Generation Mining discovers near surface mineralization 300 metres north of the Marathon Deposit – drill intercepts of up to 1.92 g/t palladium and 0.83% copper over 8 metres
Generation Mining discovers near surface
mineralization 300 metres north of the
Marathon Deposit – drill intercepts of up
to 1.92 g/t palladium and 0.83% copper
over 8 metres
Toronto, Ontario – September 2, 2021 – Generation Mining Limited (TSX: GENM; OTCQB:
GENMF) (“Gen Mining” or the “Company”) is pleased to announce results from the first three
holes drilled in the Chonolith area immediately north of the Marathon palladium‐copper deposit
in Northwestern Ontario. The Company completed a positive feasibility study (see March 3rd,
2021 news release) which contemplates the development of an open‐pit mining operation with
robust project economics over a 13‐year mine‐life. As with recently completed work on the
Central Feeder Zone (see 2021 news releases of January 25th, May 10th and August 17th), current
exploration activities are focused on evaluating the potential for additional resources which
could, in the future, potentially extend the life of the proposed operation.
Of the first three holes drilled in the Chonolith area hole MB‐21‐45 yielded the best results,
intersecting a 46 m interval of 1.01 g/t Pd and 0.46% Cu from 50 m to 96 m downhole including
8 m of 1.92 g/t Pd and 0.83% Cu from 59 m to 67 m downhole as well as 5 m of 2.03 g/t Pd and
0.94% Cu from 73 m to 78 m downhole. Hole MB‐21‐45 is approximately 300 m north of the
Marathon Deposit resource pit margin.
Gen Mining’s CEO Jamie Levy stated, “The Marathon property continues to exceed expectations
in terms of its exploration potential. This discovery of high‐grade copper and palladium assays in
near surface drill intercepts on trend from the Marathon Deposit demonstrates the potential for
resource expansion and a longer mine life”.
Significant assay results from the first three holes are included in the Table I below. Based on
sparse drilling, the true width of drill intercepts is currently estimated to be about 75% of the
length of the drill core sampled.
Table I – Significant Assay Results Holes MB‐21‐43 to 45, inclusive
Hole ID From To Length* Pd Pt Au Ag Cu PdEq** Mineralization
m g/t g/t g/t g/t % Au+Pt+Pd+Cu
g/t Style
MB‐21‐
43 172 307 135 0.43 0.13 0.05 1.09 0.21 0.82 Main
Including 261 277 16 1.21 0.32 0.12 2.54 0.48 2.11 Main
MB‐21‐
44 8 88 80 0.78 0.17 0.09 0.51 0.10 1.08 W‐Type
Including 8 20 12 1.62 0.27 0.11 0.68 0.15 2.06 W‐Type
And 220 226 6 0.56 0.16 0.04 0.43 0.09 0.81 Main
And 257 260 3 0.46 0.13 0.04 1.47 0.18 0.79 Main
And 263 266 3 0.57 0.13 0.05 2.30 0.33 1.11 Main
And 299 316 17 0.26 0.07 0.02 0.95 0.17 0.53 Footwall Type
And 325 355 30 0.52 0.12 0.05 1.39 0.31 1.02 Main
MB‐21‐
45 6 34 28 0.73 0.18 0.10 0.85 0.10 1.04 Main
Including 6 12 6 1.22 0.26 0.07 1.30 0.08 1.53 Oxide
Melatroctolite
And 50 96 46 1.01 0.17 0.11 2.13 0.46 1.78 Main
Including 59 67 8 1.92 0.31 0.19 3.25 0.83 3.31 Bornite
Including 73 78 5 2.03 0.29 0.24 4.42 0.94 3.58 Bornite
And 215 252 37 0.74 0.20 0.07 1.65 0.38 1.40 Main
* True width of intercept is approximately 75% of the length of the interval sampled
** 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 $1,725, $1,000, $1,400 were used, respectively, for Pd, Pt and Au and a $3.20/lb value was assigned for Cu
Drill hole collar locations are shown in Figure 1. Figures 2 and 3 are vertical cross and vertical
long sections, respectively. Figure 4 is a schematic longitudinal showing the location of the
Marathon Deposit and the exploration targets in the immediate vicinity of the deposit. Figures
are included at the end of this news release.
The Chonolith area comprises two discrete mineralized zones which are hosted by Marathon
Series rocks that are primarily Two Duck Lake gabbros. The upper zone, referred to as the Power
Line Zone, comprises a near surface intrusion controlled by a footwall embayment (a thermally
eroded channel) similar to the structural setting of the Main Zone of the Marathon deposit. The
lower zone referred to as the Chonolith Zone is quite different and based on limited historical
drilling appears to be a channelized chonolith structure (a magma tube) within the Archean
footwall. This structure has a top and a bottom as well as sides which have yet to be delineated.
It’s possible that the Chonolith Zone is connected to the Marathon Deposit and as such could be
one of several important feeder zones to the Marathon Deposit.
