Marathon Gold (T.MOZ)

T.MOZ, Marathon GoldNEWFOUNDLAND’S NEXT GOLD CAMP

Marathon (T.MOZ) is a Toronto based gold exploration company Marathon company focused on its 100% owned Valentine Gold Camp located in central Newfoundland. The Valentine Gold Camp currently hosts four near-surface, mainly pit-shell constrained, gold resources totaling 1,388,200 oz. gold at 1.91 g/t (Measured & Indicated) and 766,500 oz. gold at 2.24 g/t (Inferred), (February 2017). These resources, open along strike and to depth, cover less than 10% of the total length of the highly prospective Valentine Lake Thrust Fault and associated splay faults which host the majority of the gold mineralization within the property.

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New High-Grade Gold Zones in the Southwest Marathon Deposit: 17.39 g/t Au over 5.0 m, 19.63 g/t Au over 3.0 m & 4.90 g/t Au over 13.0 m, Valentine Lake Gold Camp, Newfoundland

New Drilling Results:

  • Drill holes into the southwestern end of the Marathon Deposit intersected new zones of high-grade gold in areas of previous minimal drilling (Figure 1):
    • MA-18-343 intersected 17.39 g/t Au over 5.0 meters with 42.76 g/t Au over 2.0 meters
    • MA-18-341 intersected 19.63 g/t Au over 3.0 meters with 56.04 g/t Au over 1.0 meters
    • MA-18-337 intersected 4.90 g/t Au over 13.0 meters with 24.49 g/t Au over 3.0 meters
    • MA-18-336 intersected 4.96 g/t Au over 9.0 meters with 18.21 g/t Au over 2.0 meters
  • Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is excited by our continued success in predicting and intersecting high-grade gold mineralization at open-pit depths in the southwestern part of the Marathon Deposit (Figure 1). Drill holes MA-18-336 to MA-18-339, MA-18-341, MA-18-343 and extended drill hole MA-17-216 all succeeded in intersecting significant intervals of good gold grades as we continue to further define the main mineralized corridor in this southwestern part of the Marathon Deposit; focusing on widening the shallow open pit resources and decreasing strip ratio.
  • Dec 3rd, 2018 Drill Map

  • “We are pleased to be announcing these encouraging drilling results from the later stages of our 2018 drilling program”, said Phillip Walford, President and CEO of Marathon Gold. “We continue to intersect high-grade gold over wide intervals at open-pit depths which will be added to a resource update for the Pre-Feasibility Study. 2018 has been a very productive year at Valentine Lake. We have added 844,000 ounces of M&I and 519,000 ounces Inferred of gold to the total overall resources this year through some very challenging gold markets. As this year comes to a close, we look forward to a better gold market in 2019 as we continue to grow the largest gold deposit in Atlantic Canada.”

    TABLE 1: Significant assay intervals, Marathon Deposit, Valentine Lake Gold Camp.
    DDHSectionFromToCore Length (m)True Thickness (m)Gold g/tGold g/t (cut)*
    MA-18-3361671015816797.74.96
    including16416621.718.21
    2172301311.12.38
    including22722921.76.36
    24124432.61.50
    26727032.61.38
    27627932.63.12
    MA-18-33716720252832.92.27
    13413843.81.29
    18819132.93.18
     1932061312.44.904.77
    including20020221.924.4923.61
    MA-18-33816680121532.66.54
     11111654.32.32
    MA-18-3391675010010332.94.13
     11011332.92.20
     12412732.94.86
    MA-18-34116940364043.01.71
     677032.319.6315.95
    including686910.856.0445.00
    MA-18-34316780404332.91.00
     939632.91.44
     10110432.91.46
     17117432.91.31
     21321854.817.3910.45
    including21321521.942.7625.42
    MA-17-216 Ext16920252264129.62.28
    including25826021.67.63
    30630932.46.59
    48448732.42.98
    * No significant intervals in MA-18-340, 342, FA analysis cut to 45.0 g/t Au

    A figure accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/65a60ae5-6fc3-4a8e-80e0-8ea32e121a37

    Acknowledgments

    Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

    Quality Assurance-Quality Control (“QA/QC”)

    Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, Newfoundland. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.10 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (75-95% of core length).

    About Marathon

    Marathon is a Toronto based gold exploration company rapidly advancing its 100% owned Valentine Lake Gold Camp located in Newfoundland, one of the top mining jurisdictions in the world. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,691,400 oz. of gold at 1.85 g/t and inferred resources totaling 1,531,600 oz. of gold at 1.77 g/t. The majority of the resources occur in the Marathon and Leprechaun deposits, which also have resources below the pit shell.  Both deposits are open to depth and on strike.  Gold mineralization has been traced down over 350 meters vertically at Leprechaun and almost a kilometer at Marathon. The four deposits outlined to date occur over a 20-kilometer system of gold bearing veins, with much of the 24,000-hectare property having had little detailed exploration activity to date.

    The Valentine Lake Gold Camp is accessible by year-round road and is located in close proximity to Newfoundland’s electrical grid. Marathon maintains a 50-person all-season camp at the property. Recent metallurgical tests have demonstrated 93% to 98% recoveries via conventional milling and 50% to 70% recoveries via low cost heap leaching at both the Leprechaun and Marathon Deposits.

    To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

    For more information, please contact:
    Christopher HaldanePhillip Walford
    Investor Relations ManagerPresident and Chief Executive Officer
    Tel: 1-416-987-0714Tel:  1-416-987-0711
    E-mail: chaldane@marathon-gold.comE-mail:  pwalford@marathon-gold.com

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
    Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

     

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Marathon Drills Continue Hitting High-Grade Gold in the Southwest with 5.36 g/t Au over 11.0 meters, 3.63 g/t Au over 10 meters, and 18.40 g/t Au over 6.0 meters, Valentine Lake Gold Camp, Newfoundland

Highlights:

Drilling

  • Infill drill holes MA-18-330 and MA-18-334 succeeded in intersecting high-grade gold intervals that extend along strike to both the northeast and southwest into adjacent zones of previously drilled high-grade mineralization within the southwestern end of the Marathon Deposit open pit (Figure 1). MA-18-330 intersected 5.36 g/t Au over 11.0 meters with 10.67 g/t Au over 2.0 meters and 12.27 g/t Au over 2.0 meters, and MA-18-334 intersected 18.40 g/t Au over 6.0 meters with 104.39 g/t Au over 1.0 meter and 1.92 g/t Au over 23.0 meters with 5.45 g/t Au over 5.0 meters.
  • Drill holes MA-18-323 and MA-18-325 intersected high-grade zones of gold at both shallow and deeper levels of the open pit with MA-18-323 returning 3.63 g/t Au over 10.0 meters with 8.51 g/t Au over 3.0 meters and MA-18-325 returning 4.64 g/t Au over 5.0 meters with 10.87 g/t over 2.0 meters (Figure 1).
  • Positive drilling results from additional infill drill holes in this less drilled southwestern part of the expanding Marathon Deposit open pit included MA-18-329 with 8.22 g/t Au over 4.0 meters, MA-18-335 with 1.90 g/t Au over 5.0 meters including 6.37 g/t Au over 1.0 meter and MA-18-322 with1.55 g/t Au over 8.0 meters with 5.65 g/t Au over 1.0 meter.

Project Update

The 2019 work program is a coordinated program of infill drilling, engineering, metallurgical and environmental work planned to achieve a comprehensive and positive Preliminary Feasibility Study.

  • The 41,000-meter 2018 step-out and infill drilling program was completed at the end of October. Drilling results up to October 6th, 2018 were included into the October 30, 2018 updated resource and revised PEA. The results of drill holes received after October 6, 2018 will be used in the PFS.
  • The advanced metallurgical testing is continuing on material from both the Marathon and Leprechaun Deposits, working to optimize both mill and heap leach recoveries.
  • Planning for the winter 2019 drilling program is underway with a focus on expanding open pit resources at the Marathon deposit and Sprite Zone as well as infill drilling to reduce the amount of inferred resources in the pit shells.
  • Planning is also taking place for the geotechnical and environmental programs required for the PFS.
  • Nov 21st, Drill Map

TORONTO, Nov. 21, 2018 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce successful drilling as we continue intersecting multiple intervals of en-echelon stacked QTP veining with moderate and high-grade gold grades at open-pit depths in the southwestern part of the Marathon Deposit (Figure 1). Drill holes MA-18-330, MA-18-334, MA-18-323, and MA-18-325 all succeeded in intersecting significant intervals of good gold grades as we continue to further define the main mineralized corridor in this southwestern part of the Marathon Deposit; focusing on widening the shallow open pit resources and decreasing strip ratio.

