Marathon Gold Reports 2011 Third Quarter Financial Results

CNW Telbec | Mining/Metals | November 11, 2011 | 6:50 pm Precious Metals Canada Europe Gold 

TORONTO, Nov. 11, 2011 /CNW/ – Marathon Gold Corporation (TSX: MOZ) (“Marathon”) announced today its financial results for the three and nine months.

 

At September 30, 2011 the Company had $3,200,000 in cash.

Highlights:

  • Completed the earn-in for a 50% interest in the Valentine Lake Project by making a payment of $3,000,000 to Richmont Mines Inc., triggering the formation of the Valentine Lake 50/50 joint venture with Mountain Lake Resources Inc.
  • Completed an updated NI 43-101 Resource Estimate on the Valentine Lake Project based on drilling results from the 2010 drilling campaign, which included Measured and Indicated Resources of 3.3 million tonnes grading 2.6 g/t gold, representing a total of 277,000 ounces of gold, and an additional Inferred Resource of 4.4 million tonnes grading 2.0 g/t gold, representing an Inferred Resource of 285,000 ounces.
  • Completed a 2011 drill program at the Valentine Lake Project, focused on expanding the existing Resource at Leprechaun Gold Deposit, and preliminary drilling at the Valentine East and Sprite Zones, including 25,500 meters of drilling.  An updated NI 43-101 compliant Resource Estimate incorporating the results of the 2011 drilling program is expected to be completed either in the fourth quarter 2011 or early in 2012.
  • Funded US $2,000,000 in option payments to Golden Chest LLC stipulated under the operating agreement between Marathon and New Jersey Mining Company, required to complete the earn-in for Marathon’s 50% interest in the Golden Chest Mine.
  • Closed a private placement of flow-through common shares in March 2011 of 2,528,500 flow-through shares with gross proceeds of $4,551,300.
  • Completed initial prospecting and ground exploration programs at the Finger Pond and Barachois Brook exploration stage properties in Newfoundland.

Operating highlights:

Marathon’s losses for the three and nine months ended September 30, 2011 and 2010 are summarized below.

Three months ended
September 30		 Nine months ended
September 30
2011 2010 2011 2010
$ $ $ $
Expenses:
Exploration expenses 175,364 6,027 214,766 11,624
General and administrative expenses 403,071 180,019 1,263,819 868,972
Total expenses 578,435 186,046 1,478,585 880,596
Interest income (10,443) (8,794) (23,826) (22,313)
Unrealized loss on warrant derivatives 92,229 – 201,231 –
Foreign exchange loss (gain) 2,308 (186) 1,931 245
Loss for the period 662,529 177,066 1,657,921 858,528

This press release should be read in conjunction with Marathon’s unaudited condensed Interim Consolidated Financial Statements for the period ended September 30, 2011 and the related Management’s Discussion and Analysis, both of which are available on www.sedar.com.

About Marathon Gold Corporation

Marathon Gold Corporation is a North American gold resource development company, with projects located in the mining friendly province of Newfoundland and Labrador, and a project in the prolific Coeur d’Alene Mining District of Idaho.  Marathon has a project pipeline consisting of early stage exploration to advanced resource development projects. Marathon is continually evaluating new gold resource development projects of merit that are located within the Americas.  Marathon’s focused and low-cost approach to exploration and resource development has an established record of delivering rapid growth.  For more information visit: www.marathon-gold.com

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