Both the Power Line and Chonolith occurrences were explored in the early 2000s. The first three
holes of the current drill program were collared in the vicinity of hole BO‐06‐20 drilled by Benton
Resources in 2006 which intersected 100.5 m assaying 0.93 g/t Pd, 0.25 g/t Pt, 0.10 g/t Au and
0.58% Cu. All three holes drilled by Gen Mining intersected the near surface Power Line and the
deeper Chonolith zones. Mineralization styles are consistent with those observed elsewhere on
the property. Of note is the presence of bornite in the upper portion of MB‐21‐45 which
coincides with elevated precious metal values as well as predictably higher copper
concentrations. Since this intercept is quite close to surface, and historical drill density is quite
low in this part of the property, the area will constitute a priority exploration target going
forward.
Drilling of the Chonolith and Powerline is ongoing. Another three holes have been drilled and
five more remain to complete this phase of the exploration drill program which is planned to
wrap up on or about September 15th, 2021.
Quality Assurance/Quality Control
Quality assurance and quality control (“QA/QC”) protocols for the 2021 drilling assay program
were unchanged from previous years and involve a rotating inclusion of one duplicate, blank,
low‐grade standard and high‐grade standard every 15 samples. All controls are checked to be
within a working limit of 2 standard deviations. Sample intervals are selected in 1 m or 2 m lengths
dependent on the nature of the mineralized zone. The core samples are split on site using a
diamond saw where half of the core is sent for analysis and the other half is securely stored on
site for future reference. All samples are shipped to ALS in Thunder Bay for processing.
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 Project, a large undeveloped platinum
group metal mineral deposit in Northwestern Ontario. The Company released the results of the
Feasibility Study on March 3, 2021 and published the NI43‐101 Technical Report dated March 25,
2021. The Marathon property covers a land package of approximately 22,000 hectares, or 220
square kilometres. Gen Mining currently owns an 82.6% interest in the Marathon Project, with
the remaining interest owned by Sibanye‐Stillwater.
The Feasibility Study estimated that at US$1725/oz palladium, and US$3.20/lb copper,
Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a
payback of 2.3 years and an Internal Rate of Return of 30%. Up front capital costs were estimated
at C$665 million. The mine would produce an estimated 245,000 palladium equivalent ounces
per year over a 13‐year mine life at an All In Sustaining Cost of US$809 per palladium‐equivalent
ounce. For more information, please review the detailed Feasibility Study dated March 25, 2021,
filed under the Company’s profile at SEDAR.com.
For further information please contact:
Jamie Levy
President and Chief Executive
Officer
(416) 640‐2934
(416) 567‐2440
Forward‐Looking Information
This news release contains certain forward‐looking information and forward‐looking statements, as defined in
applicable securities laws (collectively referred to herein as "forward‐looking statements"). Forward‐looking
statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All
statements other than statements of historical fact are forward‐looking statements. Often, but not always, forward‐
looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or
"believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results
"may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, including statements relating to
advancing the Marathon Project to bring the project into production, and any future exploration. All forward‐looking
statements, including those herein are qualified by this cautionary statement.
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 commodity price volatility, continued
availability of capital and financing, uncertainties involved in interpreting geological data, increases in costs,
environmental compliance and changes in environmental legislation and regulation, the Company’s relationships
with First Nations communities, exploration successes, and general economic, market or business conditions, as well
as those risk factors set out in the Company’s annual information form for the year ended December 31, 2020, and
in the continuous disclosure documents filed by the Company on SEDAR at www.sedar.com. Readers are cautioned
that the foregoing list of factors is not exhaustive of the factors that may affect forward‐looking statements.
Accordingly, readers should not place undue reliance on forward‐looking statements. The forward‐looking
statements in this news release speak only as of the date of this news release or as of the date or dates specified in
such statements.
Forward‐looking statements are based on a number of assumptions which may prove to be incorrect, including, but
not limited to, assumptions relating to: the availability of financing for the Company’s operations; operating and
capital costs; results of operations; the mine development and production schedule and related costs; the supply and
demand for, and the level and volatility of commodity prices; timing of the receipt of regulatory and governmental
approvals for development projects and other operations; the accuracy of Mineral Reserve and Mineral Resource
Estimates, production estimates and capital and operating cost estimates; and general business and economic
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 on SEDAR 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.
Figure 1: Drill collar location map of the Chonolith area showing the location of recently
completed GenMining drillholes MB‐21‐43, MB‐21‐44, MB‐21‐45 and Benton Resources
drillhole BO‐06‐20 which was drilled in 2006. Also shown is the location of Vertical Section
5406650 situated approximately 300 m north of the Marathon deposit.
Figure 2: Vertical Cross Section 5406650N showing the disposition of the near surface
Powerline and the underlying Chonolith mineralized zones and results for GenMining drillholes
MB‐21‐43, MB‐21‐44 and MB‐21‐45. Also shown are results for the Benton Resources drill hole
BO‐06‐20 which was drilled in 2006.
Figure 3: Vertical 3D‐Longitudinal Section of the Chonolith area showing the location and
results for the Benton Resources drillhole BO‐06‐20 drilled in 2006 as well as the location and
results for recently completed GenMining drillholes MB‐21‐43, MB‐21‐44 and MB‐21‐45.