Marathon Develops Two Resources on Bird River Project
TORONTO, Jan. 15 /CNW/ - Marathon PGM Corporation ("Marathon" or "the
Company", MAR-TSX) is pleased to announce resource estimates for two zones on
the Bird River Project, ("Bird River Project") located in southeast Manitoba.
The Bird River Project is a joint venture between Marathon and Gossan
Resources Inc (TSX.v-GSS). The Company's 2008 drill program was designed to
outline recoverable resources on the Page and Ore Fault Zones.
Highlights:
-----------
- combined in-situ indicated resource of 18.0 M lbs of Ni, 9.3 M lbs
of Cu, 331 K oz of Ag and 31.8 K oz of PGM+Au
- combined inferred resource of 21.6 M lbs of Ni, 14.8 M lbs of Cu,
1.069 M oz of Ag and 46.1 K oz of PGM+Au
Phillip Walford, President and CEO of Marathon commented "This is an
excellent result for our initial exploration program on the Bird River
Project. We now have a much better understanding of the geology and we are
particularly interested in expanding the resources of the Ore Fault's
copper-zinc-silver zone, which has a high metal value. Discovering this zone
was a very pleasant surprise."
Marathon completed 38 drillholes totaling 6,936 metres during 2008. The
NI 43-101 compliant resource estimates were completed by independent mining
consultants and Qualified Persons, F.H. Brown C.P.G., Pr.Sci.Nat., and Antoine
Yassa, P.Geo. of P&E Mining Consultants Inc., of Brampton, Ontario ("P&E").
Page Zone Mineralization
------------------------
The Page Zone, located 1.5 km northwest of the Ore Fault Zone, occurs
primarily as three sub-parallel lenses of disseminated to massive Ni-Cu
sulphides that strike east-west for up to 280 m. The deposit has ideal
potential for an open pit operation as mineralization is shallow (less than 75
m depth), occurs in multiple lenses approximately 10 m to 20 m thick and dips
at shallow angles (40-60 degrees) to the south.
A high grade lens of massive sulphide occurs at the west end of the Page
Zone and will be the focus of drilling for the 2009 exploration program. To
date, the best intersection in the Page Zone consists of 6.5 m @ 1.65 % Ni,
0.68 % Cu and 1.27 g/t PGM+Au.
Ore Fault Mineralization
------------------------
Mineralization at Ore Fault occurs within juxtaposed lenses of
disseminated to massive Ni-Cu sulphides and vein type Zn-Ag-Cu sulphides. The
close proximity and shallow occurrence of the sulphide lenses provide
favourable potential for an open pit operation. At deeper levels the presence
of thick and relatively high grade Ni-Cu and Zn-Ag-Cu material has potential
for underground mining.
The main Ni-Cu sulphide lens strikes for approximately 230 m, extends
down dip at 60-80 degrees for 200 m and is up to 55 m thick. The best
intersection is 53 m @ 0.82 % Ni, 0.25 % Cu and 1.15 g/t PGM+Au including
15 m @ 1.71 % Ni, 0.48 % Cu and 2.14 g/t PGM+Au. Two parallel Zn-Ag-Cu
sulphide lenses are sub-vertical and strike for approximately 100 m and extend
down dip for up to 150 m and are up to 20 m thick. To date, the best
intersection is 19.7 m @ 4.61 % Zn, 51 g/t Ag, and 0.74 % Cu.
Page Zone Mineral Resource at US$12.00/tonne NSR Cut-Off
--------------------------------------------------------
-------------------------------------------------------------------------
Category Tonnes Ni Cu Zn Ag Au Pt Pd
(x1,000) (%) (%) (%) (g/t) (g/t) (g/t) (g/t)
-------------------------------------------------------------------------
Indicated 1,498 0.32 0.13 0.01 0.90 0.02 0.07 0.28
-------------------------------------------------------------------------
Inferred 261 0.27 0.09 0.01 0.80 0.02 0.07 0.25
-------------------------------------------------------------------------
----------------------------------------------------
Contained Metals
Base Metals lbs x 1,000,000
Precious Metals ozs x 1,000
----------------------------------------------------
Category Ni Cu Zn Ag PGM
+Au
----------------------------------------------------
Indicated 10.6 4.3 0.3 4.1 17.8
----------------------------------------------------
Inferred 1.6 0.5 0.0 7.1 2.8
----------------------------------------------------
Ore Fault Mineral Resource at US$12.00/tonne NSR Cut-Off
--------------------------------------------------------
-------------------------------------------------------------------------
Category Tonnes Ni Cu Zn Ag Au Pt Pd
(x1,000) (%) (%) (%) (g/t) (g/t) (g/t) (g/t)
-------------------------------------------------------------------------
Ni Zone
-------------------------------------------------------------------------
Indicated 905 0.37 0.24 0.20 8.20 0.02 0.09 0.37
-------------------------------------------------------------------------
Inferred 2,509 0.35 0.19 0.08 7.10 0.01 0.10 0.40
-------------------------------------------------------------------------
Zn and
Cu Zone
-------------------------------------------------------------------------
Indicated 28 0.04 0.48 1.39 59.10 0.07 0.01 0.06
-------------------------------------------------------------------------
Inferred 341 0.06 0.47 2.02 44.50 0.06 0.01 0.08
-------------------------------------------------------------------------
----------------------------------------------------
Contained Metals
Base Metals lbs x 1,000,000
Precious Metals ozs x 1,000
----------------------------------------------------
Category Ni Cu Zn Ag PGM
+Au
----------------------------------------------------
Ni Zone
----------------------------------------------------
Indicated 7.4 4.8 4.0 237.9 13.9
----------------------------------------------------
Inferred 19.6 10.8 4.6 573.6 41.7
----------------------------------------------------
Zn and
Cu Zone
----------------------------------------------------
Indicated 0.0 0.3 0.9 52.6 0.1
----------------------------------------------------
Inferred 0.5 3.5 15.2 487.9 1.66
----------------------------------------------------
1. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant
issues.
