Marathon Announces 2009 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, 2009.
    At March 31, 2009, Marathon had cash of $14.4 million, compared to $16.3
million at December 31, 2008, with operations and project spending in the
period amounting to $0.7 million and $1.2 million respectively. Exploration
and development plans for 2009, particularly for the Marathon PGM-Cu project,
have been reduced to conserve cash while still moving toward the acquisition
of mining permits, and Marathon's cash resources are adequate to fund its
general and administrative expenses, exploration, and permitting activities.
    As a result of acquiring the Geordie Lake property in 2008 and the Bamoos
property in March 2009, Marathon now owns a land package encompassing close to
8,000 hectares with total measured and indicated resources of 3.9 million
ounces of PGM's and gold, 7.1 million ounces of silver and 779 million pounds
of copper, making up the vast majority of the known mineral resources on the
Coldwell PGM-copper complex in northern Ontario. The bulk of these resources
are not subject to any royalties.

    Operational Highlights

    
    Marathon area properties

    -   Commencing work on additional metallurgical testwork to improve
        recoveries, with the intent of revising the feasibility study later
        in 2009.
    -   Finalizing an agreement with Benton Resources to acquire the Bamoos
        property, which will close in the second quarter.

    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.

    Steel Mountain Complex and Baie Verte properties, western Newfoundland

    -   Completing a winter drilling program at Baie Verte, with a short
        drilling program at Steel Mountain expected to be completed in May
        2009.

    Marathon's loss for the period ended March 31, 2009 is set out below.

                                                             2009       2008
    -------------------------------------------------------------------------
                                                                $          $
    Exploration expenses                                  172,238  1,324,441
    -------------------------------------------------------------------------
    Operating expenses:
      General and administrative expenses                 470,431    554,769
      Depreciation                                         27,523     19,438
      Stock based compensation                             41,156     20,505
    -------------------------------------------------------------------------
                                                          539,110    594,712
    -------------------------------------------------------------------------
    Operating loss                                        711,348  1,919,153
    Interest income                                       (40,016)  (113,504)
    Foreign exchange gain (loss)                              104       (504)
    -------------------------------------------------------------------------
    Loss before income taxes                              671,436  1,805,145
    Future income tax recovery                             (3,365)  (480,824)
    -------------------------------------------------------------------------

    Loss and comprehensive loss for the period            668,071  1,324,321
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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 reflect both the
overall decrease in exploration activity and the capitalization of $0.4
million of exploration costs related to the Bird River Joint Venture, compared
to $1.2 million expensed in 2008.
    This press release should be read in conjunction with Marathon's
unaudited interim consolidated financial statements for the period ended March
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 completed a definitive feasibility study on the Marathon PGM-Cu
deposit in December of 2008. Marathon also has development and exploration
stage properties in southeastern Manitoba and western Newfoundland and
Labrador. Marathon's management plans to build on this focus through the
advancement of its properties, focusing on resource development, and by
examining other strategic precious metal opportunities within North America.

    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, 2008.
    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
    info@marathonpgm.com
    416-987-0711
    





For further information:

For further information: David Leng, P.Geo.: dleng@marathonpgm.com, Tel:
(905) 537-5377, Fax: (415) 861-1925

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MARATHON PGM CORPORATION

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