Marathon PGM Corporation and Bird River Mines Inc., Announce an Option Agreement for the Ore Fault Property - Bird River Sill, SE Manitoba



    TORONTO, Oct. 11 /CNW Telbec/ - Marathon PGM Corporation (MAR -- TSX)
("Marathon" or the "Company") today announced that it has signed a binding
letter of intent with Bird River Mines Inc. (BRMI-CNQ) ("Bird River Mines")
for a joint venture to actively explore and earn an interest in the Ore Fault
and Lotus Claims ("Ore Fault Property", or "OFP") owned by Bird River Mines.
The OFP property is located in the Bird River Sill area of southeast Manitoba,
adjacent to Gossan Resources' Bird River Sill property, which is under option
to Marathon.
    "Our initial exploration activities at Bird River have yielded
encouraging results" commented Marathon's President and CEO Phillip Walford,
"and this option agreement will allow us to work with Bird River Mines in
developing additional resources east of the Page Zone. The Ore Fault Property
covers prospective ground between the Gossan property to the west and Mustang
property to the south and east. A drill program planned for the Gossan Bird
River Sill in early January is being expanded to include the Ore Fault
Property".
    Under the terms of the joint venture agreement, subject to Bird River
Mines shareholder approval and regulatory approvals, Marathon will have the
option to earn a 70% interest in the properties by making cash payments of
$250,000 to Bird River and carrying out, as operator, $600,000 in expenditures
to advance the properties by August 1, 2008.
    Once Marathon's interest in the properties reaches 70%, Marathon may
require Bird River Mines to sell to Marathon, Bird River Mines' remaining 30%
interest in the properties; and Bird River Mines may require Marathon to
purchase the remaining 30% interest in the properties for a purchase price of
$1,450,000, payable in cash or common shares of Marathon, at Marathon's
option, subject to regulatory approval. Bird River Mines shall retain a 1.0%
net smelter return royalty (the "NSR") in all minerals and metals extracted
from the properties. Marathon shall have a first right of refusal on any sale
by Bird River Mines of the NSR.
    Marathon will also make a firm commitment to $400,000 in exploration
expenditures and to pay a cumulative aggregate of $200,000 in cash by May 1,
2008. The first cash payment of $20,000 is due on signing of the definitive
joint venture and option agreement and $80,000 is to be paid upon obtaining
shareholder approval. If all required approvals are not obtained by Bird River
Mines on or before December 31, 2007, Bird River Mines shall issue 400,000 of
its common shares to Marathon, subject to regulatory approval.

    Ore Fault and Lotus Claims

    The Ore Fault Zone North Anomaly occurs from surface to a minimum depth
of 250 m, has a minimum strike length of 150 m and was drilled in two prior
exploration programs totalling 44 holes. The Ore Fault Zone does not have a
NI43-101 compliant resource at present. The best drill intersection was 11.1m
of 2.0% Ni, 0.54% Cu, 2.18% Zn and 151g/t silver. Platinum group metals are
present in the Ore Fault Zone, but evaluation of the PGM mineralization is
incomplete. The Ore Fault Zone coincides with strong magnetic and EM
geophysical anomalies. A second similar geophysical response (South Anomaly)
was outlined approximately 1 km to the south and is considered to be a
priority target, as Marathon has no record of it having been drilled.
    A further area of interest has been identified by Mustang Minerals
("Mustang") on its ground close to the southeast property boundary of the Ore
Fault claims. Two holes spaced 60 m apart drilled by Mustang hit 17.5 m of
0.81% copper and 30.7 m of 0.55% copper (see MUM release of 25-Sep-07). There
is no record of any exploration activity on the eastern Ore Fault Property
claims.

    (To see a map of the Bird River Property, go to
    http://www.marathonpgm.com/newsmaps/2007-31.jpg)

    
    Table 1: Significant Drill Hole Results(1), (2) and (3)
    -------------------------------------------------------------------------
    Hole    From         To   Thickness       Cu      Ni      Zn          Ag
              (m)        (m)         (m)      (%)     (%)     (%)       (g/t)
    -------------------------------------------------------------------------
    DDH4    18.9       40.0        18.5     0.89    0.46    1.06        23.3
    -------------------------------------------------------------------------
    DDH16    2.5       13.6        11.1     0.54     2.0     2.1       151.0
    -------------------------------------------------------------------------
    DDH21  143.3      179.6        36.3     0.29    0.63     n/d(3)    n/d(3)
    -------------------------------------------------------------------------

    (1) Assay results from: NI43-101 Technical Report on the Ore Fault
        Property, Prepared for Bird River Mines Inc., by Horst W. Petak,
        Ph.D., P.Eng., P.Geo. (available on sedar.com)

    (2) This work was completed prior to NI 43-101 being implemented.
        Marathon has not yet verified the historical values, and is not
        treating any of the values as part of a current mineral
        reserve/resource estimate and should not be unduly relied upon.

    (3) The "n/d" indicates not detected.
    

    All exploration work is being performed under the guidance and
supervision of Phillip C. Walford, President and Chief Executive Officer of
the Company, a professional geologist and Qualified Person as defined by
National Instrument 43-101. Mr. Walford has approved the contents of this
press release.

    About Marathon PGM Corporation

    The Company has a 100-per-cent interest in the Marathon PGM -- Cu
project, located about 10 kilometers north of Marathon, Ont. The project is
currently undergoing a definitive feasibility study and a 35,000 m drill
campaign. As announced previously, the company has completed a revised
preliminary economic assessment in compliance with the provisions of National
Instrument 43-101, showing a measured resource of 39.2 million tonnes
containing 1.6 million ounces of PGM and gold and 285 million pounds of
copper, and an indicated resource of 28.9 million tonnes containing
1.1 million ounces of PGM and gold and 178 million pounds of copper. An
additional low-grade resource was also identified in the report completed by
P&E Mining Consultants Inc. and filed on SEDAR on April 5, 2007.
    As part of its growth strategy, in April 2007, Marathon entered into an
option agreement with Gossan Resources on the Bird River Sill PGM and Cu-Ni
property, located in southeastern Manitoba. Prospecting and data compilation
of the Bird River property is focused over several key areas, including the
Coppermine, Page East, Page West and Galaxy Zones. Marathon can earn-in up to
a total 70% interest by completing a bankable feasibility study and arranging
project financing. In October 2007, Marathon entered into an agreement with
Bird River Mines Inc on the Ore Fault and Lotus Properties, located on the
eastern margin of Marathon's Bird River property.
    In August 2007, Marathon acquired the Steel Mountain PGM and Cu-Ni
property in western Newfoundland and Labrador and has commenced the initial
phase of exploration on this 227.5 km2 property. The Company holds a 100%
interest in the Steel Mountain 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 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
forward-looking statements.

    On Behalf of Marathon PGM:
    "Phillip C. Walford"
    Phillip C. Walford, P.Geo.
    President, Chief Executive Officer
    gen@marathonpgm.com
    Tel: +1.416.987.0711




For further information:

For further information: David Leng, P.Geo: dleng@marathonpgm.com, (905)
537-5377, Fax: (416) 861-1925; For media inquiries, please contact: Vanessa
Napoli, vnapoli@renmarkfinancial.com, (514) 939-3989

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MARATHON PGM CORPORATION

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