Marathon Gold Announces 2011 Q2 Financial Results
TORONTO, Aug. 11, 2011 /CNW/ --
TORONTO, Aug. 11, 2011 /CNW/ - Marathon Gold Corporation (MOZ-TSX) ('Marathon') announced today its financial results for the three and six months ended
June 30, 2011.
Marathon ended the period ended June 30, 2011 with $6.1 million in cash.
Highlights:
-- Completed the earn-in for a 50% interest in the Valentine Lake
gold property by making a payment of $3,000,000 to Richmont
Mines Inc., triggering the formation of the Valentine Lake
50/50 joint venture with Mountain Lake Resources Inc.
-- Completed an updated NI43-101 resource estimate on Valentine
Lake based on drilling results from the 2010 drilling campaign,
which included measured and indicated resources of 3.3 million
tonnes grading 2.6 g/t gold, representing a total of 277,000
ounces of gold, and an additional inferred resource of 4.4
million tonnes grading 2.0 g/t gold, representing an inferred
resource of 285,000 ounces.
-- Continued work on an extensive 2011 work program at Valentine
Lake focused on expanding the existing resource at Leprechaun
Pond and preliminary drilling at the Valentine East and Sprite
zones, with 15,496 meters out of a planned 25,000 meter
drilling program complete to date.
-- Funded US $1 million in cash payments to Golden Chest LLC
stipulated under the operating agreement between Marathon and
New Jersey Mining Company, required to complete the earn-in to
Marathon's 50% interest in the Golden Chest property.
-- Closed a private placement of flow-through common shares in
March 2011 of 2,528,500 flow-through shares that generated
gross proceeds of $4,551,300.
-- Completed initial prospecting and ground exploration programs
at the Finger Pond and Barachois Brook exploration stage
properties in Newfoundland.
Operating highlights:
Marathon's losses for the three and six months ended June 30, 2011 and
2010 are summarized below.
Three months ended Six months ended
June 30 June 30
2011 2010 2011 2010
$ $ $ $
Expenses:
Exploration expenses 33,215 615 39,402 5,597
General and
administrative expenses 425,326 453,543 860,748 688,953
Total expenses 458,541 454,158 900,150 694,550
Interest income (13,306) (8,067) (13,383) (13,519)
Unrealized loss on warrant 123,784 -
derivatives 109,002 -
Foreign exchange (287) 431 (377) 431
Loss for the period 568,732 446,522 995,392 681,462
Other comprehensive income:
Currency translation
adjustment 9,403 - 37,853 -
Unrealized loss in fair
value of
investments classified
as available for sale 60,506 - 23,533 -
Comprehensive loss for the 638,641 446,522
period 1,056,778 681,462
This press release should be read in conjunction with Marathon's
unaudited condensed interim consolidated financial statements for the
period ended June 30, 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 is one of Canada's newest gold resource
development companies, with projects located in the mining friendly
province of Newfoundland and Labrador together with a project in the
prolific Coeur d'Alene Mining District of Idaho. Marathon has a project
pipeline consisting of early stage exploration to advanced resource
development projects. 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 exploration and
resource development has an established record of delivering rapid
growth. 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/11/c3078.html
Marathon Gold Corporation
Jim Kirke
Chief Financial Officer
(416) 987-0710