“We are delighted with the continued success of the 2018 drilling program as we significantly increased the Valentine Lake global resources, upgraded the PEA, and found more high potential exploration targets. The coming 2019 drilling season will see our efforts focused primarily on converting strategic inferred open pit resource blocks into indicated resources” said Phillip Walford, President and CEO of Marathon Gold. The 2018 infill drilling campaign has been very successful at upgrading inferred to measured and indicated resource categories at the Marathon Deposit as well as discovering new zones of high-grade gold for further drilling within the pit shells. The results released today are part of the continued successful infill drilling program. I look forward to the drilling, metallurgy, engineering and environmental studies generating a positive Preliminary Feasibility Study in 2019.”

TABLE 1: Significant assay intervals, Marathon Deposit, Valentine Lake Gold Camp.
DDHSectionFromToCore
Length
(m)
True
Thickness
(m)
Gold g/tGold g/t
(cut)*
MA-18-32116940374032.11.54
MA-18-32217080677586.01.55
including747510.85.65
MA-18-32316940134144108.03.63
including13613932.48.51
15115875.61.05
27627932.42.45
MA-18-32516870576254.34.64
including586021.710.87
16116765.13.32
MA-18-3261699013013443.61.84
MA-18-32916730252943.28.22
MA-18-33016740141954.02.98
including151721.66.20
 2637118.85.36
including283021.610.67
including353721.612.27
MA-18-33116600131632.92.31
444843.81.10
868932.91.25
MA-18-3321674012512832.62.20
15115432.61.43
19219532.61.54
20220532.61.18
MA-18-33416740273254.81.58
666932.91.65
9910565.718.408.50
including10410511.0104.3945.00
12813132.91.65
18218532.94.75
20320632.91.32
2222452321.91.92
including23524054.85.45
25325632.92.53
MA-18-3351698012212532.92.27
14915232.91.25
26626932.91.96
27728254.81.90
including27727811.06.37
29930232.92.21
* MA-18-324, 327 and 328 previously released, FA cut to 45 g/t Au

Figure 1 accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/0f585090-4b5c-4650-95b2-ca1a4ef9832e

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

Quality Assurance-Quality Control (“QA/QC”)

Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, Newfoundland. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.10 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (70-95% of core length).

About Marathon

Marathon is a Toronto based gold exploration company rapidly advancing its 100% owned Valentine Lake Gold Camp located in Newfoundland, one of the top mining jurisdictions in the world. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,691,400 oz. of gold at 1.85 g/t and inferred resources totaling 1,531,600 oz. of gold at 1.77 g/t. The majority of the resources occur in the Marathon and Leprechaun deposits, which also have resources below the pit shell. Both deposits are open to depth and on strike. Gold mineralization has been traced down over 350 meters vertically at Leprechaun and almost a kilometer at Marathon. The four deposits outlined to date occur over a 20-kilometer system of gold bearing veins, with much of the 24,000-hectare property having had little detailed exploration activity to date.

The Valentine Lake Gold Camp is accessible by year-round road and is located in close proximity to Newfoundland’s electrical grid. Marathon maintains a 50-person all-season camp at the property. Recent metallurgical tests have demonstrated 93% to 98% recoveries via conventional milling and 50% to 70% recoveries via low cost heap leaching at both the Leprechaun and Marathon Deposits.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:
Christopher HaldanePhillip Walford
Investor Relations ManagerPresident and Chief Executive Officer
Tel: 1-416-987-0714Tel: 1-416-987-0711
E-mail: chaldane@marathon-gold.comE-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com. Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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Marathon Gold Announces Substantial Improvements in Updated PEA with 44% Increase in Recovered Gold, at the Valentine Lake Gold Camp, Newfoundland

Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce the excellent results from an updated independent Preliminary Economic Assessment study (“PEA”) on its 100% owned Valentine Lake Gold Camp that was led by John T. Boyd Company and Lycopodium Minerals Canada. The new PEA optimizes the development of the Valentine Lake Gold Camp mineral resource by open pit mining, and gold recovery by a combination of a milling circuit and heap leaching, incorporating gravity and flotation circuits with leaching of the concentrate and tails. The study is based on an initial 12-year mine life and produced an after- tax Net Present Value (“NPV”) of $493 million using a 5% discount rate. The financial model shows an after- tax Internal Rate of Return (“IRR”) of 30% and a capital payback period of 2.5 years.  All dollar figures are reported in US$ and after-tax unless stated otherwise.

Table 1 – PEA Summary

October 2018May 2018Change
Preproduction Capital$355 Million$380 Million-$25 Million
Pre-Tax NPV (5%)$834 Million$ 597 Million+$ 237 Million
Pre-Tax IRR44%34%+10%
After-Tax NPV (5%)$493 Million$367 Million+$126 Million
After- Tax IRR30%25%+5%
Pre-Tax Payback Period1.7 years2.3 years-0.6 years
After-Tax Payback Period2.5 years2.8 years-0.3 years
Mine Life 12.2 years10.2 years+2 years
Recovered Gold Ounces2,723,3001,896,300+827,000
Average Annual Production 225,100 ounces
(12-year average)
188,500 ounces
(10-year average)
+68,000 ounces
(12 year average)
LOM Average Cash Cost$603 per ounce$557 per ounce+$46 per ounce
LOM Average AISC –
All in Sustaining Costs
$666 per ounce$595 per ounce+$71 per ounce
Throughput (tonnes per day) –
Mill and Heap Leach
9,000 tpd and
9,000 tpd
7,500 tpd and
9,000 tpd
+1,500 tpd
to the mill
Mill Grade & Recovery2.2 g/t / 95%2.2 g/t / 95%
Heap Leach Grade & Recovery0.5 g/t / 59%0.5 g/t / 53%+6% recovery
Initial Production20222022
Gold Price$1,250 / oz Au$1,250 / oz Au
FX Rate (CDN$/US$)$0.769$0.787-$0.018

“This updated study has benefited from 20,000 meters of additional drilling since February 2018, 9,000 metallic screen assays on historical drill core since the last PEA resource, and an internal review of the project. For example, initial and sustaining capital costs have been cut by leasing the mining fleet instead of purchasing it. The very positive improvements in production and mine life are attributable to this year’s successful drilling program to extend the open pit resources at the Marathon Deposit, a major gold deposit that continues to grow thereby driving expansion of the project. Early near-surface higher grade resources with a low strip ratio at the Marathon Deposit enable high gold production in the early years of the operation and a fast payback of capital.  The PEA has capitalized on several opportunities identified in the May 18, 2018 PEA, and there is still room for further improvements to the mine plan and economics for the 2019 Preliminary Feasibility Study.

“The metallurgical program to improve recoveries is in progress. 2018 Marathon Deposit drill results has substantiated a modeled extension of the open pit to the southwest, 2019 drilling will focus on drilling at both the Marathon and Sprite Deposits to attempt to expand the extended mineralization, and because of the short haul to the mill and heap leach pad. The Marathon Deposit has the potential to develop an underground mine but for now it is more cost effective to find open pit resources at $10 per new ounce rather than more costly underground resources,” said Phillip Walford, President and CEO of Marathon.

Figure 1 – Valentine Lake Gold Camp Annual Gold Production
http://www.globenewswire.com/NewsRoom/AttachmentNg/b1dab561-ed2e-4b11-9f2e-932ab6f07793

Description of the Valentine Lake Project and PEA

The PEA was developed by a team of independent consultants, including Lycopodium Minerals Canada Ltd. (“Lycopodium”), John T Boyd Company (“Boyd”), Apex Geoscience Ltd. and Stantec Consulting Ltd (“Stantec”).

The Valentine Lake Project (“The Project”) is composed of four deposits: Marathon, Leprechaun, Victory and Sprite.  The mineral resource estimate was updated on October 9th, 2018 and the results are shown in Table 8.  The Sprite Deposit was excluded from mine development planning until additional exploration drilling has increased the resource.  For the Marathon, Leprechaun and Victory deposits, standard surface mining techniques will be utilized to develop three open pit mining areas.

The ultimate pit designs developed for the Valentine Lake Project are based on the results of Whittle pit optimization work. The three mining areas will be developed using a total of 17 distinct mining phases designed to approximate the optimal extraction sequence. Pit design parameters, such as wall slope angles and bench dimensions, were provided by Stantec. A mine production schedule for the entire complex was prepared by Boyd using Maptek’s Chronos scheduling software.

The Valentine Lake Project consists of two gold recovery operations:  A Milling/Flotation/Carbon in Leach plant (“Mill”) and a Heap Leach plant. The Mill will process 3.0 Mtpa of high-grade mineralized material. The plant will consist of crushing, milling, gravity recovery, flotation of gravity tails, flotation concentrate regrind, cyanidation leaching of both flotation concentrate and flotation tailings via a CIL circuit, carbon elution and gold recovery circuit. CIL tails will be treated for cyanide destruction and disposed of as tails in the tailings storage facility.

