Marathon PGM Corporation

Published : June 01st, 2009

Better Metallurgy and Economics

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Keywords :   Copper | Gold | Palladium | Platinum | Recovery |

Marathon PGM: Better Metallurgy and Economics

     TORONTO, June 1 /CNW/ - Marathon PGM Corporation ("Marathon" or "the
Company", MAR-TSX) is pleased to announce the metallurgical results of a mini
pilot plant ("MPP") run using representative samples from its 100% owned
Marathon PGM-Cu Project (the "Project") located 10 km north of Marathon,
Ontario. The metallurgical program was undertaken by Xstrata Process Support
("XPS") under the guidance of Micon International Limited ("Micon").


     -   metallurgical recoveries improved - Au up 7 %, Pt up 8 % and
         Pd up 3 %
     -   potential basis for revising DFS - reduced mine related costs and
         improved recoveries
     -   NPV increased by 47% after tax to C$113 m
     -   payback reduced by 1.5 years
     -   IRR increased by 16% to 14.4%
     -   life of mine production increased - Pd up 4.5%, Pt up 12.1%,
         Au up 9.8%

     Marathon's President and CEO, Phillip Walford noted, "These improved
recoveries strengthen the value of the Marathon Project. We have met and
successfully overcome many hurdles as the Project has advanced, which is the
result of hard work from our exceptional team."

     XPS Testing Program

     The XPS metallurgical testing program was initiated to optimize the
metallurgical flowsheet, specifically the reagent addition rates and addition
points and complement the extensive metallurgical work completed by SGS
Lakefield in 2008 that supported the Definitive Feasibility Study ("DFS") that
was issued in December 2008. The XPS metallurgical test program comprised a
number of bench scale open circuit and locked cycle tests ("LCT"), and a
continuous 5-day MPP campaign which processed about 2,000 kg of crushed
     The results of the final locked cycle test, as well as the upper quartile
results from the MPP when it was operating in steady state with no upset
conditions, are compared to the DFS results, in the table below.

                         Concentrate Grade                 Recovery
     Test           Cu %  Au g/t  Pt g/t  Pd g/t   Cu %   Au %   Pt %   Pd %
     LCT 4(1)       21.7    6.0    15.5    56.7    90.5   83.0   77.3   81.0
     MPP(1,3,4)     22.6    4.3    10.6    53.5    90.7   79.9   71.0   79.9
      Study(2)      22.0    5.3    13.3    52.9    91.0   73.0   63.0   77.0
     (1) The metallurgical sample grade was Cu 0.32 %, Pt 0.19 g/t, Pd 0.88
         g/t, Au 0.07 g/t
     (2) The life of mine reserve grade was Cu 0.27 %, Pt 0.23 g/t, Pd 0.76
         g/t, Au 0.08 g/t
     (3) The upper quartile MPP concentrate also contained Rh 0.68 g/t, Ag 72
         g/t and MgO 3.3 %
     (4) The average results achieved for the whole MPP test period were
         recoveries of 92.5%, 71.1%, 80.3% and 79.0% for Cu, Pt, Pd and Au,
         respectively, with a final average final copper concentrate grade of

     The MPP upper quartile results show an improvement in the recoveries of
gold, platinum and palladium compared to the feasibility study of
approximately 7%, 8% and 3%, respectively. Copper recovery of around 91% was
consistently achieved in all cases. This improvement in the recoveries of
these metals greatly enhances the economic viability of the Marathon PGM-Cu

     The flowsheet improvements developed by XPS include:

     -   longer flotation retention times required to optimize precious metal
     -   optimized collector and frother reagent selection, addition rates and
         addition points
     -   selection of a more affective gangue depressant reagent
     -   recycle of the scavenger cleaner tailings stream

     Although the average recoveries achieved for the entire MPP test period
were comparable to the upper quartile results, the average concentrate grade
was slightly lower. It is noted that the upper quartile concentrate grade was
similar to that achieved in the LCT and therefore these results have been
included in the project economic evaluation. Rerunning the cash flows in the
DSF and changing only the recoveries shown in the above table for the MPP test
results, the after tax discounted cash flow (DCF) and internal rate of return
(IRR) would change as shown in the following table using the same Three Year
Trailing Price, as of August, 2008 (US$3.12/lb Cu; US$345/oz Pd; US$1,340/oz
Pt; US$688/oz Au, US$13.00/oz Ag, CAD$/US$ exchange rate = 1.092).

