Marathon's June 30 working capital at $3.7-million Marathon's June 30 working capital at $3.7-million
Marathon Gold Corp (C:MOZ)
Shares Issued 105,996,502
Last Close 8/12/2016 $0.67
Monday August 15 2016 - News Release
Mr. Jim Kirke reports
MARATHON GOLD ANNOUNCES Q2 2016 FINANCIAL RESULTS
Marathon Gold Corp. has released its financial results for the period ended June 30, 2016.
Highlights:
At June 30, 2016 Marathon had $3.7 million in cash and working capital. On May 6, 2016, Marathon closed a bought deal private placement of units and flow-through shares which raised aggregate gross proceeds of $3 million. The proceeds from this financing are funding Marathon's summer drilling program, which commenced in early June and will run to the end of the third quarter of 2016, along with an accompanying program of geological mapping, prospecting, surface sampling and trenching.
Marathon began work in March on a two-phase metallurgical testing program, approximately 75% of the costs of which are being underwritten by the Research and Development Corporation of Newfoundland and Labrador. This work is focused on material from the Leprechaun and Marathon Deposits, which together represent over 90% of the current measured and indicated resource associated with the Valentine Gold Camp.
The first phase of this program is focused on assessing the amenability of mineralized material from the Leprechaun and Marathon Deposits to low-cost heap leaching, which could provide options to reduce both capital and operating costs significantly in production. Column testing on samples of mineralized material from the Leprechaun and Marathon Deposits crushed to -0.50" and -0.75" is underway, with gold recoveries continuing after 125 days of leaching. The column tests will be concluded on August 15, and Marathon will report definitive recoveries as assays to determine the remaining gold in each sample are completed. Management expects that definitive recoveries will be reported during the third quarter, with definitive results on the -0.50" sized samples being reported first in early September.
A second phase of metallurgical testing is focused on determining the potential recoveries that may be achieved by processing mineralized material from the Marathon Deposit using a conventional processing flowsheet consisting of milling, flotation, and cyanidation of concentrate. This work is also expected to be completed by the end of the third quarter.
Marathon completed a short program of widely spaced exploration drilling in the first quarter of 2016, covering a total of 13 holes over 2,062 meters. This drilling was focused on areas of the property to the southwest of the Marathon Deposit characterized by bogs and forests without outcrop and not amenable to drilling outside the winter months. This aggressive step-out drill program, which followed on from the results of the fall 2015 drilling program, extended the strike length of the Marathon trend by 800 meters to more than 1.6 kilometers.
Following completion of its financing in May 2016, Marathon commenced work on its summer program of in-fill, step-out and exploration drilling. This program is focused primarily on expanding the Marathon Deposit resource. At the Marathon Deposit, a total of 21 new holes and three extensions of existing holes drilled in 2015 covering 4,488 meters have expanded the mineralization corridor associated with the Marathon area, both to the northwest and southwest of the Marathon Deposit resource boundary. This drilling intersected wide intervals of mineralization with higher than average grades, confirming that mineralization continues to depths in excess of 250 meters. Assays are pending for additional drilling completed at the Leprechaun and Victory Deposits.
Based on the positive drilling results at Marathon to date, the summer drilling program, which was originally planned to cover 7,500 meters of drilling, has been expanded to 10,000 meters. The remaining drilling associated with Marathon's summer program in expected to be complete by the end of the third quarter.
Marathon is also carrying out a program of mapping and prospecting along the Sprite/Marathon trend proximal to the Valentine Lake Thrust Fault and to the northeast of the Victory Deposit. Assays are pending for this work.
Operating Results:
Marathon's results of operations for the three and six months ended June 30, 2016 and 2015 are summarized below. Marathon focused its exploration efforts in 2015 and 2016 exclusively on the Valentine Gold Camp and incurred no exploration costs other than holding costs related to its non-core properties.
Three months ended Six months ended June 30 June 30 2016 2015 2016 2015 ---------------------------------------------- --------- -------- --------- $ $ $ $ Expenses: Exploration expenses - 20,422 - 20,422 General and administrative expenses 243,641 280,940 485,183 577,357 Other finance expense 6,741 4,849 6,741 4,849 Interest income (1,529) (4,086) (3,073) (11,114) Loss on investments - - - 9,575 Foreign exchange loss (gain) 1,374 (340) 24,824 (3,399) ---------------------------------------------- --------- -------- --------- Loss from continuing operations before tax 250,227 301,785 513,675 597,690 Income taxes - - (415,151) (90,578) ---------------------------------------------- --------- -------- --------- Loss from continuing operations for the period 250,227 301,785 98,524 507,112 Loss from discontinued operations, net of tax - 1,073,833 - 1,073,833 ---------------------------------------------- --------- -------- --------- Net loss for the period 250,227 1,375,618 98,524 1,580,945 Net loss attributable to non- controlling interest - (513,077) - (513,077) ---------------------------------------------- --------- -------- --------- Loss attributable to Marathon Gold shareholders 250,227 862,541 98,524 1,067,868 ---------------------------------------------- --------- -------- ---------
This press release should be read in conjunction with Marathon's condensed interim consolidated financial statements for the three and six months ended June 30, 2016 and the related Management's Discussion and Analysis, both of which are available on www.sedar.com.
We seek Safe Harbor.
© 2016 Canjex Publishing Ltd.