Marathon Gold Corporation (“Marathon” or the “Company”;
TSX: MOZ) is pleased to announce that the ongoing
exploration program currently underway at the Valentine Gold
Project in central Newfoundland (the “Project”) will be expanded to
include an additional 8,000 metres of dedicated infill drilling at
the new Berry Zone (Figure 1). The aim of this new drilling will be
to obtain sufficient density of data to support the zone’s first
mineral resource estimate, expected by early next year.
Matt Manson, President and CEO, commented: “The
Valentine Gold Project mine plan, which forms the basis of our
ongoing Feasibility Study and Environmental Assessment, is based on
open pit mining of the Marathon and Leprechaun Deposits over a
12-year mine life. This is the project we intend to develop. Since
late 2019, our exploration drill program has been focussed on new
discovery, with a view to future, near-surface mineral resources
becoming available by Year-9 of the mine plan. This program
involves high risk greenfield exploration in areas that are
prospective for gold mineralization but previously under-tested. By
the end of November we will have drilling information for the first
time along the full 6 kilometres of the Sprite Corridor between
Leprechaun and Marathon, with at first one, and shortly two, drill
rigs working steadily on broad step-out holes along the contact of
the Valentine Lake Shear Zone. During the course of this program it
has become clear that the new Berry Zone, located centrally within
the Sprite Corridor and immediately adjacent to the proposed
location of our mill, is standing out as an area of high priority.
With today’s news, we will now be committing a third exploration
drill rig to focus on Berry infill drilling. If successful, this
program will yield the first mineral resource estimate to emerge
from this discovery-oriented campaign.”
The drilling conducted to date at the Berry Zone
has outlined extensive gold mineralization contained within
shallowly southwest dipping, en-echelon stacked
Quartz-Tourmaline-Pyrite-Gold (“QTP-Au”) veins. In a manner now
characteristic of the Project, these veins form steeply northwest
plunging “Main Zone” envelopes on the hanging-wall (NW) side of the
Valentine Lake Shear Zone. Mineralization of this type has now been
intersected over a 650 metre strike extent.
Recent notable drill intersections at Berry,
from holes oriented either steeply down through Main Zone QTP-Au
stacking towards the northwest or oblique across Main Zone
mineralization towards the southeast, include:
- 3.33 g/t Au over 120.0 metres and 3.37 g/t Au over 36.0 metres
(VL-20-823 and VL-20-824 respectively, news release dated July 22,
2020);
- 2.96 g/t Au over 47 metres and 2.23 g/t Au over 30 metres
(VL-20-835 and VL-20-834 respectively, news release dated August
17, 2020);
- 2.24 g/t Au over 55.0m (VL-20-799, news release dated March 2,
2020);
- 7.60 g/t Au over 22.0 metres (VL-19-786, news release dated
December 18, 2019); and
- 8.06 g/t Au over 14.0 metres (VL-20-806, news release dated
April 15, 2020).
All quoted intersections comprise uncut gold
assays in core lengths. Please refer to the cited news releases for
details on quality control and assurance procedures, estimated true
thicknesses and the application of cut-offs.
The Berry infill drill program will comprise
8,000 metres in approximately 55 holes, with a view to obtaining an
average drill density of 25 metres over a strike length of 450
metres (Figure 2). The budget allocated to this new program is
C$1.3 million, bringing the total expenditure for exploration at
the Valentine Gold Project in 2020 to C$10.2 million and the total
meterage of exploration drilling to be completed to 52,000 metres.
An additional 3,000 metres of condemnation drilling has already
been completed, and drilling for geotechnical, metallurgical, and
hydrogeological studies is ongoing or scheduled.
The Berry infill program will commence
immediately.
Figure 1: Location Map, Valentine Gold Project
is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/237169c6-5a27-422d-8846-06e31f6dec0b.
(See News Release Dated February 3, 2020 for a Description of the
2020 Exploration Drill Program).
Figure 2: Outline of the Berry
Zone Infill Drill Program is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/c9a3e21b-1e1c-4275-bb1c-612d4831aaaa
Qualified Person
Disclosure of a scientific or technical nature
in this news release was prepared under the supervision of Nicholas
Capps, P.Geo. (NL), Project Manager for exploration at the
Valentine Gold Project. Exploration data quality assurance and
control for Marathon is under the supervision of Jessica Borysenko,
P.Geo (NL), GIS Manager for Marathon Gold Corporation. Both Mr.
Capps and Ms. Borysenko are qualified persons under National
Instrument (“NI”) 43-101.
Acknowledgments
Marathon acknowledges the financial support of
the Junior Exploration Assistance Program, Department of Natural
Resources, Government of Newfoundland and Labrador.
