TORONTO, Aug. 19 /CNW/ - Marathon PGM Corporation ("Marathon" or "the
Company", MAR-TSX) is pleased to announce that it has acquired the Ore Fault
Property ("OFP") from Bird River Mines Inc (CNQ:BRMI). The OFP consists of 19
claims which cover 446 hectares and is located at the eastern margin of
Marathon's Bird River Project, which is under option from Gossan Resources
(GSS:TSX.V). The Gossan portion of the Bird River Project consists of 65
claims which cover 8,781 hectares.
- acquisition of OFP will be subject to a Joint Venture with Gossan
- the entire Bird River Project covers 22 km strike length of
- multiple exploration targets identified
- two NI 43-101 compliant resource estimates for Bird River Project to
be delivered in Q4
- Marathon is well financed with $20 million cash
"Acquisition of the Ore Fault gives us a very prospective land package in
the Bird River Sill," said Phillip Walford, President and CEO "and gives us an
excellent opportunity to develop the Page and Ore Fault resources in just the
first year of exploration."
Completed and Planned Work
The initial campaign on the OFP consisted of prospecting, surface
sampling and drilling of twenty-one holes (4,308m). Marathon will release an
NI 43-101 compliant resource estimate for the OFP in Q4. Marathon is planning
a detailed mapping program of the OFP in order to enhance the exploration
model and define further drill targets. Marathon's success to date has been
the result of careful planning, hard work and technical proficiency.
Multiple lenses of massive sulphide have been intersected at both the
Page and Ore Fault Zones, including 15m grading 1.71% Ni at Ore Fault and 6.5m
grading 1.65% Ni at Page. The lenses are contained within a 'footprint' of
larger zones of lower grade mineralization, as is typical of other magmatic
sulphide deposits. There is good potential for discovering other massive
sulphide lenses along the 20km strike length of the Bird River Sill by
following the footprint as identified in historic drilling. As an example, at
Coppermine Bay, located 20 km west of Page Zone, disseminated mineralization
with up to 3g/t PGM+Au occurs along 800m of strike length. A single hole
located at the east end of the Coppermine Zone drilled by Canex Placer Ltd in
1973 (assessment file report 91832, Manitoba Mining District) contained an
intersection grading 0.24% nickel, 0.42% copper, 1.02 g/t platinum and
1.19 g/t palladium over 12.2 m.
Dr. David Good, Marathon's VP of Exploration, completed an extensive
3-year study with the Geological Survey of Canada on global magmatic nickel
and PGM deposits. His familiarity with these types of deposits plays a
critical role in further enhancing and refining the exploration at the Bird
"We accelerated our exploration plans because results exceeded
expectations and in less than a year we have enough data to calculate a
resource at two locations," said David Good, VP of Exploration.
Once Marathon's interest in the OFP reached 70%, Marathon exercised its
option to require BRMI to sell the remaining 30% interest in the OFP. Marathon
purchased the outstanding 30% interest in the OFP for a purchase price of
$1,450,000. BRMI shall retain a 1.0 % net smelter return royalty (the "NSR")
in all minerals and metals extracted from the OFP.
Marathon had earned a 70% interest in the OFP by making aggregate cash
payments of $250,000 to BRMI and carrying out, as operator, $600,000 in
exploration expenditures on the OFP before August 1, 2008.
Gossan-Marathon Joint Venture
Acquisition of the OFP will be part of a 50/50 Joint Venture between
Marathon and Gossan Resources. The earn-in for the joint venture requires
Marathon to make payments of $500,000 to Gossan and spend $3 million on the
Gossan property by 30-April-2011. The expenditures on the Gossan and Ore Fault
properties now exceed the $3 million vesting requirements and payment of the
remaining cash to Gossan will trigger formation of the joint venture. As
operator of the JV, Marathon has the options of continuing with the 50/50
joint venture with a dilution clause or elect within 120 days of the formation
of the JV to go to a 65% interest by assuming all costs for a feasibility with
an additional 5% for completing the financing.
Phillip Walford, P.Geo., President and CEO, 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 press release on behalf of Marathon.
About Marathon PGM Corporation:
Marathon is in the process of completing a definitive feasibility study
on the Marathon PGM-Cu deposit, which is on track for completion in September.
Marathon also has development and exploration stage properties in southeastern
Manitoba and western Newfoundland and Labrador. Marathon's management plans to
build on this focus through the advancement of its properties, focusing on
resource development and by examining other strategic PGM and base metal
opportunities within Canada.
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, 2007. 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
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: Tel: (416) 849-3432, Fax:
(416) 861-1925, firstname.lastname@example.org