Generation Mining acquires 451 claims in Marathon

Executive Summary

• Generation Mining Ltd. has expanded its land package in the Marathon District, Ontario, by acquiring 451 new mining claims contiguous to its existing holdings.
• The acquisition increases the company's total land package by approximately 36%, bringing the total area to 36,398 hectares (364 square kilometres) comprising 1,617 claims and 47 mining leases.
• The expansion consists of two separate agreements with a local prospector group, adding significant exploration potential along the northern and western margins of the Coldwell complex.

Key Details

• Total Land Expansion: Acquisition of 451 mining claims, increasing the land package from 26,814 hectares to 36,398 hectares.
• Total Holdings: The Marathon district land package now consists of 1,617 claims and 47 mining leases.
• Martinet Agreement:
  • Claims Acquired: 236 claims comprising approximately 5,011.5 hectares along the northern margin of current exploration activities.
  • Financial Terms: Initial payment of $100,000, followed by three subsequent payments of $100,000 over the next three years.
  • Royalty Terms: Vendor retains a 2% Net Smelter Return (NSR) royalty; Generation Mining has the right to purchase 1% of the NSR for $500,000 at any time.
  • Geological Context: Includes historic drilling from 1990 by Noranda (two shallow holes) proximal to major fault systems radiating from the Coldwell complex.
• Foxtrap and South River Agreement:
  • Claims Acquired: 215 claims total (Foxtrap: 140 claims / 2,974.4 hectares; South River: 75 claims / 1,597.7 hectares) on the western margin of the Coldwell complex.
  • Financial Terms: Initial payment of $50,000, followed by three subsequent payments of $50,000 over the next three years.
  • Royalty Terms: Vendor retains a 2% NSR royalty; Generation Mining has the right to repurchase 1% of the NSR for $500,000 at any time.
  • Geological Context: Foxtrap has no record of prior exploration but is considered prospective due to the presence of Eastern gabbro suite units similar to those hosting the Marathon series rocks.
• Strategic Rationale: CEO Jamie Levy stated the expansion strengthens the strategic land position and opens new targets for potential discoveries near the Marathon deposit, crucial for securing critical metals.
• Project Background: The Marathon project is an undeveloped copper-palladium deposit. A feasibility study estimated an NPV of $1.07 billion (6% discount rate), an IRR of 28%, and a 1.9-year payback period. Expected production over a 13-year mine life includes 2,161,000 oz Palladium, 532 million lbs Copper, 488,000 oz Platinum, 160,000 oz Gold, and 3,051,000 oz Silver.

Notable Quotes

• "Growing our land package by approximately 36 per cent strengthens our strategic land position and opens new targets for potential discoveries near the Marathon deposit -- crucial at a time when the world is increasingly focused on securing critical metals." — Jamie Levy, President and CEO