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Marathon Gold Announces 2023 Third Quarter Results

Press Release

TORONTO, ON – November 13, 2023 – Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) today announces its financial results for the third quarter ending September 30, 2023, and provides an update on the Company’s activities at the Valentine Gold Project (the “Project”) in the central region of Newfoundland and Labrador (“NL”).

All figures are in Canadian dollars unless otherwise noted. Third Quarter Financial Results

  • Cash and cash equivalents at September 30, 2023 of $71.0 million and restricted cash of $244.8 million.
  • Capital Expenditures of $76.0 million for the three months ended September 30, 2023, including $73.7 million related to construction of the Project.

Third Quarter Project KPIs

  • The Project exceeded 800,000 hours of site work completed without a lost time incident.
  • At the end of the third quarter, overall completion at the Project stood at 50%.
  • During the quarter, important de-risking of the Project was achieved with the completion of earthworks at the process plant and significant advancement of earthworks at the Tailings Management Facility (“TMF”). Rock placement for the tailings dam footprint is now 96%
  • 634 Marathon employees and contractors are employed or providing services to the Project, 85% of whom are residents of Newfoundland and Labrador.
  • The Project’s cost-to-complete, including contingency, was estimated at $463 million at October 31, 2022 and C$318 million at September 30, 2023.
  • The Project remains on schedule for first gold production in the first quarter of 2025.


  • Subsequent to the end of the quarter, the Company and Calibre Mining Corp. (“Calibre”) announced that they entered into a definitive arrangement agreement pursuant to which Calibre will acquire all of the issued and outstanding common shares of Marathon it does not already own pursuant to a court-approved plan of arrangement (the “Transaction”). In connection with the Transaction, Calibre has agreed to purchase on a non-brokered private placement basis 66,666,667 common shares of Marathon at C$0.60 per share for gross proceeds of C$40 million.
  • Subsequent to the end of the quarter, the Company announced that the Minister of Environment and Climate Change, had released the proposed addition of the Berry Deposit to the Project from the provincial environmental assessment process.
  • On July 10, 2023, the Company closed a C$6.9 million non-brokered charity flow-through offering at a price of C$1.0488.
  • On August 7, 2023, the Company held a formal signing ceremony for the Socio-Economic Agreement with the Miawpukek First Nation that was concluded on May 8, 2023.
  • In the quarter, the Company announced management changes, appointing Mr. Gil Lawson in the role of Chief Operating Officer, effective October 1, 2023, replacing Tim Williams.

Financial Performance

The results of operations for the three and nine months ended September 30, 2023 are summarized below (all figures are in Canadian dollars unless otherwise noted):

(Stated in thousands of Canadian dollars) Three Months Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
General and administrative expense $ 6,643 $ 1,999 $ 12,854 $ 5,181
Finance expense, net 6,076 1,678 2,108 1,400
Other income, net (76) (40) (237) (122)
Loss before tax $ 12,643 $ 3,637 $ 14,725 $ 6,459
Deferred income tax expense 852 716 1,371 67
Net Loss $ 13,495 $ 4,353 $ 16,096 $ 6,526
Capital expenditures¹ $ 75,587 $ 33,466 $ 167,198 $ 56,060


  1. Capital expenditures are presented on a cash basis.

General and administrative expenses increased from the comparable period in 2023, due to an increase in salaries and wages, $2 million in public road repairs in the third quarter of 2023, and $1.0 million in fees related to the sale of the additional NSR to Franco-Nevada in the second quarter of 2023.

Finance expense, in the third quarter of 2023 included an unrealized foreign exchange loss of $5.2 million related to the remeasurement of financial liabilities at period end.

Capital expenditures were $42.1 million and $111.1 million higher in the three and nine months ended September 30, 2023, respectively, than the comparable period in the prior year primarily as a result of an increase in project construction capital spending and the repurchase of 0.5% of the NSR on the Project from Franco-Nevada. Major construction mobilization at the Project commenced in January 2023, with major civils work related to the process plant and principal facilities now complete, including all foundations at quarter-end. Mining of the Leprechaun pit for waste rock in support of construction of pads and haul roads and mining of the Marathon pit for the TMF is ongoing. As of the end of the third quarter, the permanent camp modules and construction of the Project’s 66 kV powerline connection to the Star Lake Generating Station have also been completed.

Qualified Persons

Disclosure of a scientific or technical nature in this news release has been approved by Mr. Gil Lawson, P. Eng. (Ont.), Chief Operating Officer for Marathon, Mr. Paolo Toscano, P.Eng. (Ont.), Senior Vice President, Projects, Engineering and Construction for Marathon, Mr. James Powell, P.Eng. (NL), Vice President, Regulatory and Government Affairs for Marathon and Mr. David Ross, P.Geo (NL), Vice President, Geology & Exploration for Marathon. Mr. Lawson, Mr. Toscano, Mr. Powell and Mr. Ross are qualified persons under National Instrument (“NI”) 43-101. Mr. Roy Eccles, P.Geo. (NL), of APEX Geoscience Ltd. is a Qualified Person for purposes of NI 43-101, is independent of Marathon and the Valentine Gold Project, and has reviewed and takes responsibility for the updated 2022 MRE prepared by John T. Boyd Company.

About Marathon

Marathon (TSX:MOZ) is a Toronto based gold company advancing its 100% -owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining

jurisdictions in the world. The Project comprises a series of five mineralized deposits along a 32-kilometre system. A December 2022 Updated Feasibility Study outlined an open pit mining and conventional milling operation producing 195,000 ounces of gold a year for 12 years within a 14.3-year mine life. The Project was released from federal and provincial environmental assessment in 2022 and construction commenced in October 2022. The Project has estimated Proven Mineral Reserves of 1.43 Moz (23.36 Mt at 1.89 g/t) and Probable Mineral Reserves of 1.27 Moz (28.22 Mt at 1.40 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 2.06 Moz (29.23 Mt at 2.19 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.90 Moz (35.40 Mt at 1.67 g/t). Additional Inferred Mineral Resources are 1.10 Moz (20.75 Mt at 1.65 g/t Au). Please see the NI 43- 101 Technical Report “Valentine Gold Project, NI 43-101 Technical Report and Feasibility Study” effective November 30, 2022, Marathon’s Annual Information Form for the year ended December 31, 2022 and other filings made with Canadian securities regulatory authorities available at for further details and assumptions relating to the Valentine Gold Project.

For more information, please contact:

Amanda Mallough Matt Manson Julie Robertson
Manager, Investor Relations President & CEO CFO
Tel: 416 855-8202

To find out more information on Marathon Gold Corporation and the Valentine Gold Project, please visit



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