TORONTO, Aug. 2 /CNW Telbec/ - Marathon PGM Corporation ("Marathon" or
"the Company") announced today its unaudited financial results for the
six months ended June 30, 2007.
- Incorporating the results of the 2006 drilling program into a revised
preliminary economic assessment which showed an increase of 38% in the
measured and indicated diluted resource and the extension of the
expected mine life from 9 to 13.5 years.
- Selecting a consortium led by Micon International Ltd. to deliver a
definitive feasibility study on the property, with completion in early
- Completion of 24,490 meters of drilling out of a planned program of
35,000 meters of infill, exploration, geotechnical, and condemnation
drilling on the Marathon PGM-Cu property.
- Acquiring an option interest on the Bird River Sill project, a highly
prospective Ni-Cu-PGM property located approximately 120 km from
Winnipeg, Manitoba, from Gossan Resources Limited, and commencing
prospecting and preparations for a fall drilling program.
Marathon's financial condition remains strong. At June 30, 2007, Marathon
had working capital of $10.7 million, compared to $12.8 million at
December 31, 2006, as operations and project spending amounting to
$4.2 million were offset partially by $3.0 million in proceeds from the
exercise of outstanding warrants and options. The Company had sufficient funds
at June 30, 2007 to fund its administration, exploration and development
program for the remainder of the year.
Marathon's net loss before tax for the six months ended June 30, 2007 was
$1,429,678, compared to $914,263 million in 2006. The Company incurred
exploration costs in connection with the Bird River Sill exploration project,
as well as higher expenditures in connection with staff and occupancy costs,
professional fees, investor relations costs, and non-recurring costs
associated with listing the Company's shares on the Toronto Stock Exchange.
Deferred development and exploration costs incurred on the Company's
Marathon PGM-Cu project totaled $4.2 million in the first six months of 2007,
compared to $1.9 million in the same period in 2006, in line with an increased
scope of drilling and investigative work on the deposit and activity to date
on the definitive feasibility study.
This summary of financial highlights should be read in conjunction with
Marathon' unaudited financial statements for the three and six months ended
June 30, 2007 and the related Management's Discussion and Analysis, both of
which are available on www.sedar.com. The Company's Web site may be found at
About the Marathon PGM-Cu Project
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 meter 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.
In April 2007, Marathon entered into an option agreement with Gossan
Resources on the Bird River Sill Ni-Cu and PGM property, located in
Southeastern Manitoba. Marathon is conducting exploration activities through
2007 at the Bird River Sill and will be drilling at the Page Zone in late
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
President, Chief Executive Officer
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