Company and
Sibanye Stillwater to vary their respective participating interests
in the Marathon Project, Mineral Resource and Reserve potential,
exploration activities and events or developments that the Company
expects are forward-looking information. Although the Company
believes that the expectations expressed in such statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the statements. There are certain factors
that could cause actual results to differ materially from those in
the forward-looking information. These include, among other
factors, market prices, exploration and development successes,
continued availability of capital and financing, and general
economic, market or business conditions.
Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments
may differ materially from those projected in the forward-looking
information. For more information on the Company, investors are
encouraged to review the Company’s public filings at www.sedar.com.
The Company disclaims any intention or obligation to update or
revise any forward- looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
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