TORONTO, Sept. 9, 2013 /CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (MOZ:TSX) today announced the signing of an option to lease agreement by Juniper Resources ("Juniper") for the Skookum Lode of the Golden Chest Mine in north-eastern Idaho, USA. The Golden Chest Mine is owned 52.22% by Marathon Gold Corporation ("Marathon") and 47.78% by New Jersey Mining Corporation ("NJMC") and NJMC is the operator.
The agreement provides Juniper with the option to undertake definition drilling on the Skookum Lode at the Golden Chest Mine. Juniper has until November 30, 2013 to decide whether to proceed with mining of the Skookum Lode from underground. The term of the lease is 39 months from the date of signing of the agreement providing Juniper elects to proceed with mining once the option period is finished.
The Skookum Lode extends for 400 m along strike but represents less than 40% of the total favourable strike length of the Idaho Fault which hosts several associated gold bearing veins. Areas of high grade potential that are not included in this agreement are the Joe Dandy veins in the south end of the mine and the Katie Dora veins in the north end of the mine. The proposed mining in the Skookum Lode will have no impact on the existing open pit resource of Measured and Indicated 4,371,000 tonnes grading 1.59 g/t Au and containing 223,000 ounces of gold, and an additional Inferred open pit resource is 2,369,000 tonnes grading 1.33 g/t Au and containing 101,000 ounces of gold.
Material terms of the Agreement are as follows;
|1)||US$50,000 was paid on signing and divided on a pro rata basis between Marathon and NJMC.|
|2)||Juniper will conduct a definition drilling program of 5,000 to 10,000 feet and decide by November 30, 2013 whether it will exercise its option to enter into the mining lease.|
|3)||If the lease option is exercised, Juniper will pay Marathon and NJMC a US$200,000 advanced royalty payment to be divided on a pro rata basis between Marathon and NJMC.|
|4)||Juniper will pay a 2% net smelter return to Marathon and NJMC on a pro rata basis.|
|5)||Juniper will make the payments to the vendor of the Golden Chest Mine for the duration of the time that Juniper is mining the Skookum Lode. These payments amount to US$1,500,000 over the next three years.|
|6)||The mine owners are free to explore the rest of the property outside the lease area during the term of the lease.|
"The exercise of this lease has the potential to provide ongoing cash flow to Marathon over the length of the lease and it will free up money that would otherwise be required to fund annual payments to the vendor of the Golden Chest mine. This saving and the additional royalty funds will allow us to focus our resources on the Valentine Lake Property which has a significant gold resource and several drill ready targets." commented Phillip Walford, President and CEO of Marathon.
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 new release on behalf of Marathon.
Golden Chest Mine
The Golden Chest Mine is located two miles east of Murray, Idaho within the gold belt of the Coeur d'Alene Mining District. The mine has over 3,900 m of underground workings and has the permits necessary to drill and operate on the deposit. The property includes 24 patented mining claims and 70 unpatented mining claims covering 515 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the Joint-Venture to work easily on the Mine property.
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 is continually evaluating new gold resource development projects of merit that are located within the Americas. Marathon's focused and low-cost approach to exploration and resource development has an established record of delivering rapid growth. For more information visit: www.marathon-gold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon Gold Corporation, 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 Marathon Gold Corporation's public filings, which may be accessed at www.sedar.com. 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.
SOURCE: Marathon Gold Corporation
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