TORONTO, Jan. 7 /CNW Telbec/ - Marathon PGM Corporation (TSX: MAR)
("Marathon" or "the Company") is pleased to announce that the shareholders of
Bird River Mines Inc., ("BRMI", BRMI:CNQ) have approved the option and joint
venture agreement on the Ore Fault Property ("Ore Fault"). The Ore Fault
covers 446 hectares and is located at the eastern margin of Marathon's Bird
River Project, which is under option from Gossan Resources (GSS:TSX.V). With
the addition of Ore Fault to Marathon's Bird River Project, the total strike
length covered of highly prospective ground is 22 kilometers. The agreement
was approved at BRMI's Annual General and Special Shareholders Meeting on
December 28th, 2007. The agreement allows Marathon to earn staged amounts of
interest of Ore Fault through work and cash payments.
Under the terms of the agreement, Marathon will have the option to earn a
70% interest in the Ore Fault by making cash payments of $250,000 to BRMI and
carrying out, as operator, $600,000 in exploration expenditures on Ore Fault
by August 1, 2008.
Once Marathon's interest in the Ore Fault reaches 70%, Marathon may
require BRMI to sell to Marathon, BRMI's remaining 30% interest in the Ore
Fault; and BRMI may require Marathon to purchase the remaining 30% interest in
the Ore Fault for a purchase price of $1,450,000, payable in cash or common
shares of Marathon, at Marathon's option, subject to regulatory approval. BRMI
shall retain a 1.0 % net smelter return royalty (the "NSR") in all minerals
and metals extracted from the Ore Fault.
Marathon also made a firm commitment to conduct $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 has been paid and $80,000 is now to be
paid upon having obtained BRMI shareholder approval.
"Our immediate focus is to start drilling and develop resources at Ore
Fault," said David Good, P.Geo., VP of Exploration. "The groundwork for
prioritizing targets was completed in 2007 and we are now ready to drill."
The Bird River Project
A total of 6 targets have been identified on the combined properties that
now comprise Marathon's Bird River Project. The targets were outlined through
a compilation of historical drilling, geophysical surveys and prospecting
during 2007. The targets to be drilled are on Ore Fault, Galaxy and Page
Claims. The approach is to first conduct detailed ground IP surveys to further
delineate potential mineralization and subsequently drill. Work will commence
at the Ore Fault in mid January and then proceed to the Galaxy and Page West
Claims by mid February. A budget of $1.4 million has been allocated for this
work and the goal is to establish NI43-101 compliant resources.
Ore Fault Exploration
Marathon will explore three main targets - Ore Fault North, -South and
-South-East. Ore Fault North has forty-four historical drillholes that
intersected mineralization to a depth of 250 m and it is also open along
strike. Historical drillhole 89-16 intersected 52.6 m of 0.24 % copper and
0.49 % nickel, including an interval of 6.4 m grading 0.54 % copper and 1.13 %
nickel (1 and 2). Considering that this hole is one of the deepest drilled at
Ore Fault and that it is still open at depth, there is excellent potential to
outline additional mineralization.
Platinum group metals were not evaluated by previous operators but have
been confirmed by analysis of grab samples that contained up to 5.2 % nickel,
0.83 % copper and 2.7 g/t combined PGM and Au. Ore Fault South is located
approximately 1 km along strike from Ore Fault North. It is outlined by a
combined magnetic and EM anomaly that is equal in size or larger than that
which outlines the Ore Fault North. No drilling has ever been conducted on the
Ore Fault South.
Ore Fault South-East is located less than 100 metres from Mustang
Minerals' Cup Anderson discovery, which recently returned initial drill
results of 0.81 % copper over 17.5 metres and 0.55 % copper over 30.7 metres.
There is no record of any exploration activity on Ore Fault South-East.
(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.
Mineralization at Page occurs along the base of the Bird River Sill. In
light of a number of historical holes that intersected mineralization, the
objective of drilling the Page is to create sufficient drill intersection
density to enable the calculation of an NI43-101 compliant resource.
Historical drilling includes drill hole BR-05-02, which intersected 13.5 m
grading 1.08 % nickel, 0.73 g/t palladium, 0.27 g/t platinum and 0.50 %
copper. Included in this intersection was 4.75 m grading 2.14 % nickel,
1.11 g/t palladium, 0.40 g/t platinum and 0.44 % copper. This mineralized zone
is open along strike and at depth.
The target is a 600 m long EM and magnetic anomaly that prospecting has
shown to be mineralized with grab samples that assayed greater than 0.47 %
copper and up to 2 g/t gold. No drilling has ever been conducted on this EM
All exploration work is being performed under the guidance and
supervision of Phillip C. Walford, P.Geo., President and Chief Executive
Officer of the Marathon. Mr. Walford has approved the contents of this press
(To see a map of the Bird River Project, go to
About Marathon PGM Corporation
Marathon has a 100% interest in the Marathon Project, located about
10 kilometers north of Marathon, Ont. The project is currently undergoing a
definitive feasibility study, which is expected to be completed in Q2. As
announced in November 2007, the Company has completed a NI43-101 compliant
resource estimate showing a measured resource of 45.9 million tonnes
containing 1.79 million ounces of PGM and gold and 314 million pounds of
copper, and an indicated resource of 35.5 million tonnes containing
1.39 million ounces of PGM and gold and 211 million pounds of copper. An
additional low-grade resource was also identified in the November 2007
resource estimate completed by P&E Mining Consultants Inc.
As part of its growth strategy, Marathon entered into agreements with
Gossan Resources and Bird River Mines Inc., on the Bird River Project, located
in southeastern Manitoba. Prospecting and data compilation completed in 2007
yielded several targets that Marathon will start to drill in January of 2008.
In August 2007, Marathon acquired the Steel Mountain Project in western
Newfoundland and Labrador and has completed the initial phase of exploration
on this 227.5 km(2) property. The Company holds a 100% interest in the Steel
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:
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