Generation Mining Updates ON Metallurgical Test Programs and Initiates a Pilot Plant
GENERATION MINING UPDATES ON
METALLURGICAL TEST PROGRAMS AND
INITIATES A PILOT PLANT
Toronto, Ontario – October 22, 2020 – 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:
1. Optimized initial grind size and applied flotation reagents to maximize platinum group
metals (PGM) and Cu recovery to rougher concentrate;
2. Optimized rougher concentrate regrind size and cleaner circuit performance to
maximize PGM‐Cu capture to final concentrate;
3. 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;
4. 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;
5. 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);
6. 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;
7. 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.
Figure 1: Processing Plant Flowsheet being used in the Feasibility Study
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
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.