The Heap Leach pad will process 3.0 Mtpa of low-grade mineralized material from open pit operations and will consist of crushing, heap leaching and carbon-in-column gold adsorption. The loaded carbon from the Heap Leach facility will be sent to the Mill facility for gold recovery.

Table 2 – Production Schedule
http://www.globenewswire.com/NewsRoom/AttachmentNg/f75203ee-de89-4d96-93b1-5550417e4e5d

Cashflow Analysis

The results of the discounted cash flow analysis are presented in Tables 3 and 4 below. NPV, IRR and payback values for the Project are estimated on a pre-tax and after-tax basis. The base case scenario assumes a long-term gold price of US$1,250 per ounce and a discount rate of 5%. The gold price sensitivity on a pre-tax and after-tax basis demonstrates the significant potential increase in the NPV and IRR of the Project should the gold price trade in a range of US$1,300 to US$1,350 per ounce.

Table 3 – Pre-tax Cashflow and NPV Gold Price Sensitivity

 OctoberMay 
 2018 PEA2018 PEAImprovement
Life of MineYears12.210.2 
AISC – All in Sustaining Costs$/oz.$666$595 
Pre-tax Pay-back & CashflowPay-backCashflowCashflowChange
YearsUS$ MillionUS$ MillionUS$ Million
Gold Price $1,2001.9$1,116.5$774.6$341.9
Gold Price $1,2501.7$1,252.7$869.4$383.2
Gold Price $1,3001.5$1,388.8$964.3$424.6
Gold Price $1,3501.4$1,525.0$1,059.1$465.9
Pre-tax IRR & NPV @ 5%
IRRNPV @ 5%NPV @ 5%Change
US$CDN$US$ Million
Gold Price $1,20039%$731.4$522.3$209.1
Gold Price $1,25044%$833.7$596.8$236.9
Gold Price $1,30049%$936.1$671.3$264.8
Gold Price $1,35054%$1,038.4$745.8$292.6

Table 4 – After-tax Cashflow and NPV Gold Price Sensitivity

 
 October
2018 PEA
May
2018 PEA
Improvement
After-tax Pay-back & Cashflow
Pay-backCashflowCashflowChange
 
YearsUS$ MillionUS$ MillionUS$ Million
Gold Price $1,2002.8$691.3$467.6$223.7
Gold Price $1,2502.5$772.8$562.5$210.4
Gold Price $1,3002.2$854.3$616.0$238.3
Gold Price $1,3502.0$935.8$671.8$264.0
Post-tax IRR & NPV @ 5%
IRRNPV@5%NPV@5%Change
 US$ MillionUS$ MillionUS$ Million
Gold Price $1,20027%$ 431.9$ 292.2$ 139.7
Gold Price $1,25030%$ 493.2 $ 366.7 $ 126.4
Gold Price $1,30033%$ 554.4$ 408.9$ 145.5
Gold Price $1,35036%$ 615.6$ 452.7$ 162.9

After-tax cash flows reflect the impact of the Newfoundland Mining Tax, calculated based on 15% of net income from mine operations and a combined Federal and Provincial income tax rate of 30%.

Operating Cost

The PEA estimates that the Project will produce approximately 2,723,000 ounces of gold during the life of the Project, or an average of 225,100 ounces per year for years 1 to 12.

Mine operating costs were calculated from first principles using vendor-supplied estimates and Boyd’s experience with similar mining operations. Fuel costs were calculated based on vendor-provided fuel consumption and a vendor quote for diesel of US$0.94/l. Over the life of the Project, overall mining operating costs, excluding rehandle, are estimated to be US$2.10/tonne of waste plus processed mineralized material or $14.45 per tonne of processed mineralized material.  Mine operating costs increased by 27% compared to the May 2018 PEA due to increase in haul distance and an additional allowance for winter hauling conditions.

The process plant operating costs were developed by Lycopodium based on a design processing rate of 3.0 Mtpa of material for the milling circuit and 3.0 Mtpa of material for the heap leach circuit. Both circuits will normally operate 24 hours/day, and 365 days/year with 75% (6,570 hours/year) crushing plant availability and 91.3% plant utilization (nominal 8,000 hours/year operation). The process operating costs for the Project have been developed in detail according to typical industry standards applicable to gold ore processing plants.

The operating cost estimates are expressed in US$ in Q3 2018 terms and have an overall accuracy of +/-25%.

Contingency

No contingency was specified for the operating cost estimate as most costs were derived from first principles, based on metallurgical test work, reagent and consumable pricing, and industry standards.

Details of the estimated operating costs and other charges are presented in Table 5 below.

Table 5 – Operating Cost

Cost CentreTotal Operating CostProportion of
Operating
Cost
US$/yearUS$/tonne
Mineralized
Material
Plant: Milling (1)
Operating Consumables (3)$22,368,000$7.4616.6%
Plant Maintenance$1,649,000$0.551.2%
Power (4)$5,514,000$1.844.1%
Laboratory$82,000$0.030.1%
Labour (O & M)$3,444,000$1.152.6%
Subtotal Milling$33,057,000$11.0224.5%
Plant: Heap Leach (2)
Operating Consumables$3,746,000$1.252.8%
Plant Maintenance$788,000$0.260.6%
Power$592,000$0.200.4%
Laboratory$21,000$0.010.0%
Labour (O & M)$2,899,000$0.972.1%
Subtotal Heap Leach$8,046,000$2.686.0%
Common
Labour (G & A)$1,000,000$0.170.7%
G&A – Expenses$1,947,000$0.321.4%
Plant Maintenance$686,000$0.110.5%
Permanent Camp Catering$2,363,000$0.391.8%
Permanent Camp Power$98,000$0.020.1%
Subtotal Common Plant$6,094,000$1.024.5%
Subtotal Plant Operating Cost$47,197,000$7.8735.0%
 
Mining
Average of  years 1 to 12$86,683,000$14.4564.2%
Subtotal Mine Operating Section Cost$86,683,000$14.4564.2%
Water Treatment Plant
Plant Maintenance$100,000$0.020.1%
Labour (O & M)$237,000$0.040.2%
Power$4,000$0.000.0%
Others including power and Consumables$722,000$0.120.5%
Subtotal Water Treatment Plant$1,063,000$0.180.8%
Grand Total Operating Cost$134,942,000$22.49100.0%

Notes:

  1. $/t is based on mill throughput of 3.0 Mtpa.
  2. $/t is based on heap leach throughput of 3.0 Mtpa.
  3. Includes consumables for common elution, carbon regeneration & gold room areas.
  4. Includes power for elution and carbon regeneration of carbon from heap leach and mill, gold room, and mine surface loads
  5. Figures are rounded, and totals may not add correctly

Capital Cost

The capital cost estimate was based on an engineering, procurement and construction management (“EPCM”) implementation approach and typical construction contract packaging.

Equipment pricing was based on quotations and actual equipment costs from recent similar Lycopodium projects considered representative of the Project.

All costs are expressed in US$ unless otherwise stated and are based on the Q3 2018 pricing. The estimate is deemed to have an accuracy of +/- 35%. The capital cost estimate conforms to AACEI (Association for the Advancement of Cost Engineering International) Class 4 estimate standards as prescribed in recommended practice 47R11.

Contingency

Contingencies were applied to the capital cost estimate on a line-by-line basis as an allowance by assessing the level of confidence in the engineering, estimate basis and vendor or contractor information. The contingencies do not cover scope changes, design growth, or the listed qualifications and exclusions. The resultant contingency for the capital estimate is 15% before taxes and duties.

Table 6 – Capital Estimate Summary by Area

AreaTotal Inc. Project Contingency
USD
Construction Indirects$  21,257,000
Treatment Plant Costs – Heap Leach Circuit$  47,626,000
Treatment Plant Costs – Milling Circuit$  92,739,000
Reagents & Plant Services – Heap Leach Circuit$  4,030,000
Reagents & Plant Services – Milling Circuit$  21,355,000
Infrastructure$  73,192,000
Mining Equipment (Leased) and Facilities$  39,108,000
Mining Preproduction$  17,123,000
Management Costs$  22,434,000
Owners Project Costs$  16,440,000
Total Capex$  355,303,000

Sensitivities

As indicated in Figures 2 and 3 and Table 7, project cashflow and NPV are particularly sensitive to changes in the price of gold and operating costs, while relatively less sensitive to changes in recovery and capital expenditures. The table below shows the effect on the pre-tax economics of the Project increasing or decreasing the price of gold, closure costs and mill and heap leach recovery estimates by up to +/- 10%. Capital and operating costs were varied by +/-35%.

