TORONTO, Aug. 14, 2013 /CNW/ - Marathon Gold
Corporation (MOZ-TSX) ("Marathon") announced today its
unaudited financial results for the three and six months ended
June 30, 2013.
Highlights:
- At June 30, 2013, Marathon held
$1.9 million in cash and working
capital.
- Marathon's 10,000 meter winter drilling program at the
Valentine Lake project was completed in late March and incorporated
into a revised mineral resource estimate for the Leprechaun Gold
Deposit. In the underground portion of the resource, measured
and indicated grade increased to 4.17 g/t from 2.75 g/t in the
previous resource released in October
2012, while the inferred grade increased to 6.13 g/t from
2.6 g/t. In the open-pit portion of the resource, measured
and indicated contained gold increased by 97,000 ounces or 17.3%
compared to the previous resource, with little change in
grade.
- The winter drilling program also drove an initial resource
estimate for Valentine East Hill. This shallow open pit
resource, the first resource away from the Leprechaun Gold Deposit,
represented a discovery cost of approximately $8 per ounce.
- The work program at Valentine Lake is focused a technical study
of the structural geology of the property to prioritize future
drilling targets.
- During the period, Marathon acquired effective control of
Golden Chest LLC, the owner of the Golden Chest Mine property, and
now controls 52.2% of the project.
Operating results:
Marathon's results of operations for the three
and six months ended June 30, 2013
and 2012 are summarized below.
|
Three months ended
June 30 |
Six months ended
June 30 |
|
2013 |
2012 |
2013 |
2012 |
|
$ |
$ |
$ |
$ |
Expenses: |
|
|
|
|
Exploration expenses |
16,692 |
349,404 |
17,969 |
351,476 |
General and administrative expenses |
336,685 |
376,397 |
882,900 |
737,113 |
Interest income |
(8,500) |
(19,570) |
(19,892) |
(33,154) |
Unrealized loss on warrant derivative
investments |
519 |
23,987 |
3,208 |
82,750 |
Foreign exchange loss |
515 |
1,101 |
568 |
816 |
Loss before taxes |
345,911 |
731,319 |
884,753 |
1,139,001 |
Income taxes |
(15,284) |
(376,986) |
(75,502) |
(1,006,574) |
Loss for the period |
330,627 |
354,333 |
809,251 |
132,427 |
|
|
|
|
|
This press release should be read in conjunction
with Marathon's condensed interim consolidated financial statements
for the three and six months ended June 30,
2013 and the related Management's Discussion and Analysis,
both of which are available on www.sedar.com.
About the Valentine Lake Project
Marathon Gold Corporation is the 100% owner of
the Valentine Lake Project. 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 1.4 kilometers in
length and 250 meters in width, is located up to 0.5 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 focused along the Valentine Lake thrust fault.
Valentine Lake Property Description
The Valentine Lake property has two well defined
gold deposits with NI 43-101 complaint resources: the Leprechaun
Gold Deposit and Valentine East Hill Deposit. The Leprechaun Gold
Deposit has a NI 43-101 compliant Measured Open Pit and Underground
Resource. The Open Pit Resource is Measured 3.5 million tonnes @
2.8 g/t Au containing 247,000 oz Au and Indicated 6.2 million
tonnes @ 2.07 g/t Au containing 412,000 oz Au and Inferred 1.2
million tonnes @ 1.82 g/t Au containing 71,000 oz Au. The
Underground Resource is Measured 108,000 tonnes @ 4.83 g/t Au
containing 17,000 oz Au and Indicated 764,000 tonnes @ 4.05 g/t Au
containing 100,000 oz Au and Inferred 349,000 tonnes @ 6.13 g/t Au
containing 69,000 oz Au. The Leprechaun Gold Deposit is open at
depth and along strike. The Valentine East Hill has a NI 43-101
complaint Indicated Resource of 761,000 tonnes @ 1.67 g/t Au
containing 41,000 oz; Inferred: 199,000 tonnes @ 1.47 g/t Au
containing 9,000 oz.
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.
SOURCE Marathon Gold Corporation