TORONTO, March 13 /CNW/ - (MAR:TSX): Marathon PGM Corporation ("Marathon"
or "the Company") is pleased to announce that it has completed the Option and
Joint Venture Agreement on the Bamoos Lake - Claw Lake - Four Dams ("BCF")
Property with Benton Resources (BTC:TSX.v).
- the planned Main Zone pit outline has been expanded by approximately
200 m to the north
- this added resource, as well as the definition of additional resources
encountered in the in-fill drilling on the Main Zone has the potential
to add years to the life of mine, or to encourage a higher through-put
rate than presently being considered
- Marathon now expects the definitive feasibility study to be completed
by Q3 of 2008
- the BCF Property adds 4 mineralized zones and a large untested area
with potential magnetite-hosted PGM mineralization
"We have just increased the mine life by eliminating the boundary pillar
and adding tonnage to the Main Zone. This is a win-win situation for both
Marathon and Benton as we continue to build Canada's next PGM mining
district," commented Phillip Walford, Marathon's President and CEO.
BCF Property Drilling
An 8-10,000 m drilling program will commence on the BCF property at the
north end of the Marathon Main Zone within the next two weeks. The objectives
are to create a resource by a combination of in-fill drilling and exploration
holes along strike and down dip of known mineralization. This new resource
will be added to the Main Zone resource as part of the ongoing definitive
feasibility study. An additional program of prospecting, trenching and channel
sampling will begin over the Magnetite and Claw Lake zones in May. Exploration
of the Magnetite Zones on the BCF Property is of particular interest as it is
on-strike from Marathon's PGM-bearing Magnetite Zones to the south. No
resources have been developed on the BCF Property.
Marathon has completed a total of 11 holes comprising 2,600 metres so far
in the 2008 drilling season. This program is specifically designed to close
drilling gaps and increase measured and indicated resources. Many of these
gaps are in fact are more strongly mineralized than interpreted in the last
resource estimation to the point of surpassing the modeled expectations.
Drilling to date has been very positive, as multiple intersections of the high
grade W-horizon have been discovered outside of the current resource pitshell.
Under the terms of the OJVA, Marathon has the option to earn a 60%
participating interest in the BCF Property by (i) issuing Benton 120,000
common shares on signing of the OJVA, subject to regulatory approval; (ii)
work expenditures of $1.5 million per year during the first four years of the
OJVA and an additional $2 million on or before the fifth anniversary and;
(iii) making cash payments of $500,000 per year on or before the anniversary
date of the OJVA for the first three years (for a total $1.5 million).
During the earn-in period, all work will be supervised and carried out by
Marathon. After Marathon has issued the 120,000 shares, made the $1.5 million
cash payments and spent the $8 million, Marathon will "earn in" to 60% of the
During the earn-in period Marathon may mine up to 200 metres north of its
property into the BCF Property. If Marathon mines any part of the BCF Property
prior to the JV, Marathon will receive all revenue and (i) pay all costs,
(ii) pay all royalties due from the BCF Property, and (iii) pay an additional
2% NSR royalty to Benton.
After the JV is formed, Marathon will be operator and any ore that is
discovered on the BCF property will be mined and processed by Marathon at its
facilities. Under the JV agreement, Marathon will charge the JV for all
direct, indirect and overhead costs including a charge to recover its capital
costs as well as a 4% management fee.
Phillip Walford, P.Geo., President and CEO is Marathon's Qualified Person
in compliance with National Instrument 43-101 with respect to this release.
Mr. Walford has reviewed the contents for accuracy and has approved this press
release on behalf of Marathon.
About Marathon PGM Corporation
Marathon is in the process of completing a definitive feasibility study
on the Marathon PGM-Cu deposit. 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 PGM and base metal opportunities within Canada.
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 are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. 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, 2006. Circumstances or management's estimates or opinions
could change, and management disclaims any obligation to revise or update
forward-looking statements, whether for new information, future events or
otherwise. The reader is cautioned not to place undue reliance on
On Behalf of Marathon PGM:
"Phillip C. Walford"
Phillip C. Walford, P.Geo.
President, Chief Executive Officer
For further information:
For further information: David Leng, P.Geo: Tel: (416) 849-3432, Fax:
(416) 861-1925, firstname.lastname@example.org