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TORONTO, Jan. 12, 2012/CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (MOZ: TSX) today announced that it has commenced an aggressive 40,000 m drilling program at the Valentine LakeProject, located in Newfoundland, Canada. Marathon recently completed a successful 2011 drilling program totaling 25,250 m at the Leprechaun Gold Deposit and the results of that drilling program are to be used in the open pit resource estimate expected in Q1 2012.
There are currently two drill rigs turning at the Valentine LakeProject with plans to add a third drill by month-end. The budget for the Valentine LakeProject is $ 11.5M for 2012. This includes 40,000 meters of drilling and other work leading to a Preliminary Economic Assessment, expected in Q4 2012.
"It is anticipated that 2012 will be an exciting year for the Company as we launch an aggressive 40,000 m drilling program and work towards development milestones. This year's drilling is focused on expanding the Leprechaun Gold Deposit along strike to the southwest and northeast as well as down dip. Efforts will also be focused on the newly discovered J. {C}Frank Zone{C}, which is located 1.5 kilometers on strike from the current deposit, and the Sprite Zone located to the north east of the current deposit. This area of focus hosts many currently known gold occurrences and covers just 4 kilometers of over 17 kilometers of favourable strike length, making this a highly prospective area for additional resources," commented Phillip Walford, President and CEO of Marathon Gold Corporation.
The Valentine LakeProject, including the Leprechaun Gold Deposit, is a 50/50 Joint Venture between Marathon Gold Corporation and Mountain Lake Resources Inc. Both companies were equal contributors to the recently completed 25,250 meter 2011 drilling program in which Marathon is the operator. A total of 150 drill holes have been completed during the 2011 drilling campaign.
2012 Goals
- A revised resource estimate for the Leprechaun Gold Deposit, including the first open pit resource estimate in the first quarter of 2012.
- 40,000 meters of drilling to further define and expand the resource centered about the Leprechaun Gold Deposit.
- Additional technical studies including more metallurgical work, more environmental work and a geotechnical study.
- Systematic exploration focusing on identifying new gold targets outside of the Leprechaun Gold Deposit, the J. Frank Zoneand the Sprite Zone will commence.
- All the work will lead to a Preliminary Economic Assessment study planned for the end of 2012.
About the Valentine LakeProject
Valentine Lakeis a 50/50 Joint Venture between Marathon Gold Corporation and Mountain Lake Resources Inc. The Leprechaun Gold Deposit is situated at the south-western end of the Valentine LakeProject, and the Valentine EastGold Zone is located 17 kilometers along strike running in a north-easterly direction. The J. Frank Zone, which currently extends over an area in excess of 850 meters in length and 250 meters in width, is located up to 1.5 kilometers southwest along strike from the current resource boundary of the Leprechaun Gold Deposit. These gold occurrences form part of a 23 kilometer long, highly prospective gold-bearing mineralized corridor. Marathon is the operator of the Joint Venture, and the companies jointly funded a $6 million2011 exploration program that included the 25,250 meters of drilling. A 40,000 m drilling program is underway.
About the Leprechaun Gold Deposit
The Leprechaun Gold Deposit has a NI 43-101 compliant Measured and Indicated Resource of 3,284,000 tonnes grading 2.62 g/t gold, for a total estimated 277,000 ounces of gold (news release, December 16, 2010). The Inferred Resource is 4,409,000 tonnes grading 2.01 g/t gold, for an estimated 285,000 ounces of gold. This Resource was estimated using a 0.5 g/t gold minimum cut-off over a 3 meter minimum width. The Leprechaun Gold Deposit is open at depth and along strike with 74% of the current Measured and Indicated ounces occurring within 150 meters of surface. A new Leprechaun Gold Deposit resource is expected to be released Q1 2012.
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, and a project in the prolific Coeur d'Alene Mining District of Idaho. 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