Marathon Resource Grows to 3.54 million ounces of PGM and gold, 4.75 million ounces of silver and 585 million pounds of copper



    TORONTO, Nov. 29 /CNW Telbec/ - Marathon PGM Corporation (TSX: MAR)
("Marathon" or "the Company") is pleased to announce an updated in-pit
resource estimate for the Marathon PGM-Cu Project (the "Project"). The
Company's 2007 drill program was designed to increase the measured and
indicated resources and total resources. This program led to an increase in
measured and indicated (M&I) and inferred resources and an increase in total
resources, containing 3.54 million ounces of PGM and gold and 585 million
pounds of copper. The new resource includes Rhodium and Silver, which have not
been included in the economics of the deposit in the past but will be included
in the upcoming Definitive Feasibility Study. Both of these elements have been
recovered during metallurgical testing. This in-pit resource will be used as
the basis for a Definitive Feasibility Study, which is on schedule for
completion during 2008. This larger resource has the potential to extend the
mine life well beyond the current Preliminary Economic Analysis forecast of
14 years.
    Phillip Walford, President and CEO of Marathon commented "The increase in
tonnage enables us to seriously evaluate a higher production rate of 22,000
tonnes per day (7.7 million tonnes per year) over the April 2007 Preliminary
Economic Analysis base case rate of 18,000 tonnes per day. This will
significantly increase metal production and cash flow over the first 10 years
of mine life."
    Marathon's 2007 drill program was designed to increase the proportion and
total size of M&I resources. The Company drilled 180 holes totalling 38,400
metres during 2007, which when added to the prior drilling brings the total to
121,504 metres. An NI 43-101 resource estimate was completed by independent
mining consultants and Qualified Persons, Eugene Puritch, P.Eng., Tracy
Armstrong, P.Geo., and Antoine Yassa, P.Geo. of P&E Mining Consultants Inc. of
Brampton, Ontario ("P&E").

    
    Table 1. Resource above $13.50/tonne NSR Cut-Off (excluding low grade)
    ----------------------------------------------------------------------

    P&E Nov 2007 Resource,  All Zones within Pit Shell
    -------------------------------------------------------------------------
    Category    Tonnes         Pd       Pt       Au       Cu      Ag      Rh
              millions        g/t      g/t      g/t        %     g/t     g/t

    -------------------------------------------------------------------------
    Measured      45.9       0.87     0.24     0.09     0.31    1.59    0.01
    -------------------------------------------------------------------------
    Indicated     35.5       0.84     0.28     0.09     0.27    1.89    0.01
    -------------------------------------------------------------------------
    Measured
     + Indicated  81.4       0.86     0.26     0.09     0.29    1.72    0.01
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred       3.9       0.66     0.22     0.09     0.26    1.96    0.01
    -------------------------------------------------------------------------

    Contained Metal
    -------------------------------------------------------------------------

    Category                Pd oz    Pt oz    Au oz    Cu lb   Ag oz   Rh oz
                            (000)    (000)    (000)  million   (000)   (000)
    -------------------------------------------------------------------------
    Measured                1,284      354      133      314   2,346      15
    -------------------------------------------------------------------------
    Indicated                 958      320      103      211   2,157      11
    -------------------------------------------------------------------------
    Measured
     + Indicated            2,242      674      236      525   4,503      26
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred                   84       28       11       22     246       1
    -------------------------------------------------------------------------


    Table 2. Additional Low Grade Resource between $7.79 & $13.50/tonne NSR
    Cut-Off
    ------------------------------------------------------------------------

    P&E Nov 2007 Resource, All Zones within Pit Shell

    -------------------------------------------------------------------------
    Category    Tonnes         Pd       Pt       Au       Cu      Ag      Rh
              millions        g/t      g/t      g/t        %     g/t     g/t

    -------------------------------------------------------------------------
    Measured       2.0       0.38     0.12     0.05     0.14    1.56    0.01
    -------------------------------------------------------------------------
    Indicated      9.8       0.36     0.14     0.05     0.13    1.52    0.01
    -------------------------------------------------------------------------
    Measured
     + Indicated  11.8       0.36     0.14     0.05     0.13    1.53    0.01
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred       1.2       0.37     0.11     0.05     0.15    1.66    0.01
    -------------------------------------------------------------------------


    Contained Metal

    -------------------------------------------------------------------------
    Category                Pd oz    Pt oz    Au oz    Cu lb   Ag oz   Rh oz
                            (000)    (000)    (000)  million   (000)   (000)

    -------------------------------------------------------------------------
    Measured                   24        8        3        6     100       1
    -------------------------------------------------------------------------
    Indicated                 113       44       16       28     479       3
    -------------------------------------------------------------------------
    Measured
     + Indicated              137       52       19       34     579       4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred                   14        4        2        4      64       1
    -------------------------------------------------------------------------


    (1) Mineral resources which are not mineral reserves do not have
        demonstrated economic viability.  The estimate of mineral resources
        may be materially affected by environmental, permitting, legal,
        title, taxation, sociopolitical, marketing, or other relevant issues.

