The Newfoundland-based Valentine Lake gold mining project, soon to be co-owned by Calibre Mining (TSX: CXB) (OTCQX: CXBMF) and Marathon Gold (TSX: MOZ), aims to begin gold production in early 2025.
Mark Manson, Marathon president and CEO, reported on Thursday that the project had reached the midpoint of its construction stage. Manson also said previously that the price tag for completion would be an additional $300 million to reach completion.
The Marathon Gold team has successfully completing all the groundwork at the site, which marks the end of the initial phase of construction. The company said that this achievement has laid the foundation for the subsequent stages.
The Valentine Lake project has now shifted its focus to the above-ground construction phase. This next stage includes erecting steel structures that will eventually create the skeletal framework of the mill buildings. This transition to above-ground construction signifies a significant shift in the project’s trajectory, as it marks the beginning of a more visible and tangible phase of construction.
This announcement comes on the heels of a recently announced merger between Calibre and Marathon.
The deal will result in the creation of a mid-tier gold producer with an estimated annual production of 500,000 ounces per year. It also adds a top-tier gold project to its portfolio. Calibre said that the combined company anticipates a robust annual operational cash flow of USD$380 million.
Read more: Calibre Mining’s merger with Marathon Gold deemed ‘tremendous opportunity’
Valentine Lake merger complete in mid-January
Calibre expects to complete the merger with Marathon in mid-January in an all-stock deal worth CAD$345 million. Calibre will carry a 66 per cent stake in the new company with Marathon possessing the remainder.
The company intends to commission a mill by Q4 of next year with an aim towards achieving commercial production by the end of 2025. As of October, Marathon had spent CAD$190 million on the Valentine project, which contains an estimated 4 million ounces of measured and indicated gold.
Meanwhile, Calibre sold 73,241 ounces in Q3 this year, representing its fourth consecutive quarterly record in gold sales. The company’s share price has risen by over 52 per cent in the past year and multiple financial firms have predicted it will continue to rise.
Calibre joined the Mining Association of Canada earlier this month to refine and enhance its mining and business practices.
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