About Marathon
Marathon (TSX:MOZ) is a Toronto based gold
company advancing its 100%-owned Valentine Gold Project located in
the central region of Newfoundland and Labrador, one of the top
mining jurisdictions in the world. The Project comprises a
series of four mineralized deposits along a 20-kilometre system. An
April 2020 Pre-Feasibility Study outlined an open pit mining and
conventional milling operation over a twelve-year mine life with a
36% after-tax rate of return. The Project has estimated Proven
Mineral Reserves of 1.3 Moz (26.3 Mt at 1.52 g/t) and Probable
Mineral Reserves of 0.6 Moz (14.8 Mt at 1.23 g/t). Total Measured
Mineral Resources (inclusive of the Mineral Reserves) comprise 1.9
Moz (31.7 Mt at 1.86 g/t) with Indicated Mineral Resources
(inclusive of the Mineral Reserves) of 1.19 Moz (23.2 Mt at 1.60
g/t). Additional Inferred Mineral Resources are 0.96 Moz (16.77 Mt
at 1.78 g/t Au). Please see the Technical Report dated April 21,
2020 for further details and assumptions relating to the Valentine
Gold Project.
For more information, please
contact:
Matt MansonPresident & CEOTel: 416
987-0711mmanson@marathon-gold.com |
Hannes PortmannCFO & Business DevelopmentTel: 416
855-8200hportmann@marathon-gold.com |
Amanda MalloughSenior Associate, Investor RelationsTel: 416
855-8202amallough@marathon-gold.com |
To find out more information on Marathon Gold
Corporation and the Valentine Gold Project, please visit
www.marathon-gold.com.
Cautionary Statement Regarding
Forward-Looking Information
Certain information contained in this news
release, constitutes forward-looking information within the meaning
of Canadian securities laws (“forward-looking statements”). All
statements in this news release, other than statements of
historical fact, which address events, results, outcomes or
developments that Marathon expects to occur are 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”, “estimates”, “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. More particularly and without restriction, this news
release contains forward-looking statements and information about
Marathon’s intention to complete the Offering and the timing
thereof, economic analyses for the Valentine Gold Project, capital
and operating costs, processing and recovery estimates and
strategies, future exploration and mine plans, objectives and
expectations and corporate planning of Marathon, future feasibility
studies and environmental impact statements and the timetable for
completion and content thereof and statements as to management's
expectations with respect to, among other things, the matters and
activities contemplated in this news release.
Forward-looking statements involve known and
unknown risks, uncertainties and assumptions and accordingly,
actual results and future events could differ materially from those
expressed or implied in such statements. You are hence cautioned
not to place undue reliance on forward-looking statements. A
mineral resource that is classified as “inferred” or “indicated”
has a great amount of uncertainty as to its existence and economic
and legal feasibility. It cannot be assumed that any or part of an
“indicated mineral resource” or “inferred mineral resource” will
ever be upgraded to a higher category of mineral resource.
Investors are cautioned not to assume that all or any part of
mineral deposits in these categories will ever be converted into
proven and probable mineral reserves.
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.
Factors that could cause future results or events to differ
materially from current expectations expressed or implied by the
forward-looking statements include receipt of all necessary
regulatory approvals, completion of all conditions to closing of
the Offering, availability of financing to fund Marathon’s
exploration and development activities, the ability of the current
exploration program to identify and expand mineral resources,
operational risks in exploration and development for gold,
Marathon’s ability to realize the pre-feasibility study, delays or
changes in plans with respect to exploration or development
projects or capital expenditures, uncertainty as to calculation of
mineral resources, changes in commodity and power prices, changes
in interest and currency exchange rates, the ability to attract and
retain qualified personnel, inaccurate geological and metallurgical
assumptions (including with respect to the size, grade and
recoverability of mineral resources), changes in development or
mining plans due to changes in logistical, technical or other
factors, title defects, government approvals and permits, cost
escalation, changes in general economic conditions or conditions in
the financial markets, environmental regulation, operating hazards
and risks, delays, taxation rules, competition, public health
crises such as the COVID-19 pandemic and other uninsurable risks,
liquidity risk, share price volatility, dilution and future sales
of common shares, aboriginal claims and consultation, cybersecurity
threats, climate change, delays and other risks described in
Marathon’s documents filed with Canadian securities regulatory
authorities.
You can find further information with respect to
these and other risks in Marathon’s Amended and Restated Annual
Information Form for the year ended December 31, 2019 and other
filings made with Canadian securities regulatory authorities
available at www.sedar.com. Other than as specifically required by
law, Marathon undertakes 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.
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