Marathon Gold Announces 2010 Financial Results
TORONTO, March 29 /CNW/ --
TORONTO, March 29 /CNW/ - Marathon Gold Corporation (TSX: MOZ) ('Marathon') announced today its financial results for the year ended December 31,
2010.
Marathon ended the year ended December 31, 2010 with a strong balance
sheet, with $7.6 million in cash and no debt.
Highlights:
-- Completing an earn-in into a 50% interest in the Valentine Lake
property by making a payment of $3,000,000 to Richmont Mines
Inc. and triggering the formation of the 50-50 Valentine Lake
joint venture with Mountain Lake Resources Inc.
-- Acquiring a 50% interest in Golden Chest LLC, a corporate joint
venture with New Jersey Mining Company ('NJMC') established to
carry out exploration of the Golden Chest gold mine near
Murray, Idaho.
-- Completing an updated resource estimate on Valentine Lake,
which included measured and indicated resources of 3.3 million
tonnes grading 2.6 g/t gold and an additional inferred resource
of 4.4 million tonnes grading 2.0 g/t gold.
-- Closing a private placement in December 2010 of 2,570,000
common shares that raised gross proceeds of $3,366,700, and an
additional private placement in March 2011 of 2,528,500
flow-through shares that generated gross proceeds of
$4,551,300.
Operating highlights:
Marathon's losses for the three months and years ended December 31, 2010
and 2009 are summarized below.
Three months ended Year ended
December 31 December 31
2010 2009 2010 2009
$ $ $ $
Expenses:
Exploration 9,481 49,024 21,105 324,076
expenses 549,675 26,928 1,169,808 103,135
General and 13,522 18,080 50,641 42,860
administrative 802,375 20,044 1,014,096 31,741
expenses
Depreciation
Stock based
compensation
Total operating 1,375,053 114,076 2,255,650 501,812
expenses
Interest income (4,138) (1,713) (26,451) (6,225)
Unrealized gain on (154,218) - (154,218) -
derivative 27 93 271 123
investment
Foreign exchange
loss
Loss for the year 1,216,724 112,456 2,075,252 495,710
Marathon's losses in these periods include historical exploration
expenses attributable to the properties and other assets it acquired
from Marathon PGM Corporation ('MPGM') in November 2010 and allocations
of other costs incurred by MPGM in the same periods, in accordance with
Canadian GAAP applicable to carve-out financial statements.
Marathon's accounting policy is to capitalize property acquisition and
exploration costs on its properties once a mineral resource estimate
has been completed. The decrease in exploration expenses in 2010
reflects Marathon's focus of its resources in 2010 on exploring the
Valentine Lake project, for which the Company capitalized $3.6 million
in costs.
This press release should be read in conjunction with Marathon's audited
consolidated financial statements for the year ended December 31, 2009
and the related Management's Discussion and Analysis, both of which are
available on www.sedar.com.
About Marathon Gold Corporation:
Marathon Gold Corporation ('Marathon') is one of Canada's newest gold
resource development companies, with projects located in the mining
friendly province of Newfoundland and Labrador and now a project in the
prolific Coeur d'Alene Mining District of Idaho. Marathon has a tiered
project pipeline consisting of early stage exploration to advanced
resource development projects that may be built into mineable
reserves. 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 resource development and
exploration has an established record of delivering rapid growth.
Marathon is the operator of the Valentine Lake Project under the joint
venture with MOA. For more information visit: www.marathon-gold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon Gold,
certain information contained herein constitutes 'forward-looking
statements'. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as 'expects', 'anticipates', 'plans',
'believes', 'considers', 'intends', 'targets', or negative versions
thereof and other similar expressions, or future or conditional verbs
such as 'may', 'will', 'should', 'would' and 'could'. We provide
forward-looking statements for the purpose of conveying information
about our current expectations and plans relating to the future and
readers are cautioned that such statements may not be appropriate for
other purposes. By its nature, this information is subject to inherent
risks and uncertainties that may be general or specific and which give
rise to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals and
priorities will not be achieved. These risks and uncertainties include
but are not limited to those identified and reported in Marathon Gold's
public filings, which may be accessed at www.sedar.com. Other than as specifically required by law, we undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made, or to
reflect the occurrence of unanticipated events, whether as a result of
new information, future events or results otherwise.
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Marathon Gold Corporation
Joanna Longo
President, Terra Partners
1 (416) 238 1414
Email: jlongo@terrapartners.com