TORONTO, June 14, 2013 /CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (MOZ: TSX) is pleased to announce its first Mineral Resource estimate on Valentine
East Hill. Valentine East Hill is located 13 km along strike, and
distinct from the Leprechaun Gold Deposit at Valentine Lake. This is
the first resource at Valentine Lake outside of the Leprechaun Gold
Deposit and marks a major step forward in the development of the
Initial Open Pit Mineral Resource: Indicated: 761,000 tonnes @ 1.67 g/t
Au containing 41,000 oz; Inferred: 199,000 tonnes @ 1.47 g/t Au
containing 9,000 oz
The Mineral Resource is constrained by an economically optimized pit
shell approximately 300 metres long and has a maximum depth of 100
The open pit Mineral Resource is a result of a focused 2,032 metre drill
program in 2013 that covered only a small part of the gold occurrences
found in the Valentine East area
Valentine East Hill is open both down-dip and along strike to the
northeast and southwest. Historical holes to the northeast of the
current Valentine East Hill resource indicate additional areas of
potential wide spread gold mineralization in this developing area
The discovery cost of the open pit constrained resource was
approximately $8.00 per resource ounce
An updated Open Pit and Underground Resource estimate for the Leprechaun
Gold Deposit is scheduled for completion early in the third quarter.
The update will use 8,360 metres of drilling completed in 2013 which
includes several high grade intersections.
Expanding Drill Targets
Multiple additional high-grade gold occurrences with characteristic
gold-bearing quartz-tourmaline-pyrite veining have been located during
historical and recent Marathon prospecting throughout the Valentine
Lake property. The high-grade gold zones targeted for follow-up
exploration work in 2013 include: The J. Frank Zone, which is ready
for resource drilling, Sprite NE, SA Pond, Valentine SW, an extension
of Valentine East Hill, and Valentine NE, which is located 1000 metres
along strike northeast of the new Valentine East Hill resource. The
majority of these exploration targets were discovered or have been
significantly advanced by Marathon's team over the past two years.
These gold targets cover a 17 km strike length along the Valentine Lake
thrust fault, and many of the targets have never been drilled.
"This year's winter drilling program proved to be a success for Marathon
as we were able to report our first resource at Valentine East Hill;
this is the first resource at the Valentine Lake property outside of
the Leprechaun Gold Deposit. The Leprechaun Gold Deposit and immediate
vicinity was the primary focus of the 2013 drilling program, and we are
working on an updated resource estimate now.
The Leprechaun Gold Deposit, which forms a small part of the 29,000
hectare Valentine Lake Property, has received most of the drilling to
date, while the remainder of the property is in the very early stages
of exploration. We have found a number of potential new gold zones over
the last two years as Marathon undertook systematic exploration of the
entire property. The success attests to the skill of our team and the
great potential of this property" said Phillip Walford, President and
CEO of Marathon.
Valentine East Hill Open Pit Constrained Resource
Open Pit (0.60 g/t Au cut-off)
CIM Definition Standards were followed for mineral resources.
The Qualified Person for the Leprechaun Mineral Resource estimate is
Wayne Valliant, P.Geo.
The Mineral Resources are reported at a cut-off grade of 0.6 g/t Au.
Pit optimizations were used to constrain the resources.
Mineral resources are estimated using an average long-term
forecast, gold price of US$1,350 per ounce and an exchange rate of
US$:C$ of 1:1.
Totals may not add correctly due to rounding.
In order to meet the criteria for "reasonable prospects for economic
extraction" as required by CIM, the block model was constrained by an
optimized pit using a gold price of US$1,350 per ounce and reasonable
cost and metallurgical recovery assumptions.
Mineral Resource Estimate:
The Mineral Resource estimate was prepared by RPA Inc. The updated
Mineral Resources was estimated using the following parametres:
Estimations are based on samples composited to two metres. Grade capping
thresholds were determined following a detailed statistical analysis of
the data within seven geological domains. All high grades were cut to
20 g/t Au.
Mineral Resources were modeled using 3D interactive modeling based upon
The database for the Valentine East Hill model consisted of 28 diamond
drill holes totaling 576 metres of drilling.
The mineralized zones at Valentine East Hill have been modeled
approximately 350 metres along strike.
The grade estimate was interpolated using inverse distance squared.
A 0.60 g/t Au cut-off grade was used for the open pit resource
A density of 2.7 tonnes per cubic metre was used.
The resources in this report were estimated in accordance with the
definitions contained in the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM) Standards on Mineral Resources and Reserves
Definitions and Guidelines that were prepared by the CIM Standing
Committee on Reserve Definitions and adopted by the CIM Council on
November 27, 2010. The RPA Inc. person responsible for this Mineral
Resource Estimate is Wayne Valliant, P.Geo. Mr. Valliant is a Qualified
Person as defined in NI 43-101, and is independent of Marathon. RPA
acknowledges that it has read this news release and approves of its
Phillip Walford P.Geo, President and CEO of Marathon, 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 news release on behalf of Marathon.
About the Valentine Lake Project
Marathon is the 100% owner of the Valentine Lake Project. The Leprechaun
Gold Deposit is situated at the south-western end of the Valentine Lake
Project, and the Valentine East Gold Zone is located 13 kilometres
along strike running in a northeasterly direction from the Leprechaun
Gold Deposit. The J. Frank Zone, which currently extends over an area
in excess of 1.4 kilometres in length and 250 metres in width, is
located up to 0.5 kilometres southwest along strike from the current
resource boundary of the Leprechaun Gold Deposit. These gold
occurrences form part of a 23 kilometre long, highly prospective
gold-bearing mineralized corridor focused along the Valentine Lake
About the Leprechaun Gold Deposit
The Leprechaun Gold Deposit has a NI 43-101 compliant Measured Resource
of 3,033,000 tonnes grading 2.30 g/t Au and Indicated Resource of
6,505,000 tonnes grading 2.19 g/t Au, for a total estimated 682,000
ounces of Au (October 22, 2012 news release). The Inferred Resource is
1,959,000 tonnes grading 2.30 g/t Au, for an estimated 145,000 ounces
of Au. This Resource was estimated using a 0.5 g/t Au minimum cut-off
for open pit resources and 1.5 g/t Au for underground resources. The
Leprechaun Gold Deposit is open at depth and along strike. This
Resource is currently being updated.
About Marathon Gold Corporation
Marathon Gold Corporation is a North American gold resource development
company, with projects located in the mining friendly province of
Newfoundland and Labrador, the prolific Coeur d'Alene Mining District
of Idaho and the historic gold rich Greenhorn District of Oregon, USA.
Marathon has a project pipeline consisting of early stage exploration
to advanced resource development projects. Marathon's focused and
low-cost approach to exploration and resource development has an
established record of delivering rapid growth. For more information
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SOURCE: Marathon Gold Corporation
For further information:
Marathon Gold Corporation
President and CEO
Investor Relations Manager