UP DateMarathon Gold Corp. (MOZ-T) C$2.63 Sprite Corridor Drill Results Arun Lamba, CFA Event This morning, Marathon reported results from recent drilling at its Valentine Gold Project (100%) in central Newfoundland. Today's results represent data from 24 drill holes located within the 6 km Sprite Corridor between the Frozen Ear Pond (FEP) Road and the western margin of the Project’s Marathon Deposit.
Impact: SLIGHTLY POSITIVE The results released today represent the first drilling to be undertaken within the gap between the FEP Road and the westernmost margin of the Marathon Deposit. This 1.2 km section of the Valentine Lake Shear Zone had previously been underexplored due to poor ground conditions limiting drill access.
As a reminder, over the last few months the company has been releasing a series of drill results from the Berry Zone (maiden resource in late Q1/21E) and its 1.5 km northeastward extension to a road intersection referred to as the FEP Road (Exhibit 1).
Highlights — MAS-20-001: 4.66 g/t over 17m; MAS-20-008: 2.02 g/t over 17m; and MAS-20-017: 8.55 g/t over 4m. The strongest mineralization was seen in drill holes located closest to the Marathon Deposit (1.92 Moz M&I and 0.67 Moz Inf). According to the company, this suggests the potential for Marathon's mineralization extending up to 200 m southwest of the currently defined resource pit shell. However, additional drilling in this area is required to properly define this potential.
Drilling at Valentine has now been concluded for the 2020 season. The remaining results (8.7 km within the Berry Zone, 3.5 km between Berry and the FEP Road and 2.3 km from the Narrows prospect) are expected to be released in batches through the end of the year and into January. We estimate that the company has ~$58.7mm in cash.
As a reminder, last week, Pierre Lassonde (co-founded Franco-Nevada) had agreed to make a strategic investment of $7.5mm in the company via a nonbrokered private placement (see Flash Note). We continue to view Marathon as having an attractive project for the company to bring to production on its own, or to be acquired once permitted. Anticipated Timeline Exploration Results — Ongoing Valentine Feasibility Study — late-Q1/21E Berry Maiden Resource — late-Q1/21E Main Permit — Q4/21E