TD updateMarathon Gold Corp. (MOZ-T) C$3.04 Berry Infill Results Arun Lamba, CFA Jamie Carmichael, (Associate) Event This morning, Marathon reported 20 infill drill results from ongoing drilling at the Berry deposit at its Valentine Gold Project (100%) in central Newfoundland.
Impact: NEUTRAL Highlights — VL-21-1057: 2.74 g/t Au over 23m including 17.20 g/t Au over 1m and including 11.33 g/t Au over 1m and including 0.87 g/t over 14m; and VL-21-1072: 2.25 g/t Au over 22m including 10.41 g/t Au over 1m.
Today's results are from drilling along the length of the Berry Deposit in the western, eastern and saddle portions of its 1.5 km length.
The company currently has four diamond drill rigs operating at Valentine (two rigs at Berry and two rigs at Victory).
The company's planned drill program at Berry (completion expected in summer 2022) would bring total drilling to ~120 km (including the ~40 km completed in 2020).
As reminder, in April, the company released its maiden resource for Berry. Total open pit Inferred Resources were 566 koz at 1.65 g/t, representing 89% of the total estimate (639 koz at 1.75 g/t o/p and u/g). The Resource was based on 42 km of drilling (to end of November 2020).
The Berry Resource is not part of the March 2021 Feasibility Study, but could provide another potential source of ore feed and extend the mine life.
Separately, we attended an analyst tour of Marathon's Valentine Gold Project on October 19 (see Action Note).
Year-to-date, MOZ has outperformed its peers in a down market (up 5% while the GDXJ is down 16%). We expect the re-rating to continue as the company advances the project with the next major milestone being the release from the provincial EA process (anticipated in Q4/21 or Q1/22).
The company last reported cash of ~$105mm and no debt. Anticipated Timeline
Exploration Results – Ongoing
Release from EA process (main permitting milestone) — Q4/21 or Q1/22
Updated Resource – Mid-year 2022
First Gold – Q1/24 (TD estimate