Marathon Gold Announces 2011 Q1 Financial Results
TORONTO, June 14, 2011 /CNW/ --
TORONTO, June 14, 2011 /CNW/ - Marathon Gold Corporation (MOZ-TSX) ('Marathon') announced today its financial results for the three months ended March
31, 2011.
Marathon ended the period ended March 31, 2011 with $7.6 million in cash
and no debt.
Highlights:
-- Completing Marathon's 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.
-- Commencing work on a 25,000-meter drilling program at Valentine
Lake focused on resource expansion at the Leprechaun Gold
Deposit and preliminary drilling at the Valentine East and
Sprite zones.
-- 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. An update resource
estimate reflecting the drilling completed in the first quarter
is under way and expected to be completed in the second
quarter.
-- Funding the second of five payments to Golden Chest LLC
associated with our 50% interest in the Golden Chest joint
venture with New Jersey Mining Company. New Jersey Mining, the
operator of the joint venture, has made progress in surface
drilling oriented at expanding the existing proven and probable
reserve centred on the Idaho vein, surface drilling intended to
test the Katie vein in a largely unexplored area of the mine,
and a planned 56-hole surface program intended to test the
potential for an open pit resource.
-- Closing a private placement in March 2011 of 2,528,500
flow-through shares that generated gross proceeds of
$4,551,300. After completion of this financing, Marathon had
22,915,928 shares issued and outstanding and 24,912,923 on a
fully diluted basis.
Operating highlights:
Marathon's losses for the three months ended March 31, 2011 and 2010 are
summarized below.
2011 2010
$ $
Expenses:
Exploration expenses 6,187 4,982
General and administrative expenses 435,422 235,410
Total expenses 441,609 240,392
Interest income (77) (5,452)
Unrealized gain on warrant derivatives (14,782) -
Foreign exchange gain (90) -
Loss for the period 426,660 234,940
Other comprehensive income:
Currency translation adjustment 28,450 -
Unrealized gain in fair value of investments (36,973) -
classified as available for sale
Comprehensive loss for the period 418,137 234,940
This press release should be read in conjunction with Marathon's
unaudited interim consolidated financial statements for the period
ended March 31, 2011 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
Jim Kirke
Chief Financial Officer
(416) 987-0710