Marathon Announces 2009 Financial Results

TORONTO, March 26 /CNW/ - Marathon PGM Corporation ("Marathon" or the "Company") announced today its financial results for the year ended December 31, 2009. At December 31, 2009, Marathon had cash and short-term investments of $10.8 million, compared to $16.3 million at December 31, 2008, with operations and project spending in the period amounting to $2.5 million and $4.3 million respectively. Exploration and development plans for 2009, particularly for the Marathon PGM-Cu project, were focused on moving toward the acquisition of mining permits and the completion of the updated feasibility study on the Marathon PGM-Cu project. Marathon's current cash resources are adequate to fund its general and administrative expenses, exploration, and permitting activities through 2010.

    Operational Highlights

    Marathon area properties

      -  Completing a revision of the feasibility study on the Marathon
         PGM-Cu project, which:
           -  established proven and probable reserves of 91.4 million tonnes
              containing a total of 3.4 million ounces of PGMs and gold,
              497 million pounds of copper, and 4.2 million ounces of silver,
              an after-tax net present value of $251 million, and an
              after-tax internal rate of return of $17%,
           -  extended the expected mine life from 10 to 12 years, and
           -  reduced the expected life-of-mine strip ratio from 3.54:1
              to 2.88:1
      -  Completing the purchase of a 100% interest in the Bamoos property
         from Benton Resources, subject to a net smelter returns royalty.
      -  Completing a review of historical drilling and surface data and
         refinements of the geological model associated with the Geordie Lake
         Deposit, which identified a target area with potential
         mineralization at better-than-average grades.

    Bird River Joint Venture, southeastern Manitoba

      -  Completing a winter drilling program which extended higher-grade
         nickel-copper and copper-zinc-silver mineralization identified in

    Valentine Lake property, central Newfoundland

    -    Completing an option and joint venture agreement with Mountain Lake
         Resources Inc. under which we are earning a 50% interest in the
         Valentine Lake gold property.  A successful initial 33-hole drilling
         program completed in the first quarter of 2010 at the Leprechaun
         Deposit, host to a 443,000 ounce NI 43-101 compliant inferred gold
         resource, returned frequent intercepts of visible gold and expanded
         the boundaries of the mineralization up dip and along strike,
         intersecting near-surface mineralization and multiple zones.

    Financial Highlights

    Marathon's losses before tax for the quarters and years ended December 31,
2009 and 2008 are set out below.

                                   Three months ended             Year ended
                                          December 31            December 31
                                      2009       2008        2009       2008
                                         $          $           $          $
    Exploration expenses             5,745    332,495     450,169  4,915,044

    Operating expenses
      General and administrative
       expenses                    379,931    380,528   1,738,855  1,910,179
      Depreciation                  45,581     23,081     129,114     88,003
      Stock based compensation     334,072    167,732     529,019    484,705
                                   759,584    571,341   2,396,988  2,482,887

    Operating loss                 765,329    903,836   2,847,157  7,397,931

    Interest income                (28,543)  (131,656)   (103,742)  (564,117)
    Foreign exchange loss            1,550      1,414       2,043      2,576

    Loss before income taxes       738,336    773,594   2,745,458  6,836,390

Marathon's accounting policy is to capitalize property acquisition and exploration costs on its properties once a mineral resource estimate has been completed. The decrease in exploration expenses in 2009 reflects both an overall decrease in exploration activity and the capitalization of $0.6 million of exploration costs related to the Bird River Joint Venture, compared to $4.1 million expensed in 2008.

This press release should be read in conjunction with Marathon's audited consolidated financial statements for the year ended December 31, 2009 and the related Management's Discussion and Analysis, both of which are available on Marathon's Web site may be found at

About Marathon

Marathon is exploring resource development potential in the immediate vicinity of the Marathon deposit to expand mine life of the planned large tonnage, open pit mining operation. The Marathon deposit is one of the largest PGM-Cu reserves in Canada and is expected to grow with development of additional nearby resources. Marathon's optimized P+P reserve of 91.45 million tonnes grading 0.832 g/t Pd, 0.237 g/t Pt, 0.085 g/t Au, 0.247% Cu and 1.44 g/t Ag, contains 2.44 million ounces of Pd, 696,000 ounces of Pt, 251,000 ounces of Au, 497 million lbs of Cu and 4.23 million ounces of Ag. Marathon also has development and exploration stage properties in southeastern Manitoba and western Newfoundland, respectively. Marathon's management plans to build on its experience through the advancement of its properties and by examining other strategic opportunities. Mountain Lake has a 30% interest in the Valentine Lake Gold Property with an option to acquire the remaining 70% interest from Richmont Mines Inc. and a subsequent sub-option and joint venture agreement whereby Marathon PGM Corp. can earn a 50% in the property.


Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "considers", "intends", "targets", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. 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, 2009. Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results otherwise.

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

%SEDAR: 00020574E


For further information: For further information: David Leng, P.Geo.:, Tel: (905) 537-5377, Fax: (415) 861-1925

Organization Profile


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