VANCOUVER — Marathon PGM (MAR-T) has pulled some significant drill results from the Valentine Lake gold project in central Newfoundland, about half-way through its summer exploration program.
The company has completed roughly 4.7 km of drilling as part of an 8-km summer program, targeting the Leprechaun Pond gold deposit. The latest work follows up on its initial 4 km of winter drilling on the site after the company entered into an option agreement on the property late last year.
The latest results have added 125 metres of strike length updip from the deposit that is now at 750 metres in length.
Hole 193 cut a true width of 7.8 metres grading 9.43 grams gold per tonne from 42 metres depth, extending the high-grade lens to the northeast.
Drilled to test downdip continuity, hole 189 hit a true width of 14 metres of 2.78 grams gold from 61 metres and hole 194 returned a true width of 11 metres averaging 1.52 grams gold.
In late July, the company released more results from Leprechaun including 4 metres of 33.5 grams gold, 14 metres of 2 grams gold and 7 metres carrying 5.79 grams gold.
The Leprechaun deposit currently hosts an inferred resource of 1.3 million tonnes of 10.5 grams gold for 443,000 contained ounces. The resource was developed by prior operators looking to build an underground mine, while Marathon is exploring the potential of a more economic open-pit project.
The company is currently barge-drilling on the Leprechaun and elsewhere around the deposit as it works towards releasing an updated resource estimate by year end.
Gold is hosted by sub-horizontal and steeply dipping quartz-tourmaline-pyrite veins that occur within a major regional fault zone that strikes more than 30 km across the Valentine Lake project.
Marathon is earning a 50% interest in the Valentine Lake project with future joint-venture partner Mountain Lake Resources (MOA-V). To earn in, Marathon needs to spend $3 million on exploration and development, as well as fund Mountain Lakes’ purchase of the outstanding share of the project. Currently, Richmont Mines (RIC-T, RIC-X) owns 70% of the project but has agreed to sell it to Mountain Lake for $3 million.
Marathon sees future exploration at the project, with much of the 25-km-long project being little explored.
The company recently released metallurgical test results from the project, based on 50 kg of split drill core with an average grade of 4.16 grams gold. Testing shows the company could achieve a gold recovery of more than 90% using standard gravity separation and cyanide leaching. Gravity alone achieved recoveries of 45% to 58% on samples ground to 71 and 120 microns, respectively.
Marathon’s shares traded for a little as 59¢ a year ago, but reached a high of $2.65 in April after releasing encouraging results from Leprechaun, and recently closed at $1.84. The company has 31.5 million shares outstanding.
Marathon is also developing its flagship Marathon PGM-Cu project, 10 km north of Marathon, Ont. A feasibility study was delivered in January and a formal environmental assessment process began in April. The project hosts reserves of 91.45 million tonnes of 0.83 gram palladium per tonne, 0.24 gram platinum per tonne, 0.09 gram gold, 0.25% copper and 1.44 grams silver per tonne.
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