2. The quantity and grade of reported inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these inferred resources as an indicated or
measured mineral resource and it is uncertain if further
exploration will result in upgrading them to an indicated or
measured mineral resource category.
The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council December
11, 2005.
Mineral Resource Estimates
P & E estimated these new resources including the 2008 drilling using an
average internal NSR cut-off of US$12.00 per tonne (based on processing costs
of US$11.00/t and G&A costs of US$1.00/t). Mining costs of US$1.50/rock tonne
were used in a pit optimization. Metal prices used in P&E's estimate were Ni
US$12.52/lb, Cu US$3.18/lb, Zn US$1.29/lb, Ag US$13.28/oz, Au US$716.00/oz, Pt
US$1,345.00/oz and Pd US$345.00/oz. The metal prices utilized were based on
the 36 month trailing average metal prices as at December 2008.
Tonnages were calculated using a bulk density of 2.96 tonnes per cubic
metre as determined from ten samples taken by Eugene Puritch, P.Eng. of P&E
during a site visit in May 2008. Model grade blocks were sized at 20.0 m wide
by 20.0 m long by 10.0 m high. Inverse distance squared (ID2) interpolation
was used to determine grade block values. Potentially economic resources were
constrained within an optimized pit shell.
Technical Report
The summary of the NI43-101 technical report will be filed within 45 days
of this press release on SEDAR and posted on the Company's web page upon
receipt from P&E.
Exploration Program 2009
The 2009 exploration program will focus on three main areas, which are
believed to have the best potential to add to the existing resources. These
areas are -
(1) a set of four untested IP geophysical anomalies located east and
south of the Ore Fault Zone;
(2) infill drilling of the Ore Fault Zone to upgrade resources from
inferred to indicated;
(3) step-out and in-fill drilling at west end of the Page Zone where
the current resource remains open
Dave Good, VP of Exploration remarked "This is a great start for the Bird
River Project and there is excellent potential to increase the size and
quality of the resource in the upcoming drill program."
Financing and Cash Resources
As at December 31, 2008 Marathon had C$16.2 million in its treasury. The
Company is well financed to advance the Bird River and Steel Mountain projects
and is examining a variety of different methods of securing the required
funding to develop the Marathon Deposit, including joint ventures, royalty
arrangements, project equity and debt instruments.
The Bird River Project is a joint venture between Marathon and Gossan
Resources Inc (TSX.v-GSS). Marathon currently owns 53% of the Project and is
able to earn a larger ownership through dilution if Gossan elects not to
participate in exploration programs. The Bird River Project is very large,
covering a strike length of 22km of the Bird River Sill. Numerous known
showings of Ni-Cu-PGM are present throughout the Bird River Sill. Marathon's
drilling to date has only tested 3km of the west end of the Bird River
Project.
Qualified Persons
The two resource estimates were prepared for P&E by F.H. Brown C.P.G.,
Pr.Sci.Nat., and Antoine Yassa, P.Geo., the independent QPs. Dr. David Good,
P. Geo., Marathon's VP of Exploration, is the Company's designated QP. Eugene
Puritch, P.Eng., President of P&E, F.H. Brown and Dr. David Good have reviewed
and approved the contents of this press release.
Cautionary Notes Concerning Estimates of Mineral Resources
This news release uses the terms indicated and inferred resources as a
relative measure of the level of confidence in the resource estimates that
occur separate from the quoted mineral reserves. Readers are cautioned that
mineral resources associated with the Bird River Project are not economic
mineral reserves and that the economic viability of resources that are not
mineral reserves has not been demonstrated. In addition, inferred resources
are considered too geologically speculative to have any economic
considerations applied to them. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher category. Under
Canadian Securities disclosure rules, estimates of inferred mineral resources
may not form the basis of feasibility or pre-feasibility studies or economic
studies except for Preliminary Assessment as defined under NI 43-101. Readers
are cautioned not to assume that further work on mineral resources will lead
to mineral reserves that can be mined economically.
About Marathon PGM Corporation:
Marathon has completed a definitive feasibility study on the Marathon
PGM-Cu deposit and also has development and exploration stage properties in
southeastern Manitoba and western Newfoundland and Labrador. The Company is
actively looking for additional projects of merit.
Cautionary Statement Regarding Forward Looking Information:
Except for statements of historical fact relating to the Company, certain
information contained herein constitutes "forward-looking statements".
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. 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, 2007. Circumstances or management's estimates or opinions
could change, and management disclaims any obligation to revise or update
forward-looking statements, whether for new information, future events or
otherwise. The reader is cautioned not to place undue reliance on
forward-looking statements.
On Behalf of Marathon PGM:
"Phillip C. Walford"
Phillip C. Walford, P.Geo.
President, Chief Executive Officer
Tel: +1.416.987.0711
gen@marathonpgm.com
%SEDAR: 00020574E
For further information: David Leng, P.Geo: Tel: (416) 849-3432, Fax: (416)
861-1925, dleng@marathonpgm.com
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