Figure 2 – NPV Sensitivity, Pre-Tax
http://www.globenewswire.com/NewsRoom/AttachmentNg/d411e0c4-d254-4b9f-bdb0-46725bbb4f92

Figure 3 – IRR Sensitivity, Pre-Tax
http://www.globenewswire.com/NewsRoom/AttachmentNg/6d0c861a-52aa-45d9-bbaf-a505e79541db

Table 7 – Sensitivities, Pre-Tax

Gold PriceNPVIRRPayback
(Years)
-10%$  577,820,00032%2.40
0%$  833,706,00044%1.68
10%$  1,089,591,00056%1.34
CAPEXNPVIRRPayback
(Years)
-35%$  996,492,00080%0.92
0%$  833,706,00044%1.68
35%$  670,920,00028%3.00
OPEXNPVIRRPayback
(Years)
-35%$  1,267,486,00064%1.24
0%$  833,706,00044%1.68
35%$  399,925,00024%3.27
Mill RecoveryNPVIRRPayback
(Years)
-2%$  788,963,00042%1.76
0%$  833,706,00044%1.68
2%$  878,449,00046%1.61
Heap Leach
Recovery
NPVIRRPayback
(Years)
-10%$  801,905,00043%1.72
0%$  833,706,00044%1.68
10%$  865,506,00045%1.65
Closure CostsNPVIRRPayback
(Years)
-10%$  835,773,00044%1.68
0%$  833,706,00044%1.68
10%$  831,639,00044%1.69

Opportunities for Project Enhancement

The PEA identified several areas where additional work will advance the Project and reduce risk. The major focus of the work planned for 2019 is summarized below:

  • The drilling program at the Marathon Deposit will involve step-out drilling to expand open pit resource along strike to the southwest and infill drilling to reduce inferred resources in the pit shell. Exploration drilling at the Sprite Deposit with continue to extend the mineralized zone northeast towards the Marathon Deposit.
  • The underground resource has not been utilized in the PEA. Infill drilling will improve the continuity of the underground mineralization. This could contribute an additional ounces to be extracted using underground mining methods.
  • Additional hydrogeological and geotechnical work will enable better open pit and underground designs.
  • Extensive metallurgical testing for the mill and the heap leach started in September 2018 at SGS-Lakefield.  Early results from crushed ore bottle role (COBR) and column tests are encouraging and confirm results of test work conducted by Thibault & Associates in 2015 and 2016. The results of the test work by SGS may improve recoveries and will be included in the pre-feasibility study scheduled for 2019.
  • Options such as high-pressure grinding rolls (“HPGR”) ahead of the heap leach and a coarser grind in the mill could also have the potential to reduce operating costs.
  • Ongoing engineering studies and permitting will continue to de-risk the Project in the future. A Pre-Feasibility is scheduled to be completed in 2019. This work will include a  detailed permitting plan which includes environmental work for an Environmental Assessment study.

Mineral Resource Estimate October 30, 2018

The project resources have increased from the previous PEA, May 18, 2019 as a result of 20,000 m of additional drilling and as a result of the addition of 9,000 metallic screen assays that are used for better measurement of coarse gold which is common on the property. Overall, all classes of resource increased significantly.

The Measured and Indicated resource tonnes increased by 35% to 45,146,000 tonnes, the grade declined by 7% to 1.854 grams per tonne and the total contained ounces Au increased by 26% to 2,691,400 ounces Au. The Inferred resource tonnes increased by 55 % to 26,856,000 tonnes, the grade decreased by 11% to 1.774 and the contained ounces Au increased by 30% to 1,531,600 ounces Au.

The slight decline in grade is not attributed to any one factor. There is a slight decrease in the bottom cut for heap leach material, there is slight reduction in the variography of the higher-grade material and we are adding slight lower grade material on the fringes of the Marathon deposit.

The increase in Inferred resource is coming from infill holes at the Marathon Deposit and step out holes to the southwest of the Marathon Deposit which are extending the resource towards the Sprite Deposit.

Additional drilling in 2019 will focus on extending the higher-grade zones in the pit shells as well as infilling open material to move Inferred resources into Indicated and Measured resources.

Table 8 – Mineral Resource Estimate

Material/
Category
Open PitUndergroundTotal
TonnesGradeGoldTonnesGradeGoldTonnesGradeGold
(t)(g/t)(oz)(t)(g/t)(oz)(t)(g/t)(oz)
Leprechaun Deposit
Measured5,760,0002.381440,80081,0003.91010,2005,841,0002.402451,000
Indicated3,010,0001.916185,50064,0003.4607,1003,074,0001.949192,600
M+I8,770,0002.221626,300145,0003.71117,3008,915,0002.246643,600
Inferred7,533,0001.476357,400388,0004.27453,3007,921,0001.613410,700
Sprite Deposit
Measured00.000000.000000.0000
Indicated708,0001.70338,8009,0002.403700717,0001.71239,500
M+I708,0001.70338,8009,0002.403700717,0001.71239,500
Inferred1,291,0001.17348,70046,0002.7024,0001,337,0001.22652,700
Marathon Deposit
Measured10,637,0001.985679,000142,0007.99036,50010,779,0002.064715,500
Indicated23,211,0001.5591,163,700513,0004.79779,10023,724,0001.6291,242,800
M+I33,848,0001.6931,842,700655,0005.489115,60034,503,0001.7651,958,300
Inferred13,784,0001.693750,1001,839,0003.862228,30015,623,0001.948978,400
Victory Deposit
Measured00.000000.000000.0000
Indicated1,009,0001.53749,9002,0001.8481001,011,0001.53850,000
M+I1,009,0001.53749,9002,0001.8481001,011,0001.53850,000
Inferred1,821,0001.26474,000155,0003.17415,8001,976,0001.41489,800
All Deposits
Measured16,397,0002.1241,119,800223,0006.50846,70016,620,0002.1831,166,500
Indicated27,938,0001.6011,437,900588,0004.60587,00028,526,0001.6631,524,900
M+I44,335,0001.7942,557,700811,0005.128133,70045,146,0001.8542,691,400
Inferred24,429,0001.5661,230,2002,428,0003.862301,40026,857,0001.7741,531,600
Notes:

1. The effective date for this mineral resource estimate for Sprite, and Victory is November 27, 2017 and is reported on a 100% ownership basis.  The effective date for the mineral resource estimate for Marathon is October 9, 2018.  The effective date for the mineral resource estimate for Leprechaun Pond is October 5, 2018.  The resources have been restated using the updated PEA economics.  All material tonnes and gold values are undiluted.

  1. Mineral Resources are calculated at a gold price of US$1,250 per troy ounce.
  1. The open pit mineral resources presented above use an economic pit shell to determine material available for open pit mining.  The underground mineral resources are that material outside of the in-pit mineral resources above the stated underground cutoff grade.
  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
  1. The mineral resources presented here were estimated using a block model with a block size of 6 m by 6 m by 6 m sub-blocked to a minimum block size of 2 m by 2 m by 2 m using ID3 methods for grade estimation.  Mineral resources for the Leprechaun and Sprite deposits are reported using an open pit gold cut-off of 0.281 g/t Au and an underground gold cut-off of 1.767 g/t Au.  Material between a 0.281 Au g/t value and 1.142 Au g/t is assumed to be processed on a heap leach.  Material above a 1.142 Au g/t is assumed to be processed in a mill.  Higher gold grades were given a limited area of influence which was applied during grade estimation by mineralized domain.  Mineral resources for the Marathon and Victory deposits are reported using an open pit gold cut-off of 0.328 g/t Au and an underground gold cut-off of 1.731 g/t Au.  Material between a 0.328 Au g/t value and 0.700 Au g/t is assumed to be processed on a heap leach.  Material above a 0.700 Au g/t is assumed to be processed in a mill.  Higher gold grades were given a limited area of influence which was applied during grade estimation by mineralized domain.
  1. The mineral resources presented here were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council May 10, 2014.
  1. Figures are rounded, and totals may not add correctly.

Report Filing

The technical report prepared in accordance with National Instrument 43-101 will be filed on SEDAR and the Company’s website within two weeks of this news release.

Qualified Persons

This news release has been reviewed and approved by the Qualified Persons noted below. The Qualified Persons have reviewed or verified all information for which they are individually responsible, including sampling, analytical, and test results underlying the information or opinions contained herein.

