Generation Mining: Capitalizing on the World’s Palladium Shortage
Palladium project set to be one of the top 10 largest precious metal mines in Canada
Generation Mining is developing the 81.7%-owned Marathon Palladium-Copper project in Northwestern Ontario. Marathon is the largest undeveloped palladium project in North America. Most palladium demand is for autocatalysts in cars, which scrub toxic emissions from exhaust and therefore make our air much cleaner.
Further, the world needs about 11 million ounces a year for automobiles and only 10 are being produced. "The world is desperate for a couple of new mines to come on to alleviate that problem," says Executive Chairman and Director, Kerry Knoll.
More on the Marathon Palladium & Copper project
A March, 2021 Feasibility Study has indicated the project has a robust rate of return at forecast palladium prices, and will produce an average 245,000 ounces of Palladium Equivalent (PdEq) annually over a minimum 13-year mine life. Initial capital costs are estimated at C$665 million (US$520 million). Approximately 58% of the revenue will come from palladium, and a further 26% from copper, based on prices of US$1725/oz for palladium and US$3.20 for copper. The remaining revenue will come from platinum, gold and silver. Operating costs are estimated at US$687 per ounce PdEq, while All-In-Sustaining-Costs are estimated at US$809 per ounce PdEq. During 2021, Generation Mining plans to continue the Environmental Approval process, while initiating detail engineering on the project as well as arranging the production financing.
"I think they're poised well. They're sitting on an ideal deposit. The sooner they can get started, the better. I'm very pro Generation Mining," says Precious Metals Commodity Management, Matt Watson.
If engineering, financing, and permitting go as planned, mine construction should begin later in 2022. The mill should be running by early 2024, with full production four to six months later.
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