Marathon Gold Reports 2011 Third Quarter Financial Results

TORONTO, Nov. 11, 2011 /CNW/ - Marathon Gold Corporation (TSX: MOZ) ("Marathon") announced today its financial results for the three and nine months ended September 30, 2011.

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

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

For further information:

Marathon Gold Corporation

Jennie Guay
Investor Relations Manager
Tel: 1-416-987-0714

Profil de l'entreprise

Marathon Gold Corporation

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