Marathon Announces 2009 Q2 Financial Results



    TORONTO, Aug. 12 /CNW/ - Marathon PGM Corporation ("Marathon" or the
"Company") announced today its financial results for the period ended June 30,
2009.
    At June 30, 2009, Marathon had cash and short-term investments of $12.7
million, compared to $16.3 million at December 31, 2008, with operations and
project spending in the period amounting to $1.3 million and $2.1 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 the revision of the feasibility
study following on from successful mini pilot-plant tests earlier in the year,
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 May 2009, Marathon now owns a land package encompassing close to
8,000 hectares with total measured and indicated resources of 4.7 million
ounces of PGM's and gold, 8.9 million ounces of silver and 895 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

    -   Completing successful mini pilot-plant metallurgical testwork, which
        demonstrated improved recoveries of PGM and gold from the levels used
        in the 2008 feasibility study.
    -   Finalizing an agreement with Benton Resources to acquire the Bamoos
        property.
    -   Commencing a revision of the feasibility study, with completion
        expected in the fourth 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.

    Financial Highlights

    Marathon's loss for the period ended June 30, 2009 is set out below.

                      Three months ended June 30    Six months ended June 30
    -------------------------------------------------------------------------
                              2009          2008          2009          2008
    -------------------------------------------------------------------------
                                 $             $             $             $
    Exploration expenses   194,772     1,040,585       367,010     2,365,026
    -------------------------------------------------------------------------
    Operating expenses:
      General and
       administrative
       expenses            548,073       592,443     1,018,504     1,147,212
      Depreciation          27,576        27,752        55,099        47,190
      Stock based
       compensation        153,791       269,198       194,947       289,703
    -------------------------------------------------------------------------
                           729,440       889,393     1,268,550     1,484,105
    -------------------------------------------------------------------------
    Operating loss         924,212     1,929,978     1,635,560     3,849,131
    Interest income        (20,929)     (168,886)      (60,945)     (282,390)
    Foreign exchange gain
     (loss)                    432         1,037           536           533
    Non-controlling interest     -            14             -            14
    -------------------------------------------------------------------------
    Loss before income
     taxes                 903,715     1,762,143     1,575,151     3,567,288
    Future income tax
     recovery                    -      (400,229)       (3,365)     (881,053)
    -------------------------------------------------------------------------
    Loss and comprehensive
     loss for the period   903,715     1,361,914     1,571,786     2,686,235
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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 reflects both the
overall decrease in exploration activity and the capitalization of $0.5
million of exploration costs related to the Bird River Joint Venture, compared
to $2.0 million expensed in 2008.
    This press release should be read in conjunction with Marathon's
unaudited interim consolidated financial statements for the period ended June
30, 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
    

    %SEDAR: 00020574E




For further information:

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

Organization Profile

MARATHON PGM CORPORATION

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