Generation Mining Updates on Metallurgical Test Programs and Initiates a Pilot Plant
22 October 2020 - 10:30PM
Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining”
or the “Company”) is pleased to provide an update on the continued
progress of the Feasibility Study currently underway for the
Marathon Palladium project in northwestern Ontario (the “Marathon
Project”).
The Company previously reported on the Phase 1
bench-scale metallurgical testing program (news release dated
August 20, 2020) that determined the recovery to be used for the
Feasibility Study and the expected recoveries for the Project going
forward. The Phase 1 Metallurgical Testing program achieved the
following results:
2020 Phase 1 Metallurgical Recovery 1 (as
determined by 2020 Met Testing) |
PEA2 Metallurgical
Recovery |
Variance + positive - negative |
Palladium(Pd) |
86.9% |
82.9% |
+4.0% |
Copper3 (Cu) |
93.0% |
90.0%3 |
+3.0% |
Platinum(Pt) |
84.2% |
74.5% |
+9.7% |
Gold(Au) |
72.4% |
73.2% |
-0.8% |
Silver(Ag) |
Not
evaluated in this program |
71.5% |
n/a |
1 Recovery
calculations are based on the established head grade of composite
samples ranging in Cu, Pd, Pt, and Au head grade and involving
multiple benchscale flotation tests. 2 Preliminary Economic
Assessment (“PEA”) of the Company titled “Amended Technical Report,
Updated Mineral Resource Estimate and Preliminary Economic
Assessment of the Marathon Deposit, Thunder Bay Mining District
Northwestern Ontario Canada” dated July 6, 2020 (effective date of
January 6, 2020); 3 The estimated recovery of Cu is noted per the
PEA for years 6-14 |
In September 2020, the Company progressed to a
Phase 2 metallurgical testing program, again at SGS Canada Inc. in
Lakefield, Ontario. The Phase 2 Metallurgical Testing program is
being overseen by Steve Haggarty, P.Eng., of Haggarty Technical
Services (“HTS”) and Ausenco Engineering Canada Inc. (“Ausenco”)
(acting as the Qualified Person for the upcoming metallurgical and
processing sections of the Feasibility Study Technical Report). The
goal of this program is to further define (i) the performance of
the cleaning and scavenger flotation circuits, (ii) the optimal
grind size in the regrind circuit and (iii) the overall validation
of the circuit performance with a mini-pilot plant. The first two
tasks have been completed. The initial locked cycle testing and a
pilot plant program commenced mid-October and will be completed
during November 2020.
The Phase 2 metallurgical and the pilot plant will
involve three bulk sample composites with varying Palladium (Pd)
and Copper (Cu) content from freshly excavated material in the Main
Zone, W-Horizon, and a composite previous collected in 2012. The
range in grade and material types will allow the Company to
optimize process design criteria and Pd-Cu recovery, while
advancing predictive Geo-Met modeling to estimate Life of Mine plan
metal recoveries from the deposit.
The progress that has been realized on Phase 1 and
Phase 2 testing to date:
- Optimized initial grind size and applied flotation reagents to
maximize platinum group metals (PGM) and Cu recovery to rougher
concentrate;
- Optimized rougher concentrate regrind size and cleaner circuit
performance to maximize PGM-Cu capture to final concentrate;
- Confirmed the applicability of magnetic separation for
pyrrhotite mineralization associated with the Marathon Palladium
project to provide NSR optionality for separate PGM-Cu and iron
sulfide-PGM-Cu concentrates;
- Confirmed the applicability of a cycloned coarse/fine fraction
of rougher tailings that would be subject to additional regrinding
to provide incremental PGM recovery for the project;
- Validated the performance of Woodgrove Direct Flotation Reactor
(DFR) technology which would provide similar or improved PGM-Cu
recovery at higher concentration ratios (lower mass pull);
- Implementation of DFR technology will decrease the footprint
associated with the flotation portion of the processing plant; a
smaller footprint will reduce the capital cost associated with the
construction and is expected to decrease the plant operating costs
and carbon footprint through reduced energy consumption;
- Confirmed that the alternate flowsheet (Figure 1) for plant
design has improved performance and operability over previously
defined process concepts from the 2020 PEA (Technical Report 6 July
2020).
“We believe that the processing plant flowsheet is
an improvement over the past design and the metallurgical testing
programs have shown improved recoveries. The achieved successes and
the validation of the flowsheet will be carried forward in
Feasibility Study designs and into the subsequent detailed
engineering phase. We see the achieved recoveries and overall
design to be very positive for the overall Project”, stated Drew
Anwyll, Chief Operating Officer, Generation Mining.
Figure 1 below is the processing plant flowsheet
for the Marathon Project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fd84c9cc-ec5f-4a4b-b747-34d2c0eb81ac
https://genmining.com/site/assets/files/3765/marathon_palladium_project_simplified_flowsheet.pdf
https://genmining.com/site/assets/files/3765/marathon_pgm_flotation_circuit_revd.pdf
The Phase 2 pilot plant testing will be completed
during Q4, 2020 and is expected to fully validate the flowsheet,
process design criteria, and confirm expectations for final
concentrate grade and quality. The pilot plant test program (as a
key component of Phase 2 Metallurgical test program) is not a
requirement of NI43-101 and is being progressed to allow for
improved clarity for the concentrate marketing and to proactively
progress the future detailed engineering.
About the Company
Gen Mining’s focus is the development of the
Marathon Palladium 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 acquired a 51% interest in the
Marathon Project from Sibanye Stillwater on July 10, 2019 and can
increase its interest to 80% by spending $10 million over a period
of four years. The 80% ownership is expected to be realized later
in Q4 2020. As at the end of Q3 2020, approximately $8.7 million of
the $10 million has been spent. 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 press 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 Levy President and Chief Executive Officer
(416) 640-2934 (416) 567-2440 jlevy@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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