Post by
Ridgeback on Feb 02, 2021 9:47am
TD update. Cheer UP
Marathon Gold Corp. (MOZ-T) C$2.78 2021 Exploration Plans Arun Lamba, CFA Event This morning, Marathon reported its 2021 exploration plans and results from recent drilling at the Valentine Gold Project (100%) in central Newfoundland.
Impact: NEUTRAL The 2021 exploration plans are expected to include 52 km of drilling at a budget of $10.5mm. This year's exploration program includes (three rigs currently at site): 1. Up to 30 km at the Berry Zone designed to increase drill density over the full 1.5 km of mineralization delineated in 2020 (in-fill drilling); 2. Up to 8 km at both the Sprite and Victory Deposits, with a view of potential resource expansion at each of these areas of historical exploration (recall, modest quantities of resources have been previously estimated at each of Victory and Sprite based on limited drilling completed prior to 2015); and 3. Up to 6 km dedicated to grassroots projects focused on new discovery.
Today's drill results represent data from 15 drill holes located within the 1.5 kilometre long Berry Zone.
Highlights — VL-20-942: 19.85 g/t over 6m; VL-20-946: 9.37 g/t over 6m; and VL-20-945: 1.61 g/t over 26m. As a reminder, a maiden resource estimate for Berry is expected toward the end of Q1/21 (a total of 42 km of drilling in 212 holes has been completed).
Valentine Resources (January 2020) — Currently total over 4 Moz (72 Mt at ~1.8 g/t) in all categories on four gold deposits, with the Leprechaun and Marathon deposits being the largest (94% of Resources).
As a reminder, the April 2020 Pre-Feasibility Study contemplated a 6.8 ktpd mine (increasing to 11 ktpd in year 4), with average annual gold production of ~145 koz (175 koz/year over the first nine years) at AISC of US$739/oz over a 12-year life. Initial capex was estimated at $272mm, post-tax IRR at 36%, and payback at 1.8 years (at US$1,350/oz).
As of December 2020, the company reported ~$51mm of cash. 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
SPEC BUY Risk: SPECULATIVE 12-Month Target Price: C$4.25 12-Month Dividend (Est.): C$0.00 12-Month Total Return: 52.9%
Comment by
KozmoT on Feb 02, 2021 12:30pm
I liked the bit at the bottom best ... "SPECULATIVE 12-Month Target Price: C$4.25"