Marathon Resources Ltd

Published : November 29th, 2007

Grows to 3.54 million ounces of PGM and gold, 4.75 million ounces of silver and 58

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Keywords :   Canada | Copper | Gold | Growth | Rhodium | Silver |

Marathon Resource Grows to 3.54 million ounces of PGM and gold, 4.75 million ounces
of silver and 585 million pounds of copper

November 29th, 2007 - Toronto, Ontario: Marathon PGM Corporation (TSX: MAR) ("Marathon" or "the Company") is pleased to announce an updated in-pit resource estimate for the Marathon PGM-Cu Project (the "Project"). The Company's 2007 drill program was designed to increase the measured and indicated resources and total resources.  This program led to an increase in measured and indicated (M&I) and inferred resources and an increase in total resources, containing 3.54 million ounces of PGM and gold and 585 million pounds of copper.  The new resource includes Rhodium and Silver, which have not been included in the economics of the deposit in the past but will be included in the upcoming Definitive Feasibility Study.  Both of these elements have been recovered during metallurgical testing. This in-pit resource will be used as the basis for a Definitive Feasibility Study, which is on schedule for completion during 2008. This larg er resource has the potential to extend the mine life well beyond the current Preliminary Economic Analysis forecast of 14 years.

Phillip Walford, President and CEO of Marathon commented "The increase in tonnage enables us to seriously evaluate a higher production rate of 22,000 tonnes per day (7.7 million tonnes per year) over the April 2007 Preliminary Economic Analysis base case rate of 18,000 tonnes per day.  This will significantly increase metal production and cash flow over the first 10 years of mine life."

Marathon's 2007 drill program was designed to increase the proportion and total size of M&I resources.  The Company drilled 180 holes totalling 38,400 metres during 2007, which when added to the prior drilling brings the total to 121,504 metres.  An NI 43-101 resource estimate was completed by independent mining consultants and Qualified Persons, Eugene Puritch, P.Eng., Tracy Armstrong, P.Geo., and Antoine Yassa, P.Geo. of P&E Mining Consultants Inc. of Brampton, Ontario ("P&E").

Table 1. Resource above $13.50/tonne NSR Cut-Off (excluding low grade)

P&E Nov 2007 Resource,  All Zones within Pit Shell

Contained Metal

Category

Tonnes

millions

Pd

g/t

Pt

g/t

Au

g/t

Cu

%

Ag

g/t

Rh

g/t

Pd oz

(000)

Pt oz

(000)

Au oz

(000)

Cu lb

million

Ag oz

(000)

Rh oz

(000)

Measured

45.9

0.87

0.24

0.09

0.31

1.59

0.01

1,284

354

133

314

2,346

15

Indicated

35.5

0.84

0.28

0.09

0.27

1.89

0.01

958

320

103

211

2,157

11

Measured + Indicated

81.4

0.86

0.26

0.09

0.29

1.72

0.01

2,242

674

236

525

4,503

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inferred

3.9

0.66

0.22

0.09

0.26

1.96

0.01

84

28

11

22

246

1


Table 2. Additional Low Grade Resource between $7.79 & $13.50/tonne NSR Cut-Off

P&E Nov 2007 Resource,  All Zones within Pit Shell

Contained Metal

Category

Tonnes

millions

Pd

g/t

Pt

g/t

Au

g/t

Cu

%

Ag

g/t

Rh

g/t

Pd oz

(000)

Pt oz

(000)

Au oz

(000)

Cu lb

million

Ag oz

(000)

Rh oz

(000)

Measured

2.0

0.38

0.12

0.05

0.14

1.56

0.01

24

8

3

6

100

1

Indicated

9.8

0.36

0.14

0.05

0.13

1.52

0.01

113

44

16

28

479

3

Measured + Indicated

11.8

0.36

0.14

0.05

0.13

1.53

0.01

137

52

19

34

579

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inferred

1.2

0.37

0.11

0.05

0.15

1.66

0.01

14

4

2

4

64

1


(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 conceptual 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.

P & E estimated this new in-pit resource including the 2007 drilling using an average external NSR cut-off of C$13.50 per tonne (See Table 1.) (based on processing costs of $7.30/t, G&A $0.49/t, and mining costs of $5.71/t). Concentrate shipping costs of $0.34/t and smelter treatment charges of $1.83/t (based on per tonne milled) are included in the NSR value. Metal prices used in P&E's estimate were Cu $US 2.50/lb, Au $US550/oz, Pt $US1,100/oz and Pd $US300/oz. The US/CDN exchange rate was $0.90. The metal prices and exchange rate utilized were based on an approximate 30 to 36 month trailing average.  Concentrate recoveries were Cu 92%, Au 60%, Pt 76% and Pd 80%, in line with metallurgical recoveries reported in February 2005 by SGS Lakefield. An additional low grade resource was defined between an NSR cut off of C$7.79/tonne and $13.50 /tonne (see Table 2.) This low grade NSR cut-off of $C7.79/tonne was derived from the internal cut-off gra de that consists of $7.30/tonne processing costs and $0.49/tonne G&A costs.

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.

