Marathon Gold up 12% on latest Newfoundland drilling

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Marathon Gold Corp. [MOZ-TSX, OTC-MGDPF] shares rallied Monday August 17 after the company released new results from drilling at the 100%-owned Valentine Gold Project in central Newfoundland.

Shares were up 12% or 27 cents to $2.53 on volume of 929,825 share traded.

The results represent assay data from nine holes located on the new Berry Zone within the six-kilometre long Sprite Corridor, which in turn is situated between the project’s Leprechaun and Marathon deposits.

Highlights include hole VL-20-835, which intersected 2.96 g/t gold over 47 metres, including 7.55 g/t gold over 14 metres and 32.25 g/t gold over 1.0 metre and 27.00 g/t gold over 1.0 metre.

Hole VL-20-834 returned 2.23 g/t gold over 30 metres, including 6.53 g/t gold over 8.0 metres.

Back in April, 2020, Marathon released a pre-feasibility study (PFS) for the Valentine Gold project. It envisages an open pit mining operation with low initial capital costs and a high rate of return over a 12-year mine life, with average gold production of 175,000 ounces annually in years one to nine from the processing of high-grade mill feed.

In years 10-12, the PFS indicates that processing of low-grade stockpiled material would produce an average of 54,000 ounces per year. The total all-in-sustaining cost is forecast at US$739 an ounce.

The PFS envisages a life-of-mine capital requirement of $545 million, including an initial capital cost of $272 million. The PFS is based on proven and probable reserves of 1.87 million ounces of gold (41.5 million tonnes at 1.41 g/t gold), as well as a simplified execution strategy based on open pit mining, conventional milling and thickened tailings deposition, with no heap leaching.

“The latest batch of drill assays from the new Berry Zone include additional long intersections of high-grade mineralization,” said Marathon Gold President and CEO Matt Manson.  “Our 2020 exploration program is focused on new discovery, with broad step out holes into previously untested areas,” he said.

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