  • Neil Lincoln, P.Eng. – Lycopodium Minerals Canada Ltd.: processing, infrastructure, capital and operating cost estimates, economic evaluation and report compilation.
  • Robert Farmer, P.Eng. – John T Boyd Company: mineral resource estimates, mining methods, mining capital and mining operating costs.
  • Roy Eccles, P.Geo. – Apex Geoscience Ltd.:  geology, exploration, drilling, sample preparation and data verification.
  • Paul Deering, P.Eng. – Stantec Consulting Ltd. – environmental & social studies, geotechnical, tailings storage facility and heap leach pad design.

Cautionary Statement

The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Readers are cautioned that the PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Conference Call Details

Marathon Gold is hosting a Management Information Call on Tuesday, October 30,2018 at 10:00 am Eastern time (11:30 pm Newfoundland time and 7:00 am Pacific time) with the Marathon Gold executive team to discuss the results of the PEA and the way forward.

Participants:
Toll-free dial-in number (Canada/US):1-800-952-5114
Local dial-in number:416-641-6104
International dial-in numbers:https://www.confsolutions.ca/ILT?oss=7P1R8009525114
Participant passcode:3598476#

About Marathon

Marathon is a Toronto based gold exploration company rapidly advancing its 100% owned Valentine Lake Gold Camp located in Newfoundland, one of the top mining jurisdictions in the world. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,691,400 oz. of gold at 1.85 g/t and inferred resources totaling 1,531,600 oz. of gold at 1.77 g/t. The majority of the resources occur in the Marathon and Leprechaun deposits, which also have resources below the pit shell.  Both deposits are open to depth and on strike.  Gold mineralization has been traced down over 350 metres vertically at Leprechaun and almost a kilometer at Marathon. The four deposits outlined to date occur over a 20-kilometer system of gold bearing veins, with much of the 24,000-hectare property having had little detailed exploration activity to date.

The Valentine Lake Gold Camp is accessible by year-round road and is located in close proximity to Newfoundland’s electrical grid. Marathon maintains a 50-person all-season camp at the property. Recent metallurgical tests have demonstrated 93% to 98% recoveries via conventional milling and 50% to 70% recoveries via low cost heap leaching at both the Leprechaun and Marathon Deposits.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:
Christopher Haldane
Investor Relations Manager
Tel: 1-416-987-0714
E-mail: chaldane@marathon-gold.com
Phillip Walford
President and Chief Executive Officer
Tel:  1-416-987-0711
E-mail:  pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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Marathon Deposit Expanding with High-Grade Gold: 5.75 g/t Au over 16.0 meters, 5.30 g/t Au over 16.0 meters and 6.30 g/t Au over 11.0 meters, Valentine Lake Gold Camp, Newfoundland

Highlights:

Drilling

  • Drill holes MA-18-327 and MA-18-328 succeeded in extending higher-grade gold intervals further into the southwest end of the Marathon Deposit open pit (Figure 1) with MA-18-328 intersecting 5.75 g/t Au over 16.0 meters and MA-18-327 intersecting 5.65 g/t Au over 13.0 meters.
  • Infill drill holes MA-18-309, MA-18-319 and MA-18-324 succeeded in extending the main zone mineralization towards the foot wall contact with very good grade intercepts of 1.75 g/t Au over 17.0 meters in MA-18-309,  1.83 g/t Au over 20.0 meters and 6.30 g/t Au over 11.0 meters in MA-18-319 and 5.30 g/t Au over 16.0 meters  in MA-18-324 (Figure 1).
  • Drill holes MA-18-312, MA-18-313, and MA-18-316, drilled down along the outer hanging wall margin of the Marathon Deposit mineralized corridor, intersected multiple gold-bearing QTP zones to help expand the resource including 2.03 g/t Au over 12.0 meters in MA-18-316,  7.44 g/t Au over 4.0 meters, 5.04 g/t Au over 6.0 meters and 9.44 g/t Au over 3.0 meters in MA-18-313, and 6.54 g/t Au over 3.0 meters and 4.16 g/t Au over 3.0 meters in MA-18-312.

Program Update

  • The 2018 step-out and infill drilling program of 41,000 meters will be completed in the next week. The addition of the 3rd drill during the summer 2018 enabled the program to end a month early. The results from the 2018 drill program will be incorporated into the planning for the winter 2019 drilling program which will focus on expanding open pit resources at the Marathon Deposit and Sprite Zone as well as infill drilling to reduce the amount of inferred resources in the Marathon Deposit pit shell.
  • The advanced metallurgical testing continues on material from both the Marathon and Leprechaun Deposits, with the aim of optimizing both mill and heap leach
  • recoveries.

TORONTO, Oct. 24, 2018 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce our continued drilling success with intersecting multiple intervals of en-echelon stacked QTP veining with moderate and high-grade gold grades at open-pit depths in both the footwall and hanging wall margins of the main mineralized corridor of the Marathon Deposit (Figure 1). The drill holes MA-18-309, MA-18-312, MA-18-313, MA-18-319 and MA-18-324, drilled down along both the footwall and hanging wall margins of the mineralized corridor, effectively widened the mineralized corridor. They will help decrease the strip ratio for the open pit and will contribute to the re-classification of inferred material into the measured and indicated category for the next resource update. The southwest step-out holes MA-18-327 and MA-18-328 confirm the along strike continuation of abundant stacked QTP veining with good gold grades at both shallow and deeper depths in the southwestern end of the current Marathon Deposit open pit shell. Drill holes with assays pending (Figure 1) confirm the presence of shallow dipping, multiple en-echelon stacked QTP-Au veining extending further and deeper along strike to the southwest.

Sept 24th, 2018 Drill Map

Figure 1: Location of drill hole collars MA-18-309 to MA-18-320, MA-18-324, MA-18-327 and MA-18-328, Marathon Deposit

“The continued success in drilling multiple, good gold intercepts along both margins of the mineralized corridor as well as extending excellent gold grades at depth towards the southwestern end of the current resource pit shell is expected to add significantly to the upgrading of the next Marathon resource update,” said Phillip Walford, President and CEO of Marathon Gold. “The current program of delineating additional mineralization to the southwest along strike on the Marathon Deposit has been a success. The mineralization remains open southwest towards the Sprite Deposit and will be a primary focus area for drilling in the new year. We will continue to add new ounces of gold to the global resource, moving inferred material into measured and indicated resource category in advanced of the Pre-Feasibility Study.”

TABLE 1: Significant assay intervals, Marathon Deposit, Valentine Lake Gold Camp.

DDHSectionFromToCore Length (m)True Thickness (m)Gold g/tGold g/t (cut)*
MA-18-3091731037838132.61.87
5005171714.51.75
including50050221.72.94
including50550610.93.64
including50951010.93.46
including51451621.75.35
MA-18-3111703011211532.41.01
14014332.40.99
25325632.40.98
MA-18-3121718561265.70.60
11712032.94.16
25025332.96.54
MA-18-3131705013013332.60.49
25225643.47.44
26326632.69.44
33434065.15.04
including33934010.99.84
34434732.62.35
MA-18-3161701014214532.41.31
182194129.62.03
including18618932.44.57
MA-18-31817060212432.14.23
MA-18-31917060313432.90.73
21722032.91.98
24524832.93.97
2803002019.01.83
including29329411.06.48
including29729921.94.63
32332632.93.26
4494601110.56.30
including45646043.814.83
48949232.96.06
50250532.92.84
50651043.82.56
52453065.72.31
55255865.75.53
including55555611.014.65
MA-18-3201690026927343.64.21
including26927010.911.09
30430954.52.15
MA-18-32417010841001615.25.30
including848732.918.08
including9810021.98.94
12512832.91.29
22122432.91.24
23223532.93.40
27227532.91.80
27928232.91.51
MA-18-32716730101332.73.49
172365.43.87
including212321.89.45
687132.70.57
959832.72.23
12212976.34.04
including12612932.77.19
16016332.70.96
18619043.61.53
2092221311.75.654.80
including21721921.831.5225.98
24324632.72.58
MA-18-32816650202442.80.94
747953.51.44
971131611.25.75
including979810.726.19
including10410510.736.06
24925232.12.36
28829132.12.23
29530053.52.35

* Cut to 45 g/t Au.

Assays pending for MA-18-321, 322, 323, 325 and 326, no significant intervals in MA-18-314, 315 & 317, and MA-18-310 was abandoned.

Figure 1: Location of drill hole collars MA-18-309 to MA-18-320, MA-18-324, MA-18-327 and MA-18-328, Marathon Deposit.
http://www.globenewswire.com/NewsRoom/AttachmentNg/b395f897-62df-479a-a851-42a49bb2b4a5

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

Quality Assurance-Quality Control (“QA/QC”)

Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, Newfoundland. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.10 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (70-95% of core length).

About Marathon

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com and www.corebox.net.

