TORONTO, ON, April 18 /CNW Telbec/ - Marathon PGM Corporation (TSX: MAR)
("Marathon" or the "Company") is pleased to announce that it has signed an
agreement with Gossan Resources Limited ("Gossan") to option the Bird River
Project (the "Property"). The Property consists of 7,301 hectares and covers a
strike length of over 21 km of the Bird River Sill Complex. The Bird River
Complex carries significant mineralization of palladium and platinum along
with nickel, copper, zinc and chromium. The Property is located about 150 km
northeast of Winnipeg, Manitoba on the Bird River Sill and approximately 6 km
northwest of Mustang Minerals' Maskwa Deposit and the historic Dumbarton mine.
Phillip Walford, President and CEO of Marathon, added, "The acquisition
of the large Bird River portfolio reflects Marathon's growth strategy of
adding highly prospective projects near infrastructure and that have the
geological potential to rapidly develop PGM resources. Acquiring this project
is an important step in the growth of the Company and will complement the work
being done on our advanced Marathon PGM - Cu Project."
Platinum and palladium mineralization have recently been identified in
several environments on the property, including nickel and copper
mineralization in ultramafic rocks, reef style mineralization near and in the
chromite layers and mineralization in the surrounding volcanic rocks. Much of
the earlier sampling and drilling on the Property did not test for PGM.
Seven regional airborne electromagnetic targets have been identified and
have yet to be drilled. In addition, a zone of PGM-nickel and copper
mineralization has been outlined on the eastern end of the Property on the
Page Block by widely spaced drilling over a strike length of approximately
300 m. The Page Zone appears to be geologically similar to Mustang Minerals'
Maskwa deposit. Intersections in the zone include drill hole BR-05-02
intersecting 13.5 m grading 0.73 g/t palladium, 0.27 g/t platinum, 1.08%
nickel and 0.50% copper. Included in that intersection was 4.75 m grading 1.11
g/t palladium, 0.40 g/t platinum, 2.14 % nickel and 0.44% copper. Two widely
spaced drill holes which intersected low grade PGM-nickel and copper
mineralization establish the Page Zone as having a strike length of 1 km. The
Page Zone is an immediate drill target.
Dave Good, VP Exploration, stated "our team is excited about applying the
exploration strategies and techniques learned at the Marathon property to
other properties with the same potential. Developing a resource on the Page
property will be a great way to start the project, and then by combining low-
and high-tech methods such as prospecting and strategic geochemical and
geophysical surveys we can efficiently and systematically evaluate the
The planned summer program will field test and prioritize the most
favourable anomalies by prospecting and conducting surface geochemistry. In
addition, numerous showings on the Property will be prospected. Marathon is
planning a diamond drill campaign based on this work. The Company has
allocated geological staff for this work and, has sufficient resources to
manage both the Bird River and Marathon projects.
Under the terms of the Agreement, Marathon can earn an undivided 50%
interest in the Bird River Property by spending $3.0 million on exploration
and making cash payments of $500,000 to Gossan by April 30, 2011. Thereafter,
Marathon can earn a further 15% interest by completing a definitive
feasibility study and an additional 5% interest, to a total 70% interest, by
arranging project financing. Under certain conditions, Marathon may elect to
issue its common shares in lieu of cash payments. Upon formation of a joint
venture, Marathon must also make annual advance royalty payments of $100,000
until commercial production is achieved. The advanced royalty payments are
recoverable by Marathon once in production. In the 1st year of this agreement,
Marathon's work exploration commitment is $500,000 by April 30, 2008, with an
initial cash payment of $50,000. The Agreement is subject to TSX approval.
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
About the Marathon PGM - Cu Project
The Company has a 100% interest in the Marathon PGM - Cu Project, located
about 10km north of Marathon, Ontario. 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 potentially mineable measured resource of 39.2 million tonnes
containing 1.6 million oz of PGM and gold and 285 million lbs of copper, and
an indicated resource of 28.9 million tonnes containing 1.1 million oz of PGM
and gold and 178 million lbs 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.
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
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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: email@example.com, (905)
537-5377; Fax: (416) 861-1925, www.marathonpgm.com; For media inquiries,
please contact: Vanessa Napoli, (514) 939-3989, firstname.lastname@example.org