Mr. Phillip Walford reports
MARATHON GOLD ANNOUNCES RESOURCE UPDATE FOR VALENTINE LAKE PROPERTY: 1.4 MILLION OZ (M&I) AT 1.91 G/T AU AND 766,500 OZ (INFERRED) AT 2.24 G/T AU
Marathon Gold Corp. has released a new mineral resource estimate for its 100-per-cent-owned Valentine Lake property that was prepared under the direction of Micon International Ltd. in accordance with National Instrument 43-101.
The mineral resource is summarized in the table. The propertywide measured and indicated resource has increased by 31 per cent from 1.06 million ounces gold at a grade of 2.20 grams per tonne to 1,388,200 ounces Au at a grade of 1.91 g/t, with 93 per cent of the measured and indicated resource occurring in the open-pit resource category for the Valentine Lake property. The inferred resource has almost tripled to 766,500 ounces Au at a grade of 2.24 g/t Au.
This significant growth in gold resources at the Valentine Lake property is attributed to the success of the company's recent drilling at the Marathon deposit. The new measured and indicated resource is 483,800 ounces at a grade of 1.72 g/t Au as compared with the previous April, 2015, measured and indicated resource of 195,600 ounces at a grade of 1.98 g/t Au. The inferred resource has increased from 23,800 ounces at a grade of 2.64 g/t Au to 583,400 ounces at a grade of 2.20 g/t Au. The overall inferred grade is higher than measured and indicated grade in the Marathon deposit because of the large amount of underground inferred at a 3.18 g/t grade.
The Marathon deposit consists of a 40- to 100-metre-wide, near-vertical corridor of alteration and mineralization that is open along strike and to depth, and hosts flat laying, en echelon quartz-tourmaline-pyrite gold-bearing vein arrays. The thickness and grades of these QTP vein arrays vary throughout the mineralized corridor. Current drilling has defined a mineralized corridor that has a 150 m long strike length at 100 m below surface, and this strike length increases to more than 400 m at 200 m below surface. A series of recent near-vertical drill holes, designed to drill normal (90 degrees) to and down through the gentle southwest-dipping en echelon stacked QTP vein arrays, successfully intersected gold mineralization from near surface to a vertical depth of over 500 metres. The focus of 2017 drilling campaign is to continue expanding the resources at the Marathon deposit.
"The new resource estimation at the Valentine Lake gold camp puts Marathon into a new category with just over 1.4 million ounces of measured and indicated resource at a good grade," said Phillip Walford, president and chief executive officer of Marathon. "The Marathon deposit is a game changer with the discovery of the wide, near-vertical mineralized corridor that contains consistent stacking of en echelon QTP vein swarms for more than 500 m depth. I am very excited about the potential of expanding the strike length and depth of this mineralized corridor and the impact it will have on our planning as we move forward at the Valentine gold camp."
Immediate exploration plans involve an experimental geophysical method to detect QTP vein swarms located beneath overburden along a two-kilometre strike length southwest of the Marathon deposit. Future drilling at the Marathon deposit will involve drill holes orientated both oblique and parallel to the mineralized corridor. The oblique drill holes will further define the width and geometry of the mineralized structure while the parallel holes will further define grades and true thicknesses of the en echelon stacked vein arrays. Additional drilling will occur at the Leprechaun and Sprite deposits, as well as at other new gold showings. The focus of the 2017 drilling campaign will be the rapid increase of both open pit and underground resources. The number of drills on site at the Valentine Lake property is planned to increase after the spring break in order to facilitate additional resource development.
Later this year, with further drilling success, Marathon expects to consider commissioning a preliminary economic assessment (PEA). In the meantime, a resource update may be justified by favourable drill results prior to commencing the PEA.
Highlights of the resource
- Measured and indicated resources gold contents have increased by 31 per cent while inferred resources gold content has increased by 284 per cent for the Valentine Lake property.
- Open pit and underground ounces have increased significantly since the April, 2015, resource.
- All of the new open pit resources are in the two g/t Au range at the Valentine Lake property.
- The in pit resources represent 93 per cent of the measured and indicated resources.
- The underground resources at the Marathon deposit are the largest to date on the property.
- The subvertical mineralized corridor of the Marathon deposit has a current drilled strike length of over 400 m, extends to depth for more than 500 m and is open in all directions.
- All four of the known gold deposits at the Valentine Lake property are open along strike and to depth.
- The 30,000 m 2017 drilling campaign is under way at the Valentine Lake property, with drilling focused on increasing resources at the Marathon deposit.