For more information, please contact:

Christopher HaldanePhillip Walford
Investor Relations ManagerPresident and Chief Executive Officer
Tel: 1-416-987-0714Tel:  1-416-987-0711
e-mail: chaldane@marathon-gold.com e-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

 

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Infill Drilling Further Enhancing the Marathon Deposit, 1.41 g/t Au over 105.0 meters & 2.67 g/t Au over 42.0 meters, Valentine Lake Gold Camp, Newfoundland

Highlights:

Drilling

  • MA-18-305 intersected 1.41 g/t Au over 105.0 meters including 4.59 g/t Au over 6.0 meters, 7.65 g/t Au over 4.0 meters, 4.90 g/t Au over 2.0 meters and 3.51 g/t Au over 2.0 meters as well as 14.97 g/t Au over 3.0 meters and 4.34 g/t Au over 3.0 meters. This infill hole, located in the NE end of the Marathon Deposit, was designed to penetrate down through a 200-meter vertical gap between existing drill holes on section and confirms the continuity of very good gold grades in this area along the footwall margin of the mineralized corridor (Figure 1).
  • MA-18-308 intersected 2.67 g/t Au over 42.0 meters including 12.84 g/t Au over 4.0 meters, 7.23 g/t Au over 2.0 meters and 7.22 g/t Au over 2.0 meters as well as 11.93 g/t Au over 5.0 meters with 28.34 g/t Au over 2.0 meters and 2.93 g/t Au over 7.0 meters with 11.32 g/t Au over 1.0 meter. This infill hole, located along the hanging wall margin of the main mineralized corridor (Figure 2) was designed prove up continuity of mineralization in an area with less previous drilling and led to re-classify inferred material into the measured and indicated category for the next resource update.
  • MA-18- 304 intersected 9.53 g/t Au over 5.0 meters including 23.30 g/t Au over 2.0 meters and 5.65 g/t Au over 10.0 meters including 12.71 g/t Au over 4.0 meters. This infill hole tested the area between the mineralized corridor and the footwall fault, effectively increasing the width of the mineralized corridor and adding mineralization to the Marathon pit shell.
  • MA-18-306 intersected 5.67 g/t Au over 7.0 meters including 12.26 g/t Au over 3.0 meters and 3.82 g/t Au over 12.0 meters including 9.90 g/t Au over 4.0 meters.
  • MA-18-307 intersected 5.14 g/t Au over 7.0 meters including 15.54 g/t Au over 2 meters.

Program Update

  • Step-out drilling with 2 drill rigs located towards the SW end of the Marathon Deposit are focused on discovering new mineralization in this area of limited previous drilling and adding more ounces of gold to the Marathon Deposit.
  • Infill drilling with 1 drill rig in the SE area of the Victory Deposit area is aimed at re-classifying inferred material into the measured and indicated category for the next resource update. The widely spaced exploration holes to the southwest of Victory are complete and awaiting assay results.

TORONTO, Sept. 19, 2018 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce continued drilling success with the intersection of new wide and continuous intervals of gold mineralization at open-pit depths in both the footwall and hanging wall margins of the main mineralized corridor of the Marathon Deposit (Figure 1 & 2). Drill holes MA-18-305 and MA-18-308 were both highly successful in penetrating wide intervals of high grade gold within en-echelon stacked QTP veining including 1.41 g/t Au over 105.0 meters with 4.59 g/t Au over 6.0 meters, 7.65 g/t Au over 4.0 meters, 4.90 g/t Au over 2.0 meters and 3.51 g/t Au over 2.0 meters in MA-18-305, and 2.67 g/t Au over 42.0 meters including 12.84 g/t Au over 4.0 meters, 7.23 g/t Au over 2.0 meters and 7.22 g/t Au over 2.0 meters in MA-18-308. These infill holes, as well as the other new drill holes, are to decrease the open pit strip ratio and move inferred material into the measured and indicated resource categories.

“These great gold intercepts are expected to add significantly to the upgrading of the next Marathon resource update.” said Phillip Walford, President and CEO of Marathon Gold. “The current program of infill drilling certainly appears to be achieving our primary objectives of adding new ounces of gold to the global resource, moving inferred material into measured and indicated resource category, and decreasing open-pit strip ratios as we move towards a Pre-Feasibility Study.”

TABLE 1: Significant assay intervals, Marathon Deposit, Valentine Lake Gold Camp.

DDHSectionFromToCore
Length (m)
True
Thickness
(m)
Gold
g/t
Gold g/t
(cut)*
MA-18-3041726024273.02.92.75
54573.02.94.36
  1111165.04.89.53
including 1111132.01.923.30
3473503.02.92.16
4104188.07.62.23
including4154183.02.95.20
including4294323.02.93.62
 46247210.09.55.65
including4624664.03.812.71
5145173.02.93.11
MA-18-3051734087903.02.94.34
1111143.02.914.97
2262304.03.82.16
 267372105.099.81.41
including2672681.01.05.21
including3023031.01.06.52
including3193256.05.74.59
including3283302.01.93.51
including3523542.01.94.90
including3683724.03.87.65
MA-18-306173201291323.02.95.24
  3163237.06.75.67
including 3163193.02.912.26
3553583.02.93.19
  54155312.011.43.82
including 5435474.03.89.90
MA-18-3071728055583.02.71.22
1131174.03.60.94
  3613687.06.35.14
including 3663682.01.815.44
4074103.02.72.25
4404444.03.62.15
MA-18-3081724064684.03.80.97
  8711124.022.81.32
including 92953.02.94.11
  14718942.039.92.67
including 1471492.01.97.22
including 1571592.01.97.23
including 1711754.02.912.84
including 1791801.01.04.58
including 1881891.01.07.62
1972003.02.92.44
3763793.02.91.83
  4004077.06.72.93
including 4034041.01.011.32
  4274325.04.811.939.85
including 4304322.01.928.3423.12

*Cut to 45 g/t Au.

Figure 1: Schematic cross section 17340 showing MA-18-305, Marathon Deposit
http://www.globenewswire.com/NewsRoom/AttachmentNg/19b53ba4-99ac-468b-9502-7f9232fd8004

Figure 2: Location of drill hole collars MA-18-304 to MA-18-308, Marathon Deposit
http://www.globenewswire.com/NewsRoom/AttachmentNg/f5916256-30a4-43ae-8c38-dd3657f74905

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

Quality Assurance-Quality Control (“QA/QC”)

Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, Newfoundland. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.10 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (90-95% of core length).

About Marathon

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com

For more information, please contact:

Christopher HaldanePhillip Walford
Investor Relations ManagerPresident and Chief Executive Officer
Tel: 1-416-987-0714Tel:  1-416-987-0711
e-mail: chaldane@marathon-gold.come-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

 

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Infill Drilling at Marathon Deposit confirms thick continuous mineralization, 1.54 g/t Au over 149.0 meters, Valentine Lake Gold Camp, Newfoundland

Highlights:

Drilling

  • MA-18-303 intersected 1.54 g/t Au over 149.0 meters including 6.60 g/t Au over 5.0 meters, 6.35 g/t Au over 6.0 meters and 4.86 g/t Au over 6.0 meters as well as 1.47 g/t Au over 10 meters including 8.08 g/t Au over 1 meter and 6.54 g/t Au over 3.0 meters. The hole was an infill hole planned to fill in a 100 m vertical gap between existing drill holes on section and it confirmed continuous mineralization in the gap.
  • Drill hole MA-18-303, located towards the NE end of the Marathon Deposit (Figure 1), was designed to intersect down through and normal to the en-echelon stacked QTP-Au veining of the main mineralized corridor; proving up continuity of mineralization as we continue to push northeast in this area of the Marathon Deposit where there has been less previous drilling.
  • MA-18- 302 was an infill hole testing the area between the mineralized corridor and the footwall fault. It intersected 1.86 g/t Au over 10.0 meters including 3.10 g/t Au over 3.0 meters.
  •  MA-18-300 successfully intersected 2.64 g/t Au over 10.0 meters including 4.87 g/t Au over 5.0 meters as well as 21.10 g/t Au over 4.0 meters in the little explored area between the mineralized corridor and the footwall fault.
  • MA-18-298 was also a hole in the footwall area and intersected 1.98 g/t Au over 12.0 meters including 6.87 g/t Au over 3 m.

Program Update

  • Two drills continue at the Marathon Deposit; with current drilling focused on both infill and step-out drilling in the southwestern end of the Marathon Deposit.  The infill drilling is designed to re-classify inferred material into the measured and indicated category for the next resource update. Infill drilling is also focused on drilling material in the hanging-wall and footwall of the main deposit to decrease the open pit strip ratio. Step-out drilling is designed to continue adding more inferred ounces of gold to the Marathon Deposit.
  • One drill has begun drilling in the Victory SW area where multiple en-echelon stacked QTP veining with visible gold has been found during recent trenching in the area located 1 km SW along strike from the Victory Deposit and 4 km NE of the Marathon Deposit. The new QTP-Au veining has been exposed in a number of trenches over a 1500-meter strike length. Trenching has returned 2.71 g/t Au over 9.0 meters.