    (2) The quantity and grade of reported inferred resources in this
        estimation are conceptual in nature and there has been insufficient
        exploration to define these inferred resources as an indicated or
        measured mineral resource and it is uncertain if further exploration
        will result in upgrading them to an indicated or measured mineral
        resource category.

    P & E estimated this new in-pit resource including the 2007 drilling using
an average external NSR cut-off of C$13.50 per tonne (See Table 1.) (based on
processing costs of $7.30/t, G&A $0.49/t, and mining costs of $5.71/t).
Concentrate shipping costs of $0.34/t and smelter treatment charges of $1.83/t
(based on per tonne milled) are included in the NSR value. Metal prices used
in P&E's estimate were Cu $US 2.50/lb, Au $US550/oz, Pt $US1,100/oz and Pd
$US300/oz. The US/CDN exchange rate was $0.90. The metal prices and exchange
rate utilized were based on an approximate 30 to 36 month trailing average.
Concentrate recoveries were Cu 92%, Au 60%, Pt 76% and Pd 80%, in line with
metallurgical recoveries reported in February 2005 by SGS Lakefield. An
additional low grade resource was defined between an NSR cut off of
C$7.79/tonne and $13.50 /tonne (see Table 2.) This low grade NSR cut-off of
$C7.79/tonne was derived from the internal cut-off grade that consists of
$7.30/tonne processing costs and $0.49/tonne G&A costs.
    The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council
December 11, 2005.
    Tonnages were calculated using a bulk density of 3.03 tonnes per cubic
metre as determined by SGS Canada from samples taken by Eugene
Puritch, P.Eng.. Model grade blocks were sized at 6.0 m wide by 12.5 m long by
6.0 m high. Inverse distance squared (ID(2)) interpolation was used to
determine grade block values.
    This mineral resource contains a high-grade lens referred to as the W
Horizon. This lens now contains over 1.5 million tonnes of indicated
resources. The following table is for this high-grade zone only, which is
included within the total project resource table 1 above.


    Table 3. Resource Estimate for the High Grade W-Horizon  Only (included
    in Table 1 above)
    -----------------------------------------------------------------------

    P&E Nov 2007 Resource, All Zones within Pit Shell
    -------------------------------------------------------------------------
    Category    Tonnes         Pd       Pt       Au       Cu      Ag      Rh
              millions        g/t      g/t      g/t        %     g/t     g/t

    -------------------------------------------------------------------------
    Indicated      1.5       4.88     1.70     0.29     0.24    2.01    0.07
    -------------------------------------------------------------------------

    Contained Metal

    -------------------------------------------------------------------------

    Category                Pd oz    Pt oz    Au oz    Cu lb   Ag oz   Rh oz
                             (000)   (000)    (000)  million   (000)   (000)

    -------------------------------------------------------------------------
    Indicated                 235       82       14        8      97       3
    -------------------------------------------------------------------------

    (1) Mineral resources which are not mineral reserves do not have
        demonstrated economic viability.  The estimate of mineral resources
        may be materially affected by environmental, permitting, legal,
        title, taxation, sociopolitical, marketing, or other relevant issues.

    (2) The quantity and grade of reported inferred resources in this
        estimation are conceptual in nature and there has been insufficient
        exploration to define these inferred resources as an indicated or
        measured mineral resource and it is uncertain if further exploration
        will result in upgrading them to an indicated or measured mineral
        resource category.

    
    The 2007 drilling campaign focussed on five main objectives:
(1) exploration of the W Horizon (2) expansion of the Main zone at depth,
(3) definition of the southern and eastern contacts of known mineralization,
(4) infill drilling, and (5) ground condemnation for mine development. These
objectives were achieved and the expansion of the W horizon is an important
success.
    P&E believe that excellent potential exists to convert the remaining
inferred resource to the measured and indicated category with a moderate
amount of strategically planned infill drilling to be undertaken in early
2008.
    In January 2008, a drilling program will commence in order to expand the
resource and upgrade the indicated or inferred mineralization for the upcoming
definitive feasibility study. This will be accomplished by a combination of
step-out and in fill drilling. In addition, exploration started in 2007 will
continue at the SG and WD zones located along strike and south of the
Malachite zone.
    Dave Good, VP of Exploration remarked "The timing of this updated
resource estimate is critical to our plans given the rapid pace of
exploration.  The updated pit design has highlighted key areas for drilling
that will continue to expand the resource. Of particular interest is the W
Horizon, which has only been explored to relatively shallow depths. The SG and
WD zones have potential to add resources and ultimately extend mine life. 
This success is in large part due to the hard work of our exploration crew in
Marathon."
    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 40,000 m drill
campaign was completed in September 2007. 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

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