Generation Mining Begins 8,000 Metre Drill Program at Marathon
February 23 2021 - 6:00AM
Generation Mining Limited (TSX: GENM; OTCQB: GENMF) (“Gen Mining”
or the “Company”) is pleased to announce that it has signed a
contract with Boart Longyear Canada for an 8,000-metre exploration
drilling program on its Marathon palladium-copper project in
Northwestern Ontario. The drill and crew have mobilized to site and
drilling is underway on the first hole at the Central Feeder Zone
target. Two phases of drilling are planned. The winter program is
underway; targets for the summer drill program are in the
development stage.
The winter phase of the program will comprise approximately
3,000 metres and is designed to follow up on high grade, ramp
accessible, drill results obtained from the recently completed 2020
drilling program of the Central Feeder Zone. Highlights from the
2020 drill program (see news release of January 5th, 2021) include
drill intercepts* of up 8 metres grading 3.86 grams per tonne
(“g/t”) palladium (“Pd”), 1.36 g/t platinum (“Pt”), 0.43% copper
(“Cu”) within 43 metres grading 2.82 g/t palladium equivalent**
(“PdEq”). The 2020 program also located, by way of downhole
electromagnetic surveys completed by Crone Geophysics, two off-hole
electromagnetic conductors which may be in response to massive
sulphide accumulations on the floor of the Central Feeder Zone.
These conductors may be similar to the 16-metre interval of net
textured to massive sulphides intersected in hole M-20-543 (see
news release of October 29th, 2020).
Initial testing of two other areas is also planned for the
winter drill program. These include the Chonolith Zone, located
north of the Main Zone, where historical drilling (2006) in this
area yielded results which suggest the potential for wide zones of
Pd and Cu mineralization, similar to hole BO-06-20 which assayed
0.93 g/t Pd and 0.58% Cu over a 100.5 m interval (from 215.8 m to
316.3 m downhole). The collar location of the planned hole in this
area is a 50 m southerly step-out from hole BO-06-20.
Additionally, three holes are planned to test the westerly down
dip extension of the Southern W Horizon of the Marathon Deposit.
The high-grade Southern W Horizon is defined by a cluster of more
than 20 drill holes with the Marathon Deposit. The best intercept
from within the 20-hole cluster was 0.83 g/t gold, 4.79 g/t Pt,
15.77 g/t Pd and 0.21 % Cu over 10 metres in hole M-07-304, from
6.0 m to 16.0 m downhole and equivalent to 20.34 g/t PdEq (see news
release of October 8th, 2019). The three holes will be drilled from
one set-up situated approximately 100 m west of the deposit’s
western margin.
Gen Mining’s CEO Jamie Levy stated, “We are excited to follow up
on the positive drill results from the summer 2020 program. The
2020 program also gave us two very prospective off hole conductor
targets further down dip within the Central Marathon Feeder zone,
which will be part of this program. We are also very excited to
test the possible down dip extension in the high Pd grade Southern
W-Horizon as well as begin evaluating the Chonolith Zone. All three
areas have the potential to host ramp accessible resources
immediately adjacent to the Marathon Deposit.”All three exploration
drill target areas are external to the resource inventory provided
by the most recent Preliminary Economic Assessment (“PEA”)
completed on the Marathon Deposit by P&E Mining Consultants
Inc. which has an effective date of January 6th, 2020 and is
available on SEDAR.
All three areas would be potentially ramp-accessible from any
potential future open pit operations which are currently the
subject of a Feasibility Study which is scheduled to be released
during Q1-2021.
* drill intercepts lengths approximate true
widths
** The Palladium Equivalent (“PdEq”) calculation
expressed in g/t is the sum of the theoretical in situ value of the
constituent metals (Au + Pt + Pd + Cu) divided by the value of one
gram of palladium. The calculation makes no provision for expected
metal recoveries or smelter payables. USD per ounce commodity
prices of $1,300, $900, $1275 were used, respectively, for Au, Pt
and Pd and a $3/lb value was assigned for Cu.
Figure 1 is a schematic long section of the
Marathon Deposit showing the PEA pit margin and the location of the
three exploration drill target areas. Figure 2 is a closeup of the
Central Feeder Zone target area.
Figure 1 – Long Section of Marathon
Deposithttps://www.globenewswire.com/NewsRoom/AttachmentNg/e2322680-27f1-46d8-84b5-cbf6893b9a6f
Figure 2 – Central Feeder Zone – Planned 2021
Drillinghttps://www.globenewswire.com/NewsRoom/AttachmentNg/b3b88446-b60b-4940-ad35-980fd494ab68
Qualified Person
Rod Thomas, P.Geo., Company Vice-President
Exploration and a Director has reviewed and approved the scientific
and technical information contained in this news release. Mr.
Thomas is a Qualified Person for the purposes of National
Instrument 43-101 Standards of Disclosure for Mineral Projects.
About the Company
Gen Mining’s focus is the development of the Marathon Deposit in
northwestern Ontario, the largest undeveloped platinum group metal
Mineral Resource in North America. A Feasibility Study is under way
with completion expected in the current quarter. Gen Mining
announced on Nov. 30, 2020 that it has increased its interest in
the property to 80%. As a result, Gen Mining and partner Sibanye
Stillwater (Sibanye) will be required to fund future expenditures
on a pro rata basis (80% funded by the Company and 20% by Sibanye)
in order to maintain their respective interests in the Project,
subject to standard dilution provisions. Upon completion of the
Feasibility Study and a positive production decision, Sibanye will
have certain back-in rights that can bring its interest to 51% (see
the Company's press release of July 11, 2019 for more details).
For further information please contact:
Jamie LevyPresident and Chief ExecutiveOfficer(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 Company’s exploration plans,
ability to potentially expand mineral resources and the impact
thereon, the ability of the Company and Sibanye Stillwater to vary
their respective participating interests in the Marathon Property,
Mineral Resource and Reserve potential, exploration activities and
events or developments that the Company expects is 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, the results of the
Company’s due diligence investigations, market prices, exploration
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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