TORONTO, March 30, 2012 /CNW/ - Marathon Gold Corporation (MOZ-TSX) ('Marathon') announced today its audited financial results for the year ended December 31, 2011.
At December 31, 2011, Marathon held $9.5 million in cash.
Highlights:
The operational highlights of the year include:
-- Two financings which generated gross cash proceeds of
$14,551,700.
-- Completion of 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. and triggering the formation of the
Valentine Lake 50/50 joint venture with Mountain Lake Resources
Inc.
-- Completion of 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, including 25,000 meters of drilling.
-- Completion in March 2012 of an updated mineral resource
estimate at Valentine Lake reflecting the 2011 drilling
program, with a global measured and indicated resource of
6,446,000 tonnes grading 2.05 g/t, representing 424,000 ounces
of gold, and an additional inferred resource of 5,742,000
tonnes grading 1.65 g/t, representing 305,000 ounces of gold.
-- Completion of Marathon's earn-in into a 50% interest in the
Golden Chest property by funding a total of US $3 million in
cash contributions to GCLLC.
-- Initial surface and underground drilling programs at Golden
Chest, which were reflected in the initial mineral resource
estimate on the property, with a global indicated resource of
3,107,000 tonnes grading 1.47 g/t, representing 147,000 ounces
of gold, and an additional inferred resource of 4,978,000
tonnes grading 1.46 g/t, representing 233,300 ounces of gold.
-- The acquisition of the Bonanza Mine, a historic producing
property located in northeastern Oregon.
Operating results:
Marathon's losses for the three and twelve months ended December 31, 2011 and 2010 are summarized below.
Three months ended Year ended
December 31 December 31
2011 2010 2011 2010
$ $ $ $
Expenses:
Exploration expenses 22,639 9,481 237,405 21,105
General and administrative 634,442 1,365,573 1,898,261 2,234,545
expenses
Other expense 143,916 - 143,916 -
Interest income (5,372) (4,138) (29,198) (26,451)
Unrealized loss (gain) on (11,757) (154,218) 189,474 (154,218)
warrant derivative investments
Foreign exchange loss 2,450 26 4,381 271
Loss for the period 795,825 1,216,724 2,444,239 2,075,252
This press release should be read in conjunction with Marathon's audited consolidated financial statements for the year ended December 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 is a North American gold resource development company, with projects located in the mining friendly province of Newfoundland and Labrador, the prolific Coeur d'Alene Mining District of Idaho and the historic gold rich Greenhorn District of Oregon, USA. 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 Corporation, 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 Corporation'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.
Marathon Gold Corporation
CONTACT: Marathon Gold Corporation
Jim Kirke
Chief Financial Officer
(416) 987-0710