TORONTO, Sept. 06, 2018 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce the intersection of a very wide, continuous interval of gold mineralization at open-pit depths within the NE end of the main mineralized corridor of the Marathon Deposit (Figure 1). Drill hole MA-18-303 was very successful in intersecting high grade gold intervals within en-echelon stacked QTP veining including 1.54 g/t Au over 149.0 meters with 6.60 g/t Au over 5.0 meters, 6.35 g/t Au over 6.0 meters and 4.86 g/t Au over 6.0 meters as well as 1.47 g/t Au over 10 meters (including 8.08 g/t Au over 1 meter) and 6.54 g/t Au over 3.0 meters. This drill hole was part of the current ongoing infill drilling program at the Marathon Deposit designed to upgrade Inferred to the Measured and resource category.

“The intersection of such a wide thick interval of mineralization with good gold grades in the pit shell is very encouraging in upgrading the Marathon resource.” said Phillip Walford, President and CEO of Marathon Gold. “The infill program is going very well to upgrade the resources in advance of the Pre-Feasibility Study. We are also drilling to reduce the strip ratios of the current resource pits and seeking new pit resources at Victory South West to build on the economic model from the very positive PEA released May 17, 2018.”

TABLE 1: Significant assay intervals, Marathon Deposit, Valentine Lake Gold Camp.

DDHSectionFromToCore Length
(m)
True Thickness
(m)
Gold g/tGold g/t
(cut)*
MA-18-30317350394232.94.18
555832.90.86
626532.91.54
687354.82.23
 7989109.51.47
including 888910.958.08
100249149141.61.54
including10911121.94.43
including12913454.86.60
including14414843.84.27
including18519165.76.35
including20821021.94.38
including22923565.74.86
29730254.83.89
30731032.91.78
36436732.91.68
38638932.93.72
39840132.96.54
40841132.91.86
42743032.91.53
44644932.91.77
MA-18-30217240576032.93.04
30230532.93.60
35836132.92.46
48248754.83.33
49649932.95.75
 594604109.51.86
including 60160432.93.10
MA-18-30117370485243.80.77
11011332.90.86
21121432.91.11
30330632.92.49
MA-18-30017220111543.61.45
 4353109.02.64
including 475254.54.87
586132.71.39
13013332.72.62
37337632.71.98
39840243.621.1011.61
45846132.72.40
MA-18-29917340848732.91.43
48548832.94.68
MA-18-29817200273032.72.57
43551210.81.98
including475032.76.87
51251532.73.11
52953343.65.06
62162432.72.64
63163432.71.36

*Cut to 45 g/t Au.

Figure 2: Location of drill hole collars MA-18-298 to MA-18-303, Marathon Deposit.
http://www.globenewswire.com/NewsRoom/AttachmentNg/5b85daa8-f68b-4179-a23d-f8bc96a8842e

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

Quality Assurance-Quality Control (“QA/QC”)

Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, Newfoundland. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.10 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (90-95% of core length).

About Marathon

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com

For more information, please contact:

Christopher Haldane
Investor Relations Manager
Tel: 1-416-987-0714
e-mail: chaldane@marathon-gold.com
Phillip Walford
President and Chief Executive Officer
Tel:  1-416-987-0711
e-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

 

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Marathon Announces Drilling Starting at New 1500-meter Gold Zone SW extension of the Victory Gold Trend, Valentine Lake Gold Camp, Newfoundland

Highlights:

Gold in Trench and Prospecting Samples:

  • Gold in QTP-veining exposed in new trenching along a 1500-meter strike SW of the Victory Deposit gives an overall >2200-meter strike length for the Victory Gold Trend (Figure 1).
  • Grab samples from newly exposed outcrop and trenches returned 53.2 g/t Au, 29.95 g/t Au, 23.02 g/t Au, 17.34 g/t Au, 8.59 g/t Au, 8.09 g/t Au, 4.79 g/t Au, 4.65 g/t Au, 4.36 g/t Au, 3.85 g/t Au and multiple additional samples running 1-2 g/t Au.
  • Channel sample in trench 250S returned 2.71 g/t Au over 9 meters.
  • Ongoing trenching over a 1500-meter strike length, proximal to the Valentine Lake Thrust Fault, has exposed multiple zones of en-echelon stacked, gentle SW dipping QTP-Au veining identical to the mineralizing system found elsewhere throughout the Valentine Gold Camp, including the Marathon, Leprechaun, Victory and Sprite Deposits.

Program Update:

  • Two drills continue drilling around the clock at the Marathon Deposit; with current infill drilling targeting high-grade gold zones with the objective of re-classifying inferred material into the measured and indicated category for the next resource update. Infill drilling is also focused on drilling material in the hanging-wall and footwall of the main deposit to decrease the open pit strip ratio. Step-out drilling SW of the Marathon Deposit is focused on developing additional gold resources and expanding the Marathon Deposit open pit.
  • A third drill has commenced drilling on the new SW Victory showing, with first drill holes designed to test the multiple zones of QTP-Au veining exposed in the trench 6050 / 250S area (Figure 1).
  • Prospecting and trenching are continuing in the new SW Victory Gold Trend area, with the focus on the area towards the northwest of the Valentine Lake Thrust Fault.
  • The HQ-core drilling program, for the advanced metallurgical heap leach test program, has been completed for the Marathon and Leprechaun Deposits and core samples have been shipped to SGS in Lakefield, Ontario.

TORONTO, Aug. 28, 2018 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is delighted to announce the discovery of multiple stacked, en-echelon QTP-Au veining in newly exposed trench outcrop along a 1500-meter strike length to the SW of the Victory Deposit (Figure 1). Visible gold has been identified in a number of the QTP veins within trenches and grab samples (Figure 2). The 350-meter long 250S trench (Figure 1) contains numerous shallow SW dipping closely stacked QTP veins with initial channel sampling returning 2.71 g/t Au over 9 meters. Grab samples returned up to 53.2 g/t Au, 29.95 g/t Au, 23.02 g/t Au, 17.34 g/t Au, 8.59 g/t Au, and 8.09 g/t Au with numerous other samples retuning between 1g/t and 5 g/t Au. This extensive new exposure of gold-bearing QTP veining is identical in appearance to the gold mineralization, alteration, and dominant vein orientation that characterizes the four currently known gold deposits of the Valentine Gold Camp.

“Recent prospecting and trenching led to the discovery of this new 1500-meter long gold trend to the southwest of the Victory Deposit. The exploration crew has done a great job in bringing this area to the drilling stage. It is very exciting for Marathon Gold in providing additional open pit resource potential,” said Phillip Walford, President and CEO of Marathon Gold. “We look forward to the weeks ahead as we commence drilling this new gold zone. This area gives us a new target to drill as we wait for winter conditions to continue resource drilling at the Sprite bog zone. The new area feeds into Marathon’s goals to discover new gold deposits and increase the measured and indicated gold resources at known deposits as we advance towards a Pre-Feasibility Study.”

Figure 1: Map of the > 2.2 km long Victory Gold Trend showing the newly discovered 1.5 km SW extension of the gold zone as well as new trench locations, channel and grab sample gold grades (g/t Au) and the Victory Deposit May 2018 resource pit shell which is currently open in all directions, Valentine Gold Camp.
http://www.globenewswire.com/NewsRoom/AttachmentNg/7892e66d-6c4c-4093-a6a0-154187c84dbe

Figure 2: Visible gold exposed in quartz-tourmaline-pyrite veining from the trench 250S, SW Victory gold trend area, Valentine Gold Camp.
http://www.globenewswire.com/NewsRoom/AttachmentNg/7e6745a9-50dc-4df6-8e79-c72045e65102

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

Quality Assurance-Quality Control (“QA/QC”)

Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Samples are analyzed for Au by fire assay (30g) with AA finish at Eastern Analytical in Springdale, Newfoundland.

About Marathon

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:

Christopher Haldane
Investor Relations Manager
Tel: 1-416-987-0714
e-mail: chaldane@marathon-gold.com
Phillip Walford
President and Chief Executive Officer
Tel:  1-416-987-0711
e-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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Marathon Announces Appointment of Chief Operating Officer and awards Metallurgical Contract to SGS

Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce the appointment of Robbert Borst as Chief Operating Officer of the Company effective August 1, 2018. Mr. Borst successfully managed the company’s initial Preliminary Economic Assessment (PEA) for the Valentine Lake Gold Camp which was released on May 17, 2018.

