RE: JV Agreement detailsMarathon Enters into Option and JV Agreement with North Range Resources on Tim's Brook Property, NL
Wed Feb 27, 8:02 AM
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TORONTO, Feb. 27 /CNW/ - Marathon PGM Corporation ("Marathon" or "the Company") is pleased to announce it has completed an Option and Joint Venture Agreement (the "Agreement") with North Range Resources Ltd. ("NR") a privately owned junior mining company based in Clarke's Beach, Newfoundland. The agreement is on the Tim's Brook Property ("TBP"), an undeveloped gold and silver prospect that is entirely surrounded by Marathon's claims in the Steel Mountain Complex near Stephenville, Newfoundland.
Highlights:
- high-grade grabs of gold (up to 162.7 g/t Au) and silver (up to
401 g/t Ag) mineralization hosted in quartz veins
- TBP is internal to the Steel Mountain Complex, where Marathon
identified anomalous PGM and base metal mineralization in 2007
- the TBP geological setting of quartz veins located as a splay of the
Long Range Fault that hosts numerous gold deposits in Newfoundland
(Pine Cove, Cape Ray and Glover Island)
- an airborne geophysical survey of the Marathon's properties is
planned to be completed by the end of March
Dave Good, Marathon's VP of Exploration, noted "The Steel Mountain Complex is relatively unexplored, yet contains known PGM and base metal mineralization. While the TBP is at an early stage of exploration, gold-bearing quartz veins have been found in a structure that has been traced for 3 kilometers. These veins are part of a structural splay off of the Long Range Fault, which hosts a number of other gold deposits. Our upcoming geophysical survey will assist in defining the structure and geology of the complex."
Agreement Terms
As the operator, Marathon can earn up to a 75% interest in the Tim's Brook Property by spending a total of $4,000,000 on exploration and by committing to bringing the project to feasibility. This earn-in expenditure is staged as follows: $1,000,000 over the next three years to earn a 51% interest; a further $1,000,000 by February 18, 2012 to earn an additional 14% interest, for a total of 65%; and additional expenditures of $2,000,000 and completion of a feasibility study to earn an additional 10% for a total 75% interest. A local prospecting group, Muck Resources, holds a 3% Net Smelter Royalty, the first 2% of which can be purchased at the rate of $1,000,000 for each 1%.
As part of the Agreement, Marathon completed a private placement of $40,000 with North Range, purchasing 80,000 shares of NR stock at a price of $0.50 per share.
Tim's Brook Property
TBP is situated in the southern Long Range Mountains of western Newfoundland and is located just east of the Trans Canada Highway. Marathon carried out an aggressive exploration program in 2007 at the Steel Mountain Complex and successfully confirmed multiple zones of anomalous PGM and base metals. Acquisition of the TBP expands Marathon's land holdings in Newfoundland and Labrador to an area covering 1,284 hectares.
The first year of exploration costs is in the existing budget of Marathon's Newfoundland properties.
(To view the Steel Mountain Project, please click on the following link https://www.marathonpgm.com/newsmaps/2008-07.jpg).
David Good, P.Geo., Marathon's VP of Exploration is Marathon's Qualified Person in compliance with National Instrument 43-101 with respect to this release. Dr. Good has reviewed the contents for accuracy and has approved this press release on behalf of Marathon.
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