Tonnages were calculated using a bulk density of 3.03 tonnes per cubic metre as determined by SGS Canada from samples taken by Eugene Puritch, P.Eng.. Model grade blocks were sized at 6.0 m wide by 12.5 m long by 6.0 m high. Inverse distance squared (ID2) interpolation was used to determine grade block values.

This mineral resource contains a high-grade lens referred to as the W Horizon.  This lens now contains over 1.5 million tonnes of indicated resources.  The following table is for this high-grade zone only, which is included within the total project resource table 1 above.

Table 3. Resource Estimate for the High Grade W-Horizon  Only (included in Table 1 above)

P&E Nov 2007 Resource,  All Zones within Pit Shell

Contained Metal

Category

Tonnes

millions

Pd

g/t

Pt

g/t

Au

 g/t

Cu

%

Ag

g/t

Rh

g/t

Pd oz

(000)

Pt oz

(000)

Au oz

(000)

Cu lb

million

Ag oz

(000)

Rh oz

(000)

Indicated

1.5

4.88

1.70

0.29

0.24

2.01

0.07

235

82

14

8

97

3


(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 conceptual 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 2007 drilling campaign focussed on five main objectives: (1) exploration of the W Horizon (2) expansion of the Main zone at depth, (3) definition of the southern and eastern contacts of known mineralization, (4) infill drilling, and (5) ground condemnation for mine development.  These objectives were achieved and the expansion of the W horizon is an important success.

P&E believe that excellent potential exists to convert the remaining inferred resource to the measured and indicated category with a moderate amount of strategically planned infill drilling to be undertaken in early 2008.

In January 2008, a drilling program will commence in order to expand the resource and upgrade the indicated or inferred mineralization for the upcoming definitive feasibility study. This will be accomplished by a combination of step-out and in fill drilling. In addition, exploration started in 2007 will continue at the SG and WD zones located along strike and south of the Malachite zone.

Dave Good, VP of Exploration remarked "The timing of this updated resource estimate is critical to our plans given the rapid pace of exploration.  The updated pit design has highlighted key areas for drilling that will continue to expand the resource. Of particular interest is the W Horizon, which has only been explored to relatively shallow depths. The SG and WD zones have potential to add resources and ultimately extend mine life.  This success is in large part due to the hard work of our exploration crew in Marathon."

All exploration work is being performed under the guidance and supervision of Phillip C. Walford, President and Chief Executive Officer of the Company, a professional geologist and Qualified Person as defined by National Instrument 43-101. Mr. Walford has approved the contents of this press release.

About Marathon PGM Corporation
The Company has a 100-per-cent interest in the Marathon PGM -- Cu project, located about 10 kilometers north of Marathon, Ont. The project is currently undergoing a definitive feasibility study and a 40,000 m drill campaign was completed in September 2007. As announced previously, the Company has completed a revised preliminary economic assessment in compliance with the provisions of National Instrument 43-101, showing a measured resource of 39.2 million tonnes containing 1.6 million ounces of PGM and gold and 285 million pounds of copper, and an indicated resource of 28.9 million tonnes containing 1.1 mil lion ounces of PGM and gold and 178 million pounds of copper. An additional low-grade resource was also identified in the report completed by P&E Mining Consultants Inc. and filed on SEDAR on April 5, 2007.

As part of its growth strategy, in April 2007, Marathon entered into an option agreement with Gossan Resources on the Bird River Sill PGM and Cu-Ni property, located in southeastern Manitoba.  Prospecting and data compilation of the Bird River property is focused over several key areas, including the Coppermine, Page East, Page West and Galaxy Zones.  Marathon can earn-in up to a total 70% interest by completing a bankable feasibility study and arranging project financing.  In October 2007, Marathon entered into an agreement with Bird River Mines Inc on the Ore Fault and Lotus Properties, located on the eastern margin of Marathon's Bird River property. 

In August 2007, Marathon acquired the Steel Mountain PGM and Cu-Ni property in western Newfoundland and Labrador and has commenced the initial phase of exploration on this 227.5 km2 property.  The Company holds a 100% interest in the Steel Mountain property.

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, 2006. 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
gen@marathonpgm.com 
Tel: +1.416.987.0711 

For more information, please contact:
David Leng, P.Geo: dleng@marathonpgm.com
Tel:  +1.905.537.5377  
Fax: +1.416.861.1925 

FOR MEDIA INQUIRIES, PLEASE CONTACT:
VANESSA NAPOLI, VNAPOLI@RENMARKFINANCIAL.COM
 TEL: +1.514.939.3989

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Marathon Resources Ltd

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CODE : MTN.AX
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Marathon Resource is a gold and copper exploration company based in Australia.

Its main exploration properties are GLENDAMBO, BLANCHETOWN, WESTERN VICTORIA - MOYSTON, EASTERN VICTORIA, KALYMNA and MT GEE in Australia.

Marathon Resource is listed in Australia and in Germany. Its market capitalisation is AU$ 13.4 millions as of today (US$ 9.6 millions, € 8.5 millions).

Its stock quote reached its highest recent level on June 29, 2007 at AU$ 6.98, and its lowest recent point on October 18, 2013 at AU$ 0.01.

Marathon Resource has 92 210 000 shares outstanding.

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1/31/2008Quarterly Activity Statement and Appendix 5B
11/29/2007Grows to 3.54 million ounces of PGM and gold, 4.75 million o...
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