The board of Marathon Gold has decided to proceed with the construction of the Valentine Gold Project in the central region of Newfoundland and Labrador, Canada.

The decision follows the completion of the provincial and federal environmental assessments (EA) for the project, an updated cost to complete the assessment, as well an assessment of the project’s overall investment merits.

Marathon Gold president and CEO Matt Manson said: “Valentine is one of Canada’s best-undeveloped gold deposits located in one of the world’s best mining jurisdictions.

“After more than three years of environmental assessments, we have now been approved by the regulators to move forward with its development.

“The company’s decision to proceed with construction of the Valentine Gold Project considers the impact of almost two years of market inflation on the Project’s costs, as well as a necessarily cautious approach to project management, contingency and scheduling.”

The firm is assessing the project’s construction cost to complete.  It is estimated to be in the range of C$470m ($356.9m) to C$490m ($372.18m).

Manson added: “The future addition of the new Berry Deposit, which forms the centre of our ongoing mine planning, offers an extension to the project’s mine life and an improved gold production profile, even as we manage the increased cost-of-entry to the business.”

According to estimates, the project has proven and probable mineral reserves of 2.05Moz (47.1Mt at 1.36g/t Au).

The firm will now proceed with development activities for the project in compliance with the conditions of each EA and secure related site-specific permits.