TORONTO,
Aug. 14, 2014 /CNW/ - Marathon
Gold Corporation (MOZ-TSX) ("Marathon") announced today its
financial results for the three and six months ended June 30, 2014.
At June 30, 2014,
Marathon had $1.2 million in cash and $1.1 million in working capital. During the
period ended June 30, 2014,
Marathon completed three private
placements of common shares, units and flow through shares which
generated gross proceeds of $1,767,405. The proceeds of these
financings and Marathon's existing
cash reserves were used to fund a winter drilling program and
subsequently a successful program of focused trenching and
prospecting in the Rainbow, Sprite and Marathon Areas, following up
on magnetic lows interpreted as splays off the Valentine Lake
Thrust Fault. The results of this work showed a high level of
correlation between gold mineralization and the presence of
magnetic lows and suggested that the extent of mineralization at
Valentine Lake ranges considerably farther from the main thrust
fault than was previously thought.
Subsequent to June 30,
2014, Marathon completed an
additional private placement raising proceeds of $375,000 and entered into a bought deal private
placement of units and flow through shares which is expected to
close on August 21, 2014 and to raise
gross proceeds of approximately $4.4
million. Marathon has
resumed drilling at Valentine Lake to follow up on drill targets in
the Rainbow and Sprite Zones identified during the spring trenching
program.
Operating results:
Marathon's
results of operations for the three and six months ended
June 30, 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.
|
|
|
|
|
|
|
Three months
ended
June 30 |
|
Six months ended
June 30 |
|
2014 |
2013 |
|
2014 |
2013 |
|
$ |
$ |
|
$ |
$ |
Expenses: |
|
|
|
|
|
Exploration expenses |
5,186 |
16,692 |
|
5,186 |
17,969 |
General and administrative expenses |
237,186 |
366,685 |
|
584,955 |
882,900 |
Interest income |
(1,491) |
(8,500) |
|
(4,156) |
(19,892) |
Other finance expense |
- |
- |
|
1,903 |
- |
Unrealized loss on warrants |
- |
519 |
|
- |
3,208 |
Foreign exchange (gain) loss |
(217) |
515 |
|
(172) |
568 |
Loss before taxes |
240,664 |
345,911 |
|
587,716 |
884,753 |
This press release should be read in conjunction
with Marathon's unaudited
condensed interim consolidated financial statements for the three
and six months ended June 30, 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