     Production Rate
     @ 22,000 tpd                 DFS               MPP         Difference
     NPV @ 8% (after tax)   CAD$77 million    CAD$113 million         +47%
     IRR (after tax)                    12.4%              14.4%         +16%
     Payback Period                 4.7 years          3.2 years   -1.5 years
     Total Cu Produced LOM  404.9 million lbs  403.6 million lbs        -0.3%
     Total Pd Produced LOM       1,375,000 Oz       1,427,000 Oz        +4.5%
     Total Pt Produced LOM         330,000 Oz         372,000 Oz       +12.1%
     Total Au Produced LOM         133,000 Oz         146,000 Oz        +9.8%

     Marathon is considering revising the DFS to encompass the revised
metallurgical flowsheet and these new recovery data. In light of the recent
decline in costs of most of the materials used in construction and operation
of the proposed mine, Marathon also believes that this is an opportune time to
review both the project capital and operating cost estimates.

     Qualified Person

     The Marathon DFS was prepared by Micon International under the
supervision of Richard Gowans P.Eng., the independent qualified person (QP).
Mr. Gowans is President and Principal Metallurgist with Micon International
Limited ("Micon"). Mr. Phillip Walford, P.Geo., President and CEO for
Marathon, is the Company's designated QP for the purposes of the DFS. Mr.
Gowans and Mr. Walford have reviewed and approved the contents of this press

     About Marathon PGM Corporation:

     Marathon completed a definitive feasibility study on the Marathon PGM-Cu
deposit in December of 2008. Marathon also has development and exploration
stage properties in southeastern Manitoba and western Newfoundland,
respectively. Marathon's management plans to build on its experience through
the advancement of its properties and by examining other strategic


     Except for statements of historical fact relating to Marathon, 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 Management's Discussion and Analysis for the year ended
December 31, 2008.
     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.

     On Behalf of Marathon PGM:

     "Phillip C. Walford"

     Phillip C. Walford, P.Geo.
     President, Chief Executive Officer
     Tel: (416) 987.0711;

     %SEDAR: 00020574E
For further information: David Leng, P.Geo., Tel: (416) 849-3432, Fax: (416)

. <

Marathon PGM Corporation

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Marathon PGM is a nickel and zinc exploration company based in Canada.

Marathon PGM holds various exploration projects in Canada.

Its main exploration properties are BIRD RIVER - PAGE BLOCK, BIRD RIVER - ZN & CU ZONE, BIRD RIVER - NI ZONE, MARATHON and GEORDIE LAKE in Canada.

Marathon PGM is listed in Canada and in United States of America. Its market capitalisation is CA$ 9.2 millions as of today (US$ 7.1 millions, € 6.2 millions).

Its stock quote reached its lowest recent point on August 14, 1998 at CA$ 0.02, and its highest recent level on June 03, 2011 at CA$ 7.50.

Marathon PGM has 17 700 000 shares outstanding.

