assistantua/iStock via Getty Images

assistantua/iStock via Getty Images

Marathon Gold (OTCQX:MGDPF) -16.6% in Thursday's trading after saying it will proceed with construction of the proposed Valentine gold project in central Newfoundland and Labrador, following the recent successful completion of provincial and federal environmental assessments.

Marathon (OTCQX:MGDPF) said its decision to move forward considers the impact of nearly two years of market inflation on the project's costs, which it estimates at C$470M-C$490M.

The new estimate compares with the initial C$305M capital cost outlined in a March 2021 feasibility study, which outlined a conventional surface mine with two open pits and 13-year milling operation.

Marathon (OTCQX:MGDPF) said it is assessing the new Berry deposit's potential to become a third mining pit, and it expects the revised mine plan will show an increased mineral reserve, extended mine life, and a higher gold production profile compared to the existing plan.

Marathon Gold (OTCQX:MGDPF) offers "decent upside potential thanks to new exploration work," Chatool Investments writes in a bullish analysis posted on Seeking Alpha.