Marathon Announces 2010 Q1 Financial Results
TORONTO, May 14 /CNW/ - Marathon PGM Corporation ("Marathon" or the "Company") announced today its financial results for the period ended March 31, 2010.
At March 31, 2010, Marathon had cash and short-term investments of $9.4 million, compared to $10.8 million at December 31, 2009, with operations and project spending in the period amounting to $0.2 million and $1.2 million respectively.
Exploration and development activity in the period ended March 31, 2010 was focused on:
- continuing to progress the Marathon PGM-Cu Project toward the
acquisition of mining permits;
- completing a drilling program at Geordie Lake and developing a
revised mineral resource estimate for the deposit; and
- completing a highly successful initial drilling program at the
Leprechaun Gold Deposit within the Valentine Lake property, which
has led to a planned summer program of 8,000 meters of drilling and
ground work throughout the Valentine Lake property.
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
- Continuing to make progress on permitting activities at the Marathon
PGM-Cu project, with submission of the environmental assessment
expected in the third quarter of 2010.
- Completing a winter drilling program at Geordie Lake and
incorporating the results of this work in a new mineral resource
estimate on the property, which resulted in total combined measured
and indicated resources for the Marathon PGM-Cu and Geordie Lake
properties of 147 million tonnes grading 1.0 g/t PGM's and gold and
0.27% copper, representing an in-situ resource of 4.9 million ounces
of PGM's and gold and 882 million pounds of copper.
Valentine Lake property, central Newfoundland
- Completing the first phase of an initial drilling program of
33 holes over 4,000 meters at the Leprechaun Gold Deposit, part of
the Valentine Lake property optioned in December 2009 from Mountain
Lake Resources and host to an existing inferred mineral resource of
443,000 ounces of gold. The results of this work exceeded
expectations and returned numerous occurrences of visible gold and
several wide, high grade intercepts, including 38.3 g/t over
9 meters.
- On May 13, 2010, we announced our plans for the next phase of work
at Valentine Lake, including:
- a drilling program starting in May 2010 and focused on the
Leprechaun Gold Deposit, and
- a detailed IP survey, followed by trenching and drilling, to be
performed along the 2 km long structure hosting the Leprechaun
Gold Deposit and the Sprite prospect, as well as the Valentine
East prospect located 13 km along strike to the northeast.
Financial Highlights
Marathon's losses before tax for the periods ended March 31, 2010 and 2009
are set out below.
2010 2009
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$ $
Exploration expenses 5,601 172,238
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Operating expenses:
General and administrative expenses 437,438 470,431
Depreciation 37,126 27,523
Stock based compensation - 41,156
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474,564 539,110
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Operating loss 480,165 711,348
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Interest income (10,484) (40,016)
Foreign exchange loss - 104
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Loss before income taxes 469,681 671,436
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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 2010 reflects Marathon's practice of capitalizing exploration costs on properties with existing NI43-101 compliant mineral resources, where virtually all of the Company's efforts have been focused this year.
This press release should be read in conjunction with Marathon's unaudited interim consolidated financial statements for the period ended March 31, 2010 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. The Geordie Lake Deposit, located 14km northwest of the Marathon PGM-Cu project, hosts a measured and indicated resource of 32.42 million tonnes grading 0.61g/t Pd, 0.04g/t Pt, 0.05g/t Au, 2.93g/t Ag, and 0.37% Cu, containing 641,000 ounces of Pd, 39,500 ounces Pt, 49,700 ounces Au, 3,057,800 ounces Ag, and 264 million pounds of Cu.
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
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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