Generation Mining (GENM.TO) still has a bunch of flow-through dollars to burn through, and the company has been working on an exploration plan for the ‘greater Marathon’ area. The pit of the feasibility study has been completely drilled off and converted into reserves, so Generation Mining decided to drill-test some of the other exploration targets it has.
In a recent update, Generation released the assay results of the first three holes drilled on the Chonolith area, which is immediately north of the known deposit. Surprisingly, the drill bit intersected some interesting grades and widths just a few hundred meters north of the deposit with hole 45 being the best of the three holes as the drill bit encountered 46 meters containing 1.01 g/t palladium and 0.46% copper starting just 50 meters down-hole. The gross rock value of those two metals alone at $2000 palladium and $3.5 copper is about US$100/t and that even excludes the (low) gold and silver values and the 0.17 g/t platinum value.
The 46 meter interval also contains a higher grade interval with a width of just about 8 meters at 3.31 g/t palladium-equivalent, starting just 59 meters down-hole, which also is excellent. And with a true width of about 75% of the reported width, this discovery may have some legs.
The market couldn’t care less as the share price didn’t move at all on the news, which tells you the market is looking at Generation Mining as a developer rather than an exploration company. While the recent exploration results may add some meat to the Marathon PGM bones, the market doesn’t seem to be too interested in additional exploration activities, and is anxiously awaiting the path forward to bring the Marathon PGM project in production.
Disclosure: The author has a long position in Generation Mining. Generation Mining is a sponsor of the website. Please read our disclaimer.