VALENTINE LAKE RESOURCE ESTIMATE
Deposit/category Open pit Underground Total
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(kt) (g/t) (oz) (kt) (g/t) (oz) (kt) (g/t) (oz)
Marathon deposit
Measured 1,153 1.73 64,100 3 2.71 300 1,156 1.73 64,400
Indicated 7,514 1.70 411,800 80 2.94 7,600 7,594 1.72 419,400
M+I 8,667 1.71 475,900 83 2.93 7,900 8,750 1.72 483,800
Inferred 6,842 1.99 437,500 1,428 3.18 145,900 8,270 2.20 583,400
Leprechaun
Measured 4,096 2.00 263,000 50 5.00 8,100 4,146 2.04 271,100
Indicated 7,797 1.91 479,000 543 3.71 64,800 8,340 2.03 543,800
M+I 11,893 1.94 742,000 593 3.82 72,900 12,486 2.03 814,900
Inferred 1,758 1.89 106,700 291 4.32 40,400 2,049 2.24 147,100
Sprite deposit
Measured 0 0 0 0 0 0 0 0 0
Indicated 301 2.033 19,700 36 4.734 5,500 337 2.32 25,200
M+I 301 2.03 19,700 36 4.73 5,500 337 2.32 25,200
Inferred 158 2.72 13,800 49 5.277 8,300 207 3.33 22,100
Victory deposit
Measured 0 0 0 0 0 0 0 0 0
Indicated 939 1.829 55,200 58 4.889 9,100 997 2.01 64,300
M+I 939 1.83 55,200 58 4.89 9,100 997 2.01 64,300
Inferred 80 1.801 4,600 62 4.644 9,300 142 3.04 13,900
Total measured 5,249 1.94 327,100 53 4.87 8,400 5,302 1.97 335,500
Total indicated 16,551 1.81 965,700 717 3.77 87,000 17,268 1.90 1,052,700
Total M+I 21,800 1.84 1,292,800 770 3.85 95,400 22,570 1.91 1,388,200
Total inferred 8,838 1.98 562,600 1,830 3.47 203,900 10,668 2.24 766,500
The effective date for the mineral resource estimate is Feb. 16, 2017.
Notes
- Canadian Institute of Mining, Metallurgy and Petroleum definition standards were followed for mineral resources.
- The qualified person for the Leprechaun, Marathon, Sprite and Victory mineral resource estimate is Charley Murahwi, MSc, PGeo, FAusIMM.
- In pit mineral resources for Leprechaun and Marathon are reported at a cut-off grade of 0.4 g/t Au. Pit optimizations were used to constrain the resources.
- Underground mineral resources are estimated at a cut-off grade of 1.6 g/t Au, outside the open pit constraint for the Marathon deposit and two g/t Au for the narrower Leprechaun deposit.
- Mineral resources are estimated using an average long-term forecast gold price of $1,200 (U.S.) per ounce.
- The Leprechaun deposit was re-estimated using the same gold price, mining cost and recoveries as the Marathon deposit.
- Totals may not add correctly due to rounding.
- Mineral resources are not mineral reserves and do not have demonstrated economic viability.
- The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
In order to meet the criteria for reasonable prospects for economic extraction as required by CIM, the Marathon deposit block model was constrained by an optimized pit using a gold price of $1,200 (U.S.) per ounce and reasonable costs and metallurgical recovery. The material below the optimized pit was re-estimated using a cut-off grade of 1.6 g/t Au.
2017 RESOURCE VERSUS 2015 RESOURCE
Open pit Underground Total
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(kt) (g/t) (oz) (kt) (g/t) (oz) (kt) (g/t) (oz)
Total M+I (April, 2015) 13,963 2.05 919,000 1,031 4.26 141,100 14,994 2.20 1,060,100
Total M+I (February, 2017) 21,800 1.84 1,292,800 770 3.85 95,400 22,570 1.91 1,388,200
Total inferred (April, 2015) 1,678 1.96 106,000 506 5.77 93,800 2,184 2.85 199,800
Total inferred
(February, 2017) 8,838 1.98 562,600 1,830 3.47 203,900 10,668 2.24 766,500
Qualified person
The Valentine Lake property is under the direct supervision of Sherry Dunsworth, PGeo, senior vice-president of exploration for Marathon Gold. Ms. Dunsworth is defined as a qualified person as defined by National Instrument 43-101. Charley Murahwi, PGeo, FAusIMM, is employed by Micon International, is responsible for the completion of the resource updates and is an independent qualified person as defined by National Instrument 43-101.
Quality assurance/quality control
Thorough QA/QC protocols are followed on the project including the insertion of blanks and standard samples in all drill holes. The core is cut in half and one-half is retained at site; the other half is tagged and bagged and sent directly to Eastern Analytical Ltd. in Springdale, Nfld. Eastern Analytical prepares the samples and uses fire assay with an atomic absorption finish to determine the gold content. All samples above 0.10 gram per tonne in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold.
About Marathon Gold Corp.
Marathon Gold is advancing its 100-per-cent-owned Valentine Lake gold camp located in Newfoundland.
We seek Safe Harbor.
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