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Financings of Marathon PGM Corporation
12/18/2009 Closes First Tranche of Non-Brokered Private Placement Flow...
Nominations of Marathon PGM Corporation
8/8/2007 appoints Raymond Mason as VP of Operations
Financials of Marathon PGM Corporation
8/15/2008Announces 2008 Q2 Financial Results
11/14/2007 Announces 2007 Q3 Financial Results
8/2/2007 Announces 2007 Q2 Financial Results
5/15/2007Announces 2007 Q1 Financial Results
Project news of Marathon PGM Corporation
9/12/2013(Marathon)Marathon Trenching Adds 300m Strike-length to Mineralized Zo...
7/27/2010Cu Project Advances: Permitting, Financing and Metallurgy
7/21/2010(Marathon)Hits 33.54 g/t (uncut) Gold Across 4 m (0.98 oz/ton uncut ac...
3/22/2010(Geordie Lake)Excellent Geordie Lake Drill Results
11/24/2009(Marathon) Receives Optimized Definitive Feasibility Study - Significa...
10/7/2009(Geordie Lake)Development Plans for Geordie Lake Deposit
9/29/2009(Marathon) Wraps Up 2009 Campaign with 4.31 g/t PGM+Au and 0.19% Cu ov...
9/16/2009(Marathon)Drilling Program Hits High Grade Outside Pit Shell
9/10/2009(Marathon)Announces Analyst Day at Marathon PGM-Cu Project
9/8/2009(Marathon)Marathon's Drilling Pushing New Boundaries
7/6/2009(Marathon)Project DFS Being Optimized
6/10/2009(Marathon)Completes Purchase of Bamoos Land Package
6/12/2009(Bird River - Page Block)Marathon Intersects Sulphide Lenses at Coppermine Zone
6/1/2009(Marathon)Better Metallurgy and Economics
3/11/2009(Bird River - Page Block) Reports Positive Drill Results at Bird River
2/27/2009(Bird River - Page Block)Bird River Resource Expansion Continues
2/3/2009(Bird River - Page Block)Marathon Files Technical Report on Feasibility Study and Res...
1/15/2009(Bird River - Page Block) Develops Two Resources on Bird River Project
12/19/2008(Marathon)Project Receives Positive Feasibility Study
11/6/2008(Marathon)Project Receives Support from Pic River First Nation
8/12/2008Definitive Feasibility Study Update
7/29/2008(Marathon)Hits Thickest Ever Intersection of PGM-Cu Mineralization, 18...
7/16/2008(Bird River - Page Block)Ore Fault Drilling Hits 4.5m of 1.32% Ni, 0.14% Cu, and 1.31...
1/28/2008(Marathon) Entering into Option and JV Agreement with Benton Resources...
12/12/2007(Bird River - Page Block)Reviews Progress of 2007 and Plans for 2008
10/24/2007(Marathon)reports final holes of 2007 campaign and hits thickest ever ...
9/11/2007 intersects 44 m of 1.48 g/t PGM and gold and 0.36% copper o...
7/26/2007(Marathon)Drilling intersects 14.6 g/t PGM and gold and 0.18% copper o...
4/18/2007(Marathon)drills 8 m of 3.1 g/t PGM+Au in W Zone
4/4/2007(Marathon)drilling continues to expand W and RD Zones
3/21/2007(Marathon)Drilling Expands High Grade W Zone and Establishes New Poten...
2/17/2007(Marathon)hits high-grade Palladium, Platinum and Rhodium in 2 holes, ...
Corporate news of Marathon PGM Corporation
7/28/2015Marret Resource Corp. Releases Q2 2015 Financial Statements
7/17/2015Marret Asset Management Inc. - Issuance of Early Warning Rep...
7/7/2015Marret Resource Corp. Announces Record Date and Distribution
6/29/2015Marret Resource Corp. Announces Results of Annual and Specia...
5/12/2015IIROC Trade Resumption - MAR
5/12/2015Marret Resource Corp. announces shareholder proposal
5/12/2015IIROC Trading Halt - MAR
5/6/2015Marret Resource Corp. Releases Q1 2015 Financial Statements
4/20/2015Marret Resource Corp. provides update
3/31/2015Marret Resource Corp. Releases 2014 Year End Financial State...
12/1/2014IIROC Trade Resumption - MAR
12/1/2014Marret Resource Corp. suspends dividend; Provides update
8/20/2014Marret Resource Corp. Announces Monthly Dividend
8/20/2014Marret Resource Corp. Announces Monthly Dividend
12/11/2013Completes Financing with Rambler and Announces Exploration P...
5/1/2013(Marathon)Marathon Intersects Multiple High-Grade Intervals while Unde...
1/16/2013Marret Resource Corp. announces participation in Cline Minin...
1/16/2013Marret Resource Corp. announces participation in Cline Minin...
10/6/2011(Marathon)Marathon Intersects Best Interval at the Leprechaun Gold Dep...
10/3/2011(Marathon)Marathon Continues to Expand the Leprechaun Gold Deposit wit...
8/11/2010Receives Initial Metallurgical
5/13/2010Announces 8,000 Meter Drilling
5/4/2010New Geordie Lake Resource: Increased Metals, Grade and
4/27/2010Joseph G. Spiteri Appointed to Marathon PGM
3/17/2010Drilling Confirms Near Surface Gold Mineralization at Leprec...
12/23/2009Enters Option and JV Agreement for Mountain Lake's Valentine...
8/26/2009Marathon Converting Waste to Ore
7/15/2009Improving Resources Classifications at Marathon
12/11/2008Project accepted into MPMO Projects List
9/4/2008Completes 2008 Drilling Program on BCF JV Property, Intersec...
8/27/2008Acquires Remaining Discovery Shares Pursuant to Compulsory A...
8/19/2008Growth Continues, Ore Fault Property Acquisition Completed
2/4/2008Cabo Awarded Marathon PGM Corporation Contract
1/7/2008 Fault Agreement Approved by Bird River Mines Shareholders, ...
11/1/2007Finalizes Option Agreement for Ore Fault and Plans Drill Cam...
10/11/2007and Bird River Mines Inc., Announce an Option Agreement for ...
10/4/2007 completes 40,000 m drilling campaign and expects new minera...
10/3/2007: CEO Interview
10/2/2007signs Memorandum of Understanding with the Ojibways of Pic R...
9/21/2007 Samples 7.09 g/t PGM and gold,
8/29/2007extends mineralized zone to 800 m at the Coppermine Zone, Bi...
8/24/2007acquires PGM-Ni-Cu property in the Steel Mountain Complex, N...
8/16/2007- CEO Interview
8/13/2007hits 6 m of 7.48 g/t PGM and gold and 0.06% copper in W Hori...
7/12/2007discovers additional mineralization outside perimeter of exi...
6/28/2007drilling discovers mineralization outside of resource open p...
6/25/2007drilling hits mineralization at WD zone 3 km south of Malach...
6/11/2007Promising First Results from Bird River Property for Maratho...
5/11/2007Drilling Continues Expansion of W Zone and Southern Resource
4/18/2007acquires Bird River Ni-Cu+PGM Property through option
1/25/2007Measured and Indicated In-Pit Resource Grows 39%
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