August 2, 2007 - Toronto, Ontario: Marathon PGM Corporation (TSX: MAR) ("Marathon" or "the Company") announced today its unaudited financial results for the six months ended June 30, 2007.
- Incorporating the results of the 2006 drilling program into a revised preliminary economic assessment which showed an increase of 38% in the measured and indicated diluted resource and the extension of the expected mine life from 9 to 13.5 years.
- Selecting a consortium led by Micon International Ltd. to deliver a definitive feasibility study on the property, with completion in early 2008.
- Completion of 24,490 meters of drilling out of a planned program of 35,000 meters of infill, exploration, geotechnical, and condemnation drilling on the Marathon PGM-Cu property.
- Acquiring an option interest on the Bird River Sill project, a highly prospective Ni-Cu-PGM property located approximately 120 km from Winnipeg, Manitoba, from Gossan Resources Limited, and commencing prospecting and preparations for a fall drilling program.
Marathon's financial condition remains strong. At June 30, 2007, Marathon had working capital of $10.7 million, compared to $12.8 million at December 31, 2006, as operations and project spending amounting to $4.2 million were offset partially by $3.0 million in proceeds from the exercise of outstanding warrants and options. The Company had sufficient funds at June 30, 2007 to fund its administration, exploration and development program for the remainder of the year.
Marathon's net loss before tax for the six months ended June 30, 2007 was $1,429,678, compared to $914,263 million in 2006. The Company incurred exploration costs in connection with the Bird River Sill exploration project, as well as higher expenditures in connection with staff and occupancy costs, professional fees, investor relations costs, and non-recurring costs associated with listing the Company's shares on the Toronto Stock Exchange.
Deferred development and exploration costs incurred on the Company's Marathon PGM-Cu project totaled $4.2 million in the first six months of 2007, compared to $1.9 million in the same period in 2006, in line with an increased scope of drilling and investigative work on the deposit and activity to date on the definitive feasibility study.
This summary of financial highlights should be read in conjunction with Marathon' unaudited financial statements for the three and six months ended June 30, 2007 and the related Management's Discussion and Analysis, both of which are available on www.sedar.com. The Company's Web site may be found at http://www.marathonpgm.com.
About the Marathon PGM-Cu Project
The Company has a 100-per-cent interest in the Marathon PGM - Cu project, located about 10 kilometers north of Marathon, Ont. The project is currently undergoing a definitive feasibility study and a 35,000 meter drill campaign. As announced previously, the company has completed a revised preliminary economic assessment in compliance with the provisions of National Instrument 43-101, showing a measured resource of 39.2 million tonnes containing 1.6 million ounces of PGM and gold and 285 million pounds of copper, and an indicated resource of 28.9 million tonnes containing 1.1 million ounces of PGM and gold and 178 million pounds of copper. An additional low-grade resource was also identified in the report completed by P&E Mining Consultants Inc. and filed on SEDAR on April 5, 2007.
In April 2007, Marathon entered into an option agreement with Gossan Resources on the Bird River Sill Ni-Cu and PGM property, located in Southeastern Manitoba. Marathon is conducting exploration activities through 2007 at the Bird River Sill and will be drilling at the Page Zone in late autumn.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include but are not limited to those identified and reported in Management's Discussion and Analysis for the year ended December 31, 2006. Circumstances or management' s estimates or opinions could change, and management disclaims any obligation to revise or update forward-looking statements, whether for new information, future events or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
On Behalf of Marathon PGM
"Phillip C. Walford"
Phillip C. Walford
President, Chief Executive Officer
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