TORONTO,
Nov. 12, 2013 /CNW/ - Marathon
Gold Corporation (TSX: MOZ) ("Marathon") announced today its
unaudited financial results for the three and nine months ended
September 30, 2013.
Highlights:
- At September 30, 2013, Marathon
held $1.4 million in cash and working
capital. Management reduced headcount during the period and
implemented cuts to salaries, director remuneration and other
administrative expenditures to reduce non-exploration
spending.
- 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 open-pit
resource estimate for the Victory Gold Deposit, located 13 km to
the northeast of the Leprechaun Gold Deposit, consisting of an
indicated resource of 761,000 tonnes grading 1.67 g/t gold and an
additional inferred resource of 199,000 tonnes grading 1.47 g/t
gold. This shallow open pit resource, the first resource away
from the Leprechaun Gold Deposit, represented a discovery cost of
approximately $8 per ounce.
- Prospecting and trenching programs carried out in the Sprite
and Victory NE zones encountered abundant quartz-tourmaline-pyrite
("QTP") veining similar to that found in the Leprechaun Pond and
Victory Gold Deposits and identified a number of priority targets
for future drilling.
- 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 nine months ended September 30,
2013 and 2012 are summarized below.
|
Three months
ended
September 30 |
Nine months
ended
September 30 |
|
2013 |
2012 |
2013 |
2012 |
|
$ |
$ |
$ |
$ |
Expenses: |
|
|
|
|
Exploration expenses |
117,762 |
67,152 |
135,731 |
418,628 |
General and administrative expenses |
218,661 |
613,281 |
1,101,561 |
1,350,394 |
Interest income |
(5,503) |
(10,248) |
(25,395) |
(43,402) |
Unrealized loss on warrant derivative
investments |
- |
21,159 |
3,208 |
103,909 |
Foreign exchange loss |
- |
85 |
568 |
901 |
Loss before taxes |
330,920 |
691,429 |
1,215,673 |
1,830,430 |
This press release should be read in conjunction
with Marathon's condensed interim consolidated financial statements
for the three and nine months ended September 30, 2013 and the related Management's
Discussion and Analysis, both of which are available on
www.sedar.com.
About the Valentine Lake Project
The Valentine Lake property, owned 100% by
Marathon Gold Corporation, hosts two well defined gold deposits
with NI 43-101 complaint resources: the Leprechaun Gold Deposit and
the Victory Gold deposit. The Leprechaun Gold Deposit is located
near the south-western end of the Valentine Lake property, and
the Victory Gold deposit is located 13 kilometers along strike to
the north-east. 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 0.5 kilometers southwest along strike from
the current resource boundary of the Leprechaun Gold Deposit. These
gold occurrences form part of a 23 kilometers long, highly
prospective gold-bearing mineralized corridor focused along the
Valentine Lake thrust fault.
About the Leprechaun Gold Deposit
The Leprechaun Gold Deposit has a NI 43-101
compliant Open Pit and Underground Resource (refer to August 1, 2013 news release). The Open Pit
Resource is Measured 3.5 million tonnes at 2.8 g/t Au containing
247,000 oz Au, and Indicated 6.2 million tonnes at 2.07 g/t Au
containing 412,000 oz Au, and Inferred 1.2 million tonnes at 1.82
g/t Au containing 71,000 oz Au. The Underground Resource is
Measured 108,000 tonnes at 4.83 g/t Au containing 17,000 oz Au, and
Indicated 764,000 tonnes at 4.05 g/t Au containing 100,000 oz Au,
and Inferred 349,000 tonnes at 6.13 g/t Au containing 69,000 oz Au.
This Resource was estimated using a 0.5 g/t Au minimum cut-off for
the open pit resources and a 2.0 g/t Au minimum cut-off for the
underground resources. The Leprechaun Gold Deposit is open at depth
and along strike.
About the Victory Gold Deposit
The Victory Gold Deposit has a first ever NI
43-101 compliant Open Pit Resource (refer to August 1, 2013 news release). The Open Pit
Resource is Indicated 761,000 tonnes at 1.67 g/t Au
containing 41,000 oz Au, and Inferred 199,000 tonnes at 1.47 g/t Au
containing 9,000 oz Au. This Resource was estimated using a 0.5 g/t
Au minimum cut-off. The Victory Gold Deposit is open at depth and
along strike.
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, results or otherwise.
SOURCE Marathon Gold Corporation