Marathon Announces 2009 Financial Results
TORONTO, March 26 /CNW/ - Marathon PGM Corporation ("Marathon" or the "Company") announced today its financial results for the year ended December 31, 2009. At December 31, 2009, Marathon had cash and short-term investments of $10.8 million, compared to $16.3 million at December 31, 2008, with operations and project spending in the period amounting to $2.5 million and $4.3 million respectively. Exploration and development plans for 2009, particularly for the Marathon PGM-Cu project, were focused on moving toward the acquisition of mining permits and the completion of the updated feasibility study on the Marathon PGM-Cu project. Marathon's current cash resources are adequate to fund its general and administrative expenses, exploration, and permitting activities through 2010.
Operational Highlights
Marathon area properties
- Completing a revision of the feasibility study on the Marathon
PGM-Cu project, which:
- established proven and probable reserves of 91.4 million tonnes
containing a total of 3.4 million ounces of PGMs and gold,
497 million pounds of copper, and 4.2 million ounces of silver,
an after-tax net present value of $251 million, and an
after-tax internal rate of return of $17%,
- extended the expected mine life from 10 to 12 years, and
- reduced the expected life-of-mine strip ratio from 3.54:1
to 2.88:1
- Completing the purchase of a 100% interest in the Bamoos property
from Benton Resources, subject to a net smelter returns royalty.
- Completing a review of historical drilling and surface data and
refinements of the geological model associated with the Geordie Lake
Deposit, which identified a target area with potential
mineralization at better-than-average grades.
Bird River Joint Venture, southeastern Manitoba
- Completing a winter drilling program which extended higher-grade
nickel-copper and copper-zinc-silver mineralization identified in
2008.
Valentine Lake property, central Newfoundland
- Completing an option and joint venture agreement with Mountain Lake
Resources Inc. under which we are earning a 50% interest in the
Valentine Lake gold property. A successful initial 33-hole drilling
program completed in the first quarter of 2010 at the Leprechaun
Deposit, host to a 443,000 ounce NI 43-101 compliant inferred gold
resource, returned frequent intercepts of visible gold and expanded
the boundaries of the mineralization up dip and along strike,
intersecting near-surface mineralization and multiple zones.
Financial Highlights
Marathon's losses before tax for the quarters and years ended December 31,
2009 and 2008 are set out below.
Three months ended Year ended
December 31 December 31
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2009 2008 2009 2008
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$ $ $ $
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Exploration expenses 5,745 332,495 450,169 4,915,044
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Operating expenses
General and administrative
expenses 379,931 380,528 1,738,855 1,910,179
Depreciation 45,581 23,081 129,114 88,003
Stock based compensation 334,072 167,732 529,019 484,705
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759,584 571,341 2,396,988 2,482,887
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Operating loss 765,329 903,836 2,847,157 7,397,931
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Interest income (28,543) (131,656) (103,742) (564,117)
Foreign exchange loss 1,550 1,414 2,043 2,576
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Loss before income taxes 738,336 773,594 2,745,458 6,836,390
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Marathon's accounting policy is to capitalize property acquisition and exploration costs on its properties once a mineral resource estimate has been completed. The decrease in exploration expenses in 2009 reflects both an overall decrease in exploration activity and the capitalization of $0.6 million of exploration costs related to the Bird River Joint Venture, compared to $4.1 million expensed in 2008.
This press release should be read in conjunction with Marathon's audited consolidated financial statements for the year ended December 31, 2009 and the related Management's Discussion and Analysis, both of which are available on www.sedar.com. Marathon's Web site may be found at http://www.marathonpgm.com.
About Marathon
Marathon is exploring resource development potential in the immediate vicinity of the Marathon deposit to expand mine life of the planned large tonnage, open pit mining operation. The Marathon deposit is one of the largest PGM-Cu reserves in Canada and is expected to grow with development of additional nearby resources. Marathon's optimized P+P reserve of 91.45 million tonnes grading 0.832 g/t Pd, 0.237 g/t Pt, 0.085 g/t Au, 0.247% Cu and 1.44 g/t Ag, contains 2.44 million ounces of Pd, 696,000 ounces of Pt, 251,000 ounces of Au, 497 million lbs of Cu and 4.23 million ounces of Ag. Marathon also has development and exploration stage properties in southeastern Manitoba and western Newfoundland, respectively. Marathon's management plans to build on its experience through the advancement of its properties and by examining other strategic opportunities. Mountain Lake has a 30% interest in the Valentine Lake Gold Property with an option to acquire the remaining 70% interest from Richmont Mines Inc. and a subsequent sub-option and joint venture agreement whereby Marathon PGM Corp. can earn a 50% in the property.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to the Company, 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 Management's Discussion and Analysis for the year ended December 31, 2009. 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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
On Behalf of Marathon PGM
"Phillip C. Walford"
Phillip C. Walford
President, Chief Executive Officer
[email protected]
416-987-0711
%SEDAR: 00020574E
For further information: David Leng, P.Geo.: [email protected], Tel: (905) 537-5377, Fax: (415) 861-1925
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