Generation Mining identifies high priority MT drill target within Marathon Deposit Feeder Zone
Generation Mining identifies high
priority MT drill target within Marathon
Deposit Feeder Zone
Toronto, Ontario – August 6, 2020 – Generation Mining Limited (TSX:GENM) (“Gen
Mining” or the “Company”) is ple ased to announce the preliminar y results from its SPARTAN
Magnetotelluric (“MT”) survey over a portion of the Marathon D eposit resource including the
W Horizon and structures to the west of the deposit which are b elieved to have provided a
favourable environment for enriched palladium mineralization. Analysis of the MT data has
identified one prospective target which consists of a discrete, previously undrilled, conductive
MT anomaly situated at a vertical depth of approximately 650 me ters downdip and immediately
west of the Marathon Palladium Copper Deposit (Figure 1). The anomaly is at a depth beyond
the depth penetration capabilities of a preexisting airborne el ectromagnetic survey of this area
(completed by a previous operato r) and most importantly the ano maly is more conductive than
Marathon Palladium Copper deposit mineralization. Consequently , the anomaly constitutes a
high priority drill target given its coincidence with the presu med down dip extension of the
Marathon Series Gabbros which constitute the feeder zones to, a nd are the host of, PGM-Cu
mineralization at the Marathon Deposit.
Of specific interest in the immediate vicinity of the MT anomal y are extensions to the W
Horizon which is recognized in the scientific literature as a z one of extreme palladium
enrichment.
The magnetotelluric method, typically abbreviated as MT, is an electromagnetic geophysical
technique that uses natural el ectric fields from lightning sour ces, solar flares and ionospheric
resonances that induce current flow in the ground which may be used to image the earth’s
electrical resistivity structure from surface to great depths. MT data are processed and presented
as resistivities which may be correlated with various geologica l features including conductive
features which are of particular interest to the Company at the Marathon Property. MT has been
used successfully on several PGM exploration projects in Northwestern Ontario.
MT surveys at Marathon which began in mid-June 2020 (see June 1 7th, 2020 press release) were
expanded to include the Four Dams as well as the Sally and Mara thon areas. Analysis of the
Sally and Four Dams results is expected shortly. Quantec Geosc ience Limited crews completed
the MT survey on July 24th on ti me and on budget and collected a total of 123 deep search
geophysical soundings over the three survey areas. Alan King, P.Geo. Consulting Geophysicist
at Geoscience North provided on going QA/QC of survey results a s well as data imaging and
interpretation. Data for the entire survey is currently being processed and the Company plans to
begin follow up of MT results wi th a minimum of 5,000 metres of drilling commencing in
August, 2020.
Figure 1 – MT survey results – Section A‐A’
DDH M 19‐535 Az 61.3 deg./Dip ‐72.2 deg. No economic intersecti on
DDH M 07‐405 Az 95.0 deg./Dip ‐76.0 deg. True Thickness 82 m Assays by Accurassay
DDH M 19‐533 Az 91.9 deg/Dip ‐64.2 deg. True Thickness 62 m Assays by ALS Global
Palladium Equivalent Calculation: PdEq = [(Au ppm*USD 41.79594) + (Pt ppm*USD 28.93565) + (Pd
ppm*USD 40.1884) + ((Cu%/100*2204.62) *3)]/40.1884
PdEq Formula Data:1 tonne = 2204.62 lbs, 1 troy ounce = 31.1035 grams, 1 oz Au = USD 1300, 1 oz Pt =
USD 900, 1 oz Pd = USD 1250, 1 lb Cu = USD 3.00, 1 gm Au = USD 41.79594, 1 gm Pt = 28.93565,
1 gm Pd = USD 40.1884
The Company is well financed for the next phases of work, inclu ding the feasibility study and
the restart of the permitting pr ocess, both of which are underw ay at the Marathon Palladium
Copper Project, with approximately $13.5 million in cash.
About the Marathon Palladium Project
Generation Mining has begun a Feasibility Study on the Marathon Deposit, which is the largest
undeveloped platinum group metal Mineral Resource in North Amer ica. The Marathon Property
covers a land package of approximately 22,000 hectares or 220 s quare kilometres. Gen Mining
acquired a 51% interest in the Marathon Property from Sibanye S tillwater on July 10th, 2019 and
can increase its interest to 80% by spending $10 million over a period of four years. As of Q1,
2020, approximately $4 million of the $10 million has already b een spent. Sibanye Stillwater
has certain back-in rights tha t can bring its interest in the P roperty back to 51% after such time
Gen Mining has earned its 80% int erest (see the Company’s press release of July 11 th, 2019, for
more details).
Qualified Person
Rod Thomas, P.Geo., Company Vice-President, Exploration and a D irector 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.
For further information please contact:
Jamie Levy
President and Chief Executive
Officer
(416) 640-2934
(416) 567-2440
Forward-Looking Information
This news release includes certain information that may be deem ed “forward‐looking information” under
applicable securities laws. All statements in this release, oth er than statements of historical facts, that
address acquisition of the Property and future work thereon, Mineral Resource and Reserve potential,
exploration activities and events or developments that the Comp any expects is forward‐looking
information. Although the Company believes the expectations expressed in such statements are based on
reasonable assumptions, such statements are not guarantees of f uture performance and actual results
or developments may differ materially from those in the stateme nts. There are certain factors that could
cause actual results to differ materially from those in the for ward‐looking information. These include 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.