Mr. Borst brings over 30 years of experience in operations, engineering, technical consulting services and project management. Mr. Borst has worked for large mining companies as well as junior mining companies worldwide which has given him a skill set and experience which will be beneficial to Marathon at this pivotal time in moving the Valentine Lake Gold Camp towards production.

Marathon has contracted SGS Canada Inc. (“SGS”) in Lakefield, Ontario, to conduct a comprehensive metallurgical and environmental evaluation of the Valentine Lake Gold Project. The program will include both the mill and heap leach processing options with the objective to better define the recovery methods in preparation for the Pre-Feasibility Study.

“We are delighted to have a mining professional of Mr. Borst’s caliber join the senior management team on a more permanent basis. Mr. Borst has proven to be a valuable member of the project team since joining the company in October 2017,” said Phillip Walford, President and CEO of Marathon Gold. The metallurgical test work at SGS will be overseen by metallurgical consultant Mr. John Goode and managed by Mr. Borst as part of the overall PFS, which is his responsibility.  The metallurgical work is an important part of the PFS. Increased recoveries in the heap leach and milling processes will improve the economics of the project.

Marathon is currently drilling HQ core specifically for the heap leach program.  Approximately 2000kg of samples will be used for Bond crusher work index tests, bottle roll leach tests and column leach tests.  The result will be a detailed evaluation and potentially improved recoveries for the heap leach option. An additional 2000kg of stored NQ half-core will be made available for comminution tests and gravity, flotation and cyanidation test work. Bulk flotation work will generate concentrate for further testing. This will provide a sound understanding of the potential performance of the various conventional gold recovery unit operations. Environmental tests will also be included in the program. The results will be used in the Pre-Feasibility Study scheduled to be completed in 2019.

About Marathon Gold Corporation

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:

Christopher Haldane
Investor Relations Manager
Tel: 1-416-987-0714
E-mail: chaldane@marathon-gold.com

Phillip Walford
President and Chief Executive Officer
Tel: 1-416-987-0711
E-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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Marathon Deposit Infill Drilling Intercepts High-Grade Zone: 7.97 g/t Au over 59.0 meters including 57.74 g/t Au over 5.0 meters, Valentine Lake Gold Camp, Newfoundland

Highlights:

Drilling

  • 7.97 g/t Au over 59.0 meters including 57.74 g/t Au over 5.0 meters and 48.12 g/t Au over 2.0 meters in MA-18-295.
  • 5.00 g/t Au over 5.0 meters including 10.12 g/t Au over 2.0 meters in MA-18-295.
  • Drill hole MA-18-295 was designed to intersect along the margin of the main Marathon Deposit mineralized corridor in an area of inferred mineralization proving up continuity of high-grade, en-echelon stacked QTP-VG veining along the foot-wall of the deposit (Figure1). The high-grade intercepts filled in an area of poorly defined mineralization.
  • 4.97g/t Au over 3 meters and 3.60 g/t Au over 3 meters in hole MA-18-297.
  • Drill hole MA-18-297 was also planned to cover an area of inferred mineralization between main corridor of mineralization and the foot wall. The hole successfully intercepted some extensions of the corridor mineralization.

Program Update

  • Two drills continue drilling around the clock at the Marathon Deposit; with current infill drilling targeting high-grade gold zones with the objective of re-classifying inferred material into the measured and indicated category for the next resource update. Infill drilling is also focused on drilling material in the hanging-wall and footwall of the main deposit to decrease the open pit strip ratio.
  • Prospecting and trenching is being conducted southwest of the Victory Deposit.
  • The metallurgical program for the heap leach option and for the milling option are being finalized.

TORONTO, July 26, 2018 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”) (TSX:MOZ) is very pleased to announce the intersection of high-grade gold mineralization at depth within the main corridor of the Marathon Deposit (Figure 2). MA-18-295 was very successful in intersecting a wide interval of high grade gold in en-echelon stacked QTP veining that returned 7.97 g/t Au over 59.0 meters including 57.74 g/t Au over 5.0 meters, 48.12 g/t Au over 2.0 meters, and 27.81 g/t Au over 1.0 meter. This drill hole was part of the current ongoing infill drilling program at the Marathon Deposit designed to upgrade inferred material into the measured and indicated category.

“This intercept of high-grade gold is very exciting as we continue with infill drilling at the Marathon Deposit in preparation for the next resource update. The high-grade intercepts are consistently occurring in the main corridor of mineralization and some of these veins also extend out into the foot wall and hanging wall,” said Phillip Walford, President and CEO of Marathon Gold. “After the release of our very positive PEA on May 17, 2018, Marathon’s current goal is to discover new gold deposits and increase the measured and indicated gold resources at the known deposits in advance of a Pre-Feasibility Study.”

Figure 1: Location of drill hole MA-18-295 on Section 17110 (view NE), Marathon Deposit, Valentine Gold Camp.
http://www.globenewswire.com/NewsRoom/AttachmentNg/71cbeb60-b7e7-47ba-997a-67d1f34e467c

TABLE 1: Significant assay intervals, Marathon Deposit, Valentine Lake Gold Camp.

DDHSectionFromToCore Length (m)True Thickness (m)Gold g/tGold g/t (cut)*
MA-18-2951711027527832.92.23
33133654.85.00
including33133321.910.12
37037443.82.64
40040332.94.42
 4374965956.17.974.13
including43743921.948.1223.99
including47747811.027.81
including48949454.857.7422.11
MA-18-29617150404332.91.08
525532.90.76
17617932.91.19
MA-18-2971717031131432.91.42
46947232.93.60
51151432.94.97

Figure 2: Location of drill hole collars MA-18-295 to MA-18-297, Marathon Deposit.
http://www.globenewswire.com/NewsRoom/AttachmentNg/2fe52455-d1fd-4f83-9017-bb1dd3982a9b

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

Quality Assurance-Quality Control (“QA/QC”)

Sherry Dunsworth, M.Sc., P. Geo., Senior VP of Exploration, Marathon’s Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon. Thorough QA/QC protocols are followed including the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, Newfoundland. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.10 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (85-95% of core length).

About Marathon

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:

Christopher HaldanePhillip Walford
Investor Relations ManagerPresident and Chief Executive Officer
Tel: 1-416-987-0714Tel:  1-416-987-0711
e-mail: chaldane@marathon-gold.come-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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Marathon Announces Closing of C$8 Million Bought Deal Financing

Marathon Gold Corporation (“Marathon” or the “Company”) (TSX:MOZ) is pleased to announce that it has completed its previously announced bought deal prospectus offering of 2,900,000 flow-through common shares in the capital of the Company (“FT Shares”) at a price of $1.05 per FT Share and 5,900,000 common shares in the capital of the Company (“Common Shares”) at a price of $0.85 per Common Share for gross proceeds to the Company of $8,060,000 (the “Offering”). The Offering was conducted by a syndicate of underwriters co-led by Haywood Securities Inc. and RBC Capital Markets and including Canaccord Genuity Corp., Laurentian Bank Securities Inc. and Raymond James Ltd.

The Company intends to use the net proceeds of the Offering to continue exploration and development of its Valentine Lake Gold Property in Newfoundland and for general and corporate purposes. The proceeds received by the Company from the sale of FT Shares will be used to incur Canadian exploration expenditures that qualify as ‘flow-through mining expenditures’ (as such terms are defined in the Income Tax Act (Canada)) on its Valentine Lake Gold Property (the “Qualifying Expenditures”). The Qualifying Expenditures will be renounced to the purchasers of the FT Shares with an effective date no later than December 31, 2018, in the amount equal to the aggregate purchase price for the FT Shares paid by such purchasers.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

About Marathon Gold Corporation

Marathon Gold Corp. is a high-quality growth-oriented gold development company with a long-term strategy of moving the 100% owned Valentine Lake Gold Camp through to production in central Newfoundland. Marathon recently completed a positive PEA that shows an average annual production of 188,500 ounces per year over the first 10 years, payback of 2.8 years, NPV (5%) of $367 million (USD) and an IRR of 25.3%, all after-tax. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,137,100 oz. of gold at 1.99 g/t and inferred resources totaling 1,104,800 oz. of gold at 1.99 g/t. Most of the resources occur at the Marathon and Leprechaun Deposits. All the deposits are open to expansion. Marathon’s 240 sq. km sized Valentine Lake property has multiple exploration targets to be explored in 2018.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:

Christopher HaldanePhillip Walford
Investor Relations ManagerPresident and Chief Executive Officer
Tel: 1-416-987-0714Tel: 1-416-987-0711
E-mail: chaldane@marathon-gold.comE-mail: pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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