Marathon Gold Announces 2014 Financial Results
Press Releases
TORONTO, Ontario – March 31, 2015 – Marathon Gold Corporation (MOZ-TSX) (“Marathon”) announced today its financial results for the year ended December 31, 2014.
Highlights:
- At December 31, 2014, Marathon held $2.7 million in cash and $2.6 million in working capital.
- During the year ended December 31, 2014 Marathon completed five private placements of common shares, units and flow through shares which generated aggregate gross proceeds of $6.5 million.
- The proceeds of these financings and Marathon’s existing cash reserves were used to fund a drilling program in the winter of 2014, which was completed in March 2014; a successful program of focused trenching and prospecting in the Rainbow, Sprite and Marathon Areas following up on magnetic lows interpreted as splays off the Valentine Lake Thrust Fault; and a renewed drilling program which commenced in August 2014 and was completed in March 2015 focused on the existing Rainbow and Sprite Zones and the newly discovered Marathon Zone. The results of drilling throughout 2014 and the first quarter of 2015 are being incorporated into an updated mineral resource estimate for the Victory Gold Deposit and initial resource estimates for the Sprite and Marathon Zones. These resources will be completed in the second quarter of 2015.
- In the fourth quarter of 2014, Marathon determined that it would no longer fund the operations of Golden Chest LLC (“GCLLC”), the owner of the Golden Chest mining property in which Marathon holds a 52.22% interest, and began discussions to sell its interest. At December 31, 2014, Marathon reclassified the assets of GCLLC as held for sale and recognized a non-cash impairment loss of $8.2 million attributed to discontinued operations, of which $3.9 million is attributable to the non-controlling interest in GCLLC. At the date of this release, Marathon is continuing to work toward a sale of its interest in GCLLC.
Operating results:
Marathon’s results of operations for the three and twelve months ended December 31, 2014 and 2013 are summarized below. The loss from continuing operations reflects ongoing efforts by management to reduce general and administrative costs and to minimize exploration activity on its non-core mining properties.
This press release should be read in conjunction with Marathon’s audited consolidated financial statements for the year ended December 31, 2014 and the related Management’s Discussion and Analysis, both of which are available on www.sedar.com.
About Marathon Gold Corporation
Marathon Gold is a Toronto based gold resource company with exploration focused on its 100% owned Valentine Gold Camp located in central Newfoundland. The Valentine Gold Camp currently hosts two near-surface, mainly pit-shell constrained, NI 43-101 compliant gold resources totaling 816,000 oz. gold at 2.24 g/t (Measured & Indicated) and 149,000 oz. gold at 2.64 g/t (Inferred), (August, 2013). These resources, open along strike and to depth, cover less than 5% of the total length of the highly perspective Valentine Lake Thrust Fault and associated splay faults which host the majority of the gold mineralization within the property. Newly discovered gold zones, including the Sprite Zone and Marathon Zone, have returned wide intervals of near-surface good gold grades and have yet to be incorporated into new gold resources for the Valentine Gold Camp. For more information please visit www.marathon-gold.com.
For more information, please contact:
Jim Kirke
Chief Financial Officer
(416) 987-0710
IBF2
