TORONTO, March 27, 2014 /CNW/ - Marathon Gold
Corporation (MOZ-TSX) ("Marathon") announced today its
financial results for the year ended December 31, 2013.
Highlights:
- At December 31, 2013,
Marathon held $1.2 million in cash and working capital.
Management reduced headcount during the year and implemented cuts
to management and staff salaries, director remuneration and other
administrative expenditures to reduce non-exploration
spending.
- Marathon's 2013 drilling
program was completed in the first quarter of 2013 and drove an
initial mineral resource estimate at the Victory Zone (formerly
known as the Valentine East Hill Zone) and an updated resource at
the Leprechaun Gold Deposit, both of which were completed in the
third quarter of 2013. Subsequently, the work program at
Valentine Lake was refocused to concentrate on the completion of a
technical study of the structural geology of the property and
prospecting, trenching and mapping programs in areas of the
property other than the Leprechaun Gold Deposit to identify
priority targets for future drilling. This resulted in
the discovery of a number of priority targets for drilling, some of
which have been addressed in Marathon's successful 2014 winter drilling
program in the Victory and Sprite areas.
- Marathon increased its share
of the Golden Chest project during May, June and July 2013 from 50% to 52.22%, acquiring effective
control of this asset.
Operating results:
Marathon's
results of operations for the three and twelve months ended
December 31, 2013 and 2012 are
summarized below.
|
|
|
|
Three months
ended
December 31 |
|
|
|
Year ended
December 31 |
|
|
|
|
2013 |
|
2012 |
|
|
|
2013 |
|
2012 |
|
|
|
|
$ |
|
$ |
|
|
|
$ |
|
$ |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Exploration expenses |
|
|
|
2,054 |
|
8,971 |
|
|
|
137,785 |
|
427,599 |
General and administrative expenses |
|
|
|
257,061 |
|
462,468 |
|
|
|
1,358,622 |
|
1,812,862 |
Other finance expense |
|
|
|
- |
|
9,356 |
|
|
|
- |
|
9,356 |
Interest income |
|
|
|
(3,655) |
|
(5,118) |
|
|
|
(29,050) |
|
(48,520) |
Unrealized loss on warrant investments |
|
|
|
- |
|
288,607 |
|
|
|
3,208 |
|
392,516 |
Foreign exchange loss |
|
|
|
- |
|
884 |
|
|
|
568 |
|
1,785 |
Loss before taxes |
|
|
|
255,460 |
|
765,168 |
|
|
|
1,471,133 |
|
2,595,598 |
This press release should be read in conjunction
with Marathon's audited
consolidated financial statements for the year ended December 31, 2013 and the related Management's
Discussion and Analysis, both of which are available on
www.sedar.com.
About Marathon Gold Corporation
Marathon is a
Toronto based gold resource
development company focused on the Valentine Lake property in
central Newfoundland. Marathon's mission is to rapidly move the
Valentine Lake project towards advanced exploration and
pre-development stages. For more information
visit: www.marathon-gold.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 compliant 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. These gold deposits form part of a 23 km
long, highly prospective gold-bearing mineralized corridor focused
along the Valentine Lake Thrust Fault.
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 containing 247,000 oz Au,
and Indicated 6.2 million tonnes 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 containing
17,000 oz Au, and Indicated 764,000 tonnes containing 100,000 oz
Au, and Inferred 349,000 tonnes containing 69,000 oz Au. As a
result of favorable drilling results in 2013 and 2014, the Sprite
Area, which is adjacent to the Leprechaun Gold Deposit, will be a
focus of continued exploration this year.
The Victory Gold Deposit (formerly Valentine East Hill) has an Open Pit Resource
(refer to August 1, 2013 news
release). The Open Pit Resource is Indicated 761,000 tonnes
containing 41,000 oz Au, and Inferred 199,000 tonnes containing
9,000 oz Au. Both deposits are open to expansion.
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