NEWS!!Marathon Announces New Mineral In-Pit-Resource Estimate of 2.1 M Oz PGM +Au and 348 M lbs of Copper
Monday February 27, 4:05 pm ET
TORONTO, ONTARIO--(CCNMatthews - Feb. 27, 2006) - Marathon PGM Corporation ("the Company")(TSX VENTURE:MAR - News) is pleased to announce the Company's first resource estimate constrained by an optimized pit shell for the Marathon PGM-Cu Project ("the Project"). This in-pit resource is a significant improvement over the past global resource estimates in that it depicts more accurately the potentially mineable portion of the resource.
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The Company drilled 32 holes for 3,700 metres in 2004 and 102 holes for 14,000 metres in 2005. These drilling results were added to the prior drilling on the property for a total of 61,304 metres of drilling. In February, 2006 a NI 43-101 compliant resource estimate was completed by independent mining consultant and Qualified Person, Eugene Puritch, P. Eng., of P&E Mining Consultants Inc. of Brampton, Ontario ("P&E").
P&E estimated the in pit resource listed below using an internal cut-off of C$12.00 per tonne (based on processing costs of $8.60/t, administrative costs of $0.71/t, concentrate shipping costs of $0.38/t and smelter treatment charges of $2.31/t, all on a per tonne milled basis). In addition, P&E based its estimate on metal prices of $US1.53/lb for copper, $US433/oz for gold, $878/oz for platinum, and $250/oz for palladium, and on a US/CAD exchange rate of $0.802. The metal prices and exchange rate utilized were based on a 24-month trailing average except for palladium. The estimate is based as well on concentrate recoveries of 92% for copper, 60% for gold, Pt 76% for platinum, and Pd 80% for palladium, in line with SGS Lakefield's report of February 2005. P&E also completed a NI 43-101 Technical Report on the Marathon deposit in March 2005.
Mineral Resource Tables (1)
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P&E 2006 Resource, All Zones within Pit Shell Contained Metals
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Category Palla- Plat- Cu
dium inum Gold Lbs
Tonnes (Pd) (Pt) (Au) Copper Pd Oz Pt Oz Au Oz Mill-
millions g/t g/t g/t (Cu) % (000) (000) (000) ions
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Measured 19.0 1.07 0.27 0.10 0.36% 655 167 58 153
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Indicated 21.0 1.06 0.30 0.11 0.35% 718 205 70 164
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Meas + Indic 40.0 1.07 0.29 0.10 0.36% 1,373 372 128 317
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Inferred 4.6 1.06 0.33 0.12 0.31% 157 49 18 31
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(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council November, 2004.
Tonnages were calculated using a bulk density of 3.03 tonnes per cubic metre as determined by ALS Chemex from samples taken by Eugene Puritch. Model grade blocks were sized at 6.0 m wide by 12.5 m long by 6.0 m high. Inverse distance squared (ID2) interpolation was used to determine grade block values.
The 2005 drilling program helped to increase measured and indicated tonnes of 73% and a 34% increase in contained Pd ounces, 44% of Pt ounces and 57% Cu pounds. This new resource has also increased the total measured, indicated and inferred tonnes by 41%.
P&E believes that excellent potential exists to convert the remaining inferred resource to the measured and indicated category with a moderate amount of strategically planned infill drilling. A review of resource by Marathon PGM also identified areas to potentially increase the resource as well as some exploration targets. As a result, the Company has already contracted with a drilling company to drill more than 10,000 metres of diamond drilling to begin at the end of the second quarter of 2006.
"The Company is very pleased with the new resource. It has exceeded the goal of our 2005 drilling program. We are looking forward to the results of the Preliminary Assessment Study and we are very enthusiastic about resuming exploration and drilling in May," said Phillip Walford, CEO.
There are no Mineral Reserves estimated for the Project at this time. There can be no assurance that these Mineral Resources can be turned into Mineral Reserves. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
The Marathon Property is located about 10 km north of the town of Marathon, Ontario, Canada and is well located with respect to transportation infrastructure. The town of Marathon is adjacent to the Trans-Canada Highway on the northeast shore of Lake Superior, approximately 300 km east of the city of Thunder Bay. All work is being performed under the guidance and supervision of Phillip C. Walford, President & CEO for the Company, a Professional Geologist and Qualified Person as defined by National Instrument 43- 101.