Marathon Announces 2010 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, 2010.

At March 31, 2010, Marathon had cash and short-term investments of $9.4 million, compared to $10.8 million at December 31, 2009, with operations and project spending in the period amounting to $0.2 million and $1.2 million respectively.

Exploration and development activity in the period ended March 31, 2010 was focused on:

    
      -  continuing to progress the Marathon PGM-Cu Project toward the
         acquisition of mining permits;
      -  completing a drilling program at Geordie Lake and developing a
         revised mineral resource estimate for the deposit; and
      -  completing a highly successful initial drilling program at the
         Leprechaun Gold Deposit within the Valentine Lake property, which
         has led to a planned summer program of 8,000 meters of drilling and
         ground work throughout the Valentine Lake property.

    Marathon's current cash resources are adequate to fund its general and
administrative expenses, exploration, and permitting activities through 2010.

    Operational Highlights

    Marathon area properties

      -  Continuing to make progress on permitting activities at the Marathon
         PGM-Cu project, with submission of the environmental assessment
         expected in the third quarter of 2010.
      -  Completing a winter drilling program at Geordie Lake and
         incorporating the results of this work in a new mineral resource
         estimate on the property, which resulted in total combined measured
         and indicated resources for the Marathon PGM-Cu and Geordie Lake
         properties of 147 million tonnes grading 1.0 g/t PGM's and gold and
         0.27% copper, representing an in-situ resource of 4.9 million ounces
         of PGM's and gold and 882 million pounds of copper.

    Valentine Lake property, central Newfoundland

      -  Completing the first phase of an initial drilling program of
         33 holes over 4,000 meters at the Leprechaun Gold Deposit, part of
         the Valentine Lake property optioned in December 2009 from Mountain
         Lake Resources and host to an existing inferred mineral resource of
         443,000 ounces of gold. The results of this work exceeded
         expectations and returned numerous occurrences of visible gold and
         several wide, high grade intercepts, including 38.3 g/t over
         9 meters.
      -  On May 13, 2010, we announced our plans for the next phase of work
         at Valentine Lake, including:
         -  a drilling program starting in May 2010 and focused on the
            Leprechaun Gold Deposit, and
         -  a detailed IP survey, followed by trenching and drilling, to be
            performed along the 2 km long structure hosting the Leprechaun
            Gold Deposit and the Sprite prospect, as well as the Valentine
            East prospect located 13 km along strike to the northeast.

    Financial Highlights

    Marathon's losses before tax for the periods ended March 31, 2010 and 2009
are set out below.

                                                              2010      2009
    -------------------------------------------------------------------------
                                                                 $         $
    Exploration expenses                                     5,601   172,238
    -------------------------------------------------------------------------

    Operating expenses:
      General and administrative expenses                  437,438   470,431
      Depreciation                                          37,126    27,523
      Stock based compensation                                   -    41,156
    -------------------------------------------------------------------------
                                                           474,564   539,110
    -------------------------------------------------------------------------

    Operating loss                                         480,165   711,348
    -------------------------------------------------------------------------

    Interest income                                        (10,484)  (40,016)
    Foreign exchange loss                                        -       104
    -------------------------------------------------------------------------

    Loss before income taxes                               469,681   671,436
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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 2010 reflects Marathon's practice of capitalizing exploration costs on properties with existing NI43-101 compliant mineral resources, where virtually all of the Company's efforts have been focused this year.

This press release should be read in conjunction with Marathon's unaudited interim consolidated financial statements for the period ended March 31, 2010 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 is exploring resource development potential in the immediate vicinity of the Marathon deposit to expand mine life of the planned large tonnage, open pit mining operation. The Marathon deposit is one of the largest PGM-Cu reserves in Canada and is expected to grow with development of additional nearby resources. Marathon's optimized P+P reserve of 91.45 million tonnes grading 0.832 g/t Pd, 0.237 g/t Pt, 0.085 g/t Au, 0.247% Cu and 1.44 g/t Ag, contains 2.44 million ounces of Pd, 696,000 ounces of Pt, 251,000 ounces of Au, 497 million lbs of Cu and 4.23 million ounces of Ag. The Geordie Lake Deposit, located 14km northwest of the Marathon PGM-Cu project, hosts a measured and indicated resource of 32.42 million tonnes grading 0.61g/t Pd, 0.04g/t Pt, 0.05g/t Au, 2.93g/t Ag, and 0.37% Cu, containing 641,000 ounces of Pd, 39,500 ounces Pt, 49,700 ounces Au, 3,057,800 ounces Ag, and 264 million pounds of Cu.

Marathon also has development and exploration stage properties in southeastern Manitoba and western Newfoundland, respectively. Marathon's management plans to build on its experience through the advancement of its properties and by examining other strategic opportunities. Mountain Lake has a 30% interest in the Valentine Lake Gold Property with an option to acquire the remaining 70% interest from Richmont Mines Inc. and a subsequent sub-option and joint venture agreement whereby Marathon PGM Corp. can earn a 50% in the property.

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, 2009.

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

SOURCE MARATHON PGM CORPORATION

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

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890