Marathon Gold Reports Updated NI 43-101 Resource Estimate for the Leprechaun Gold Deposit, Valentine Lake Project: M & I Increa
March 29 2012 - 7:00AM
PR Newswire (Canada)
TORONTO, March 29, 2012 /CNW/ - Marathon Gold Corporation
("Marathon" or the "Company") today announced its updated NI 43-101
compliant Resource Estimate for the Leprechaun Gold Deposit in
central Newfoundland. The 2012 updated Resource Estimate is an
essential component of the project's development and is a key
milestone for Marathon. Updated Audited Resource Estimate Results:
The Global Resource Estimate (above a cut-off of 0.5 g/t Au): --
Measured and Indicated - 6.45 million tonnes @ 2.05 g/t Au
containing 424,000 oz -- Inferred - 5.74 million tonnes @ 1.65 g/t
Au containing 305,000 oz "Marathon had a very successful year in
2011 with consistent positive drill results. We consider this to be
a conservative Resource Estimate, but believe this to be a strong
base to build upon. High-grade areas continue to be the focus in
expanding the open pit potential and it is anticipated that the
extensive 2012 40,000 meter drilling program will contribute to
that boundary expansion," stated Phillip Walford, President and CEO
of Marathon Gold. The Company faced several unforeseen challenges
in the process of updating the Resource Estimate. The main
challenge was that 22 historic drill holes had to be removed from
the database, as they were selectively sampled for underground
Resources, leaving gaps in the mineralized intervals. There were
also down hole surveying errors which became obvious when new holes
were drilled near them. As well, where old drill core could be
recovered and completely sampled, the metal content was generally
not as high as the original intercepts, suggesting that there may
have been some bias in the historical sampling. The decline in
grade can also be attributed in part to a more conservative top cut
in the main zone of 30 g/t Au, compared to 76 g/t Au in 2011. The
issues associated with the historical drill holes are being
mitigated. Marathon began replacing the old drill holes in late
2011 and continues to do so as part of the aggressive 40,000 meter
2012 drilling program. Current drilling is focused on the discovery
and definition of the high-grade zones in an effort to increase the
grade and gold content in the deposit. It is anticipated that
the results of the open pit Resource will be available upon
completion of the 2012 drilling program. As this year`s drilling
program progresses, encouraging results are anticipated and news is
to follow. Valentine Lake Project Leprechaun Gold Deposit: Resource
Estimate Comparable Global Resource
2012
Global Resource 2011
_____________________________________________________________________
| |Tonnes |Grade |Ounces |Tonnes |Grade (g/t)|Ounces | | | |(g/t)
|(oz) | | |(oz) |
|_________|_________|________|__________|_________|___________|_______|
|Measured |1,378,000|1.90 |84,000 |2,768,000|2.77 |187,000|
|_________|_________|________|__________|_________|___________|_______|
|Indicated|5,068,000|2.09 |340,000 |1,200,000|2.36 |90,000 |
|_________|_________|________|__________|_________|___________|_______|
|TOTAL M&I|6,446,000|2.05 |424,000 |3,300,000|2.62 |277,000|
|_________|_________|________|__________|_________|___________|_______|
|Change |3,146,000|0.57 (-)|147,000 | | | | | | | |(+) | | | |
|_________|_________|________|__________|_________|___________|_______|
| | | | | | | |
|_________|_________|________|__________|_________|___________|_______|
|Inferred |5,742,000|1.65 |305,000 |4,400,000|2.01 |285,000|
|_________|_________|________|__________|_________|___________|_______|
|Change |1,342,000|0.36 (-)|20,000 (+)| | | |
|_________|_________|________|__________|_________|___________|_______|
*Mineral Resources are not mineral Reserves and do not have
demonstrated economic viability. There is no certainty that
all or any part of the mineral Resource will be converted into
mineral Reserves. The Valentine Lake Project, including the
Leprechaun Gold Deposit, is a 50/50 Joint Venture between Marathon
Gold and Mountain Lake Resources Inc. ,in which Marathon is the
operator. Mineral Resource Estimate: The Resource Estimate was
conducted by Micon International, as was the previous Resource.
There was a change in personnel at Micon and a different geologist
conducted the updated Resource Estimate using a more conservative
approach, in comparison to the 2011 Resource Estimate, as described
below. A third party audit, conducted by Pierre Desautels P. Geo.,
determined that the method and Resource Estimate were valid.
