Marathon PGM (MAR-V, MRPGF-O) plans to begin construction of its open-pit platinum group metals- copper mine near Marathon, Ont., 300 km east of Thunder Bay, by the fourth quarter of this year.
The company is currently in the middle of the permitting process for the project, which could start production by the fourth quarter of 2008.
Marathon chair James Frank says the company is being aggressive with the timeframe, “but we’ve beefed up our team.”
That includes the addition of vice-president of exploration, David Good, who did his PhD thesis on the Marathon deposit.
Measured and indicated resources at Marathon stand at 49.3 million tonnes grading 0.91 gram palladium per tonne, 0.24 gram platinum, 0.09 gram gold and 0.31% copper.
Marathon is calling the deposit Canada’s largest undeveloped PGM-copper resource. The bulk of PGM mines are located in South Africa, with only two large-scale mines in North America: Stillwater Mining’s (SWC-N) underground mine in Montana and North American Palladium’s (PDL-T, PAL-X) open-pit mine in Lac des les, Ont., 85 km north of Thunder Bay.
Compare Marathon with Lac des les: According to 2005 data, proven and probable reserves at Lac des les were about 13.5 million tonnes grading 2.13 grams palladium, 0.22 gram platinum, 0.16 gram gold, 0.7% copper and 0.6% gold (using a cutoff grade of 1.1 gram palladium).
Measured and indicated resources were 29 million tonnes grading 1.51 palladium, 0.18 platinum, 0.11 gold, 0.05% copper and 0.06% nickel.
The mine life at Marathon is expected to be about nine years.
Despite the hefty copper byproduct the company will use to reduce cash costs, Marathon is focusing on the PGMs. In any case, the variety of precious and base metals will help the company should prices drop for either.
“It’s a cushion other producers don’t have,” Frank says.
Projected production will be 18,000 tonnes per day at the mill with a strip ratio of 4:1.
The production rate for Lac des les in 2004 was about 46,000 tonnes per day with a strip ratio of 2.68:1.
Using an 18-month trailing average metal price scenario, the cash operating cost for PGMs will be US$88 per oz. for the first four years and an average of US$91 per oz. over the life of the mine.
Marathon is on land that has been claimed as traditional land by a local First Nations band, but so far, Marathon has had “cordial relations” with the band, Frank says.
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