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Marathon $MOZ.T Ups Gold Estimate by 26% at Valentine Lake

Marathon Gold Corp. [MOZ-TSX, OTC-MGDPF] on Wednesday released an updated mineral resource estimate for its…

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This article was originally published by Resource World


Marathon Gold released an updated mineral resource estimate for its flagship Valentine Lake #gold project in #Newfoundland.

The latest estimate incorporates approximately 100,000 metres of drilling completed at the Berry Deposit, and the results of a 2021 reverse circulation drill program completed on the Marathon and Leprechaun Deposits.

As a result, the company is reporting a total measured and indicated resource of 4.0 million ounces of gold, a 26% increase compared to a previous estimate. The new estimate raises the tonnage level by 14% and grade by 10% from earlier estimates.

This material is contained in the Marathon, Leprechaun, Berry, Sprite and Victory deposits.

The overall estimate for the project includes a high grade open-pit measured and indicated resource (greater than 0.7 g/t gold and designated as direct mill feed in the project’s mine plan) of 3.4 million ounces (38.6 million tonnes at 2.73 g/t.

It also includes an additional inferred resource of 1.1 million ounces (20.8 million tonnes at 1.65 g/t).

The company said the newly defined Berry Deposit is a major contributor to the increased estimate as it is thought to contain an indicated resource of 1.1 million ounces (17.2 million tonnes of 1.97 g/t gold). On top of that is an inferred resource of 250,000 ounces (5.33 million tonnes at 1.49 g/t gold.

The Berry Zone is situated between the project’s Leprechaun and Marathon deposits.

On Wednesday, Marathon shares eased 5.0% or $0.06 to $1.14 on volume of 378,130. The shares are currently trading in a 52-week range of $3.73 and $1.19.

Marathon recently published a feasibility study for the project, demonstrating robust economics for a conventional open pit mining operation and a low initial capital cost and high rate of return. The feasibility study estimates an initial capital cost of $305 million.

The feasibility study also envisages a 13-year mine life, a 22-months construction and commissioning schedule.

The study forsees annual gold production of 173,000 ounces per year and $119 million of annual average free cash flow between 2024 and 2033 from the processing of high-grade mill feed. Proven and probable reserves stand at 2.05 million ounces.

“The results of this study will be incorporated into a new NI 43-101 technical report, which will constitute an updated feasibility study for the Valentine Gold Project,’’ said Marathon Gold President and CEO Matt Manson. “This work in on schedule for completion in the fourth quarter of this year,’’ Manson said.

The updated feasibility study will contain an updated estimate of capital and operating costs, and as such will comprise the control budget and schedule for the construction of the project.


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First Drill Results are 'Compelling,' High Grade

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One hole at this British Columbia property returned 75.13 grams per ton gold and 2,337 grams per ton…

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