Mineral Resource Estimate Parameters: a) Estimations are based
on samples composited to 2 meters. Grade capping thresholds were
determined following a detailed statistical analysis of the data
within 7 geological domains. The thresholds varied from 30 Au (g/t)
to 0.45 (Au g/t) depending on the domain. b) Resources were
modeled using 3D interactive modeling backed by sectional
interpretation. A probabilistic model was generated to
differentiate between mineralized and unmineralized material within
several of the zones. c) The database for the Leprechaun Pond model
consisted of 265 diamond drill holes totaling 43,599 meters of
drilling. d) The mineralized zones at Leprechaun Pond have
been modeled approximately 850 meters. along strike. The
Resource has been constrained by a conceptual open pit shell that
includes Resources to a maximum depth of 275 meters. e) The
grade estimate was generated using ordinary kriging interpolation
with 2.0 meter composites. f) Measured Mineral Resources
include all mineralized blocks within the variogram range at 80% of
the sill and estimated using a minimum of 5 composites coming from
at least 2 drill holes. g) Indicted Mineral Resources include
all mineralized blocks within the variogram range and estimated
using a minimum of 3 composites and a maximum of 15 composites.
h) Inferred mineral Resources include all mineralized blocks
within one to two times the variogram range and are estimated with
a minimum of 3 composites and a maximum of 15 composites. i) A
0.50 g/t Au cut-off grade was used for the Resource reporting.
j) A density of 2.7 tonnes per cubic meter was used. The
Resources in this report were estimated in accordance with the
definitions contained in the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and
Reserves Definitions and Guidelines that were prepared by the CIM
Standing Committee on Reserve Definitions and adopted by the CIM
Council on November 27, 2010. A supporting Technical Report will be
filed under the Company's profile on SEDAR in the time allotted.
The Micon personnel responsible for this Mineral Resource Estimate
are Charley Murahwi, M.Sc., P. Geo., FAusIMM and Thomas C. Stubens,
M.A.Sc., P.Eng. Messrs Murahwi and Stubens are Qualified Persons as
defined in NI 43-101, and are independent of Marathon Gold
Corporation and Mountain Lake Resources Inc. Micon acknowledges
that it has read this news release and approves of its contents.
Phillip Walford P.Geo, President and CEO of Marathon Gold, is
Marathon's Qualified Person in compliance with National Instrument
43-101 with respect to this release. Mr. Walford has reviewed the
contents for accuracy and has approved this new release on behalf
of Marathon. About the Valentine Lake Project The Valentine Lake
Joint Venture is a 50/50 joint venture between Marathon and
Mountain Lake Resources Inc. The Leprechaun Gold Deposit is
situated at the south-western end of the Valentine Lake Project,
and the Valentine East Gold Zone is located 17 kilometers along
strike running in a north-easterly direction. The J. Frank
Zone, which currently extends over an area in excess of 850 meters
in length and 250 meters in width, is located up to 1.5 kilometers
southwest along strike from the current resource boundary of the
Leprechaun Gold Deposit. These gold occurrences form part of a 23
kilometer long, highly prospective gold-bearing mineralized
corridor. Marathon is the operator of the Joint Venture, and the
companies have agreed to jointly fund a $11.53 million budget in
2012 that includes plans for 40,000 meters of drilling which is
currently ongoing. About Marathon Gold Corporation Marathon Gold
Corporation is a North American gold resource development company,
with projects located in the mining friendly province of
Newfoundland and Labrador, the prolific Coeur d'Alene Mining
District of Idaho and the historic gold rich Greenhorn District of
Oregon, USA. Marathon has a project pipeline consisting of
early stage exploration to advanced resource development projects.
Marathon is continually evaluating new gold resource development
projects of merit that are located within the Americas.
Marathon's focused and low-cost approach to exploration and
resource development has an established record of delivering rapid
growth. For more information visit: www.marathon-gold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Except
for statements of historical fact relating to Marathon Gold
Corporation, certain information contained herein constitutes
"forward-looking statements". Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, or include words such as "expects",
"anticipates", "plans", "believes", "considers", "intends",
"targets", or negative versions thereof and other similar
expressions, or future or conditional verbs such as "may", "will",
"should", "would" and "could". We provide forward-looking
statements for the purpose of conveying information about our
current expectations and plans relating to the future and readers
are cautioned that such statements may not be appropriate for other
purposes. By its nature, this information is subject to inherent
risks and uncertainties that may be general or specific and which
give rise to the possibility that expectations, forecasts,
predictions, projections or conclusions will not prove to be
accurate, that assumptions may not be correct and that objectives,
strategic goals and priorities will not be achieved. These risks
and uncertainties include but are not limited to those identified
and reported in Marathon Gold Corporation's public filings, which
may be accessed at www.sedar.com. Other than as specifically
required by law, we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the
occurrence of unanticipated events, whether as a result of new
information, future events or results otherwise.
Marathon Gold Corporation CONTACT: Marathon Gold CorporationJennie
GuayInvestor Relations ManagerTel: 1-416-987-0714Email:
jguay@marathon-gold.comwww.marathon-gold.com
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