TORONTO, May 15, 2014 /CNW/ - Marathon Gold
Corporation (TSX: MOZ) ("Marathon") announced today its
financial results for the three months ended March 31, 2014.
At March 31, 2014, Marathon had $0.6
million in cash and $0.5
million in working capital. During the period ended
March 31, 2014, Marathon completed a private placement of flow
through shares which generated gross proceeds of $509,705. In April and May 2014, the Company completed two separate
private placements which generated gross proceeds of $1,109,500.
The proceeds of the flow through share financing completed in
the first quarter and Marathon's
existing cash reserves were used to fund a successful drilling
program at the Victory and Sprite areas in the winter of 2014,
which was completed in March 2014. With the drilling program
complete, Marathon plans to carry
out trenching to expand the new mineralized areas drilled during
the winter program and to resume its program of focused prospecting
and trenching to identify new drilling targets, especially in the
Sprite area which yielded the most favorable drilling results this
year.
Operating results:
Marathon's results of
operations for the three months ended March
31, 2014 and 2013 are summarized below and reflect ongoing
efforts by management to reduce administrative costs and minimize
exploration activity on its non-core mining properties.
|
|
2014
|
2013
|
|
|
$
|
$
|
Expenses:
|
|
|
|
Exploration
expenses
|
|
-
|
1,277
|
General and
administrative expenses
|
|
347,769
|
546,215
|
Interest
income
|
|
(2,665)
|
(11,392)
|
Other finance
expense
|
|
1,903
|
-
|
Unrealized loss on
warrants
|
|
-
|
2,689
|
Foreign exchange
loss
|
|
45
|
53
|
Loss before
taxes
|
|
347,052
|
538,842
|
This press release should be read in conjunction
with Marathon's unaudited
condensed interim consolidated financial statements for the three
months ended March 31, 2014 and 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