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Marathon's 'fine start' in bog

Marathon Gold (TSX: MOZ) has reported its best intersection so far in step-out drilling at the Sprite Zone bog area as it resumes exploration at Valentine Lake in Newfoundland.
Marathon's 'fine start' in bog Marathon's 'fine start' in bog Marathon's 'fine start' in bog Marathon's 'fine start' in bog Marathon's 'fine start' in bog

Marathon tackles the bog zone

Staff reporter

Among the highlights, Marathon intersected 49m at 6.17g/t gold, including 10m at 22.40g/t and 6m at 7.36g/t.

"The step-out drill hole VL-18-676 is the best intersection in the Sprite Zone so far and a fine start to the summer exploration program at the Valentine gold camp," president and CEO Phillip Walford said.

The company released a positive preliminary economic assessment for the project last month, which outlined a preproduction capex of US$380 million, average annual production of 188,500 ounces of gold over the first 10 years and a 2.8-year payback. 

Walford said Marathon's current goal was to discover new gold deposits and increase the measured and indicated gold resources ahead of a prefeasibility study.

The project currently contains 2.137 million ounces of gold in four, near-surface deposits.

Shares in the company, which hit a 52-week low in early May of C85c, closed up 2.2% to 93c, valuing it at $137.2 million.