Marathon's Enhanced Resource: Metal, Grade and Tonnes Are All Up
Thu Aug 20, 12:00 PM
ca.news.finance.yahoo.com
TORONTO, Aug. 20 /CNW/ - Marathon PGM Corporation ("Marathon") is pleased to announce an updated in-pit resource estimate, which is part of the on-going optimization of the definitive feasibility study ("DFS") of the Marathon Project. Marathon elected to optimize the DFS in light of improved metallurgical recoveries, higher metal prices and capital reductions. The updated in-pit resource has an increase in measured, indicated ("M&I") and inferred resources and an increase in total resources, containing 3.63 million ounces of PGM and gold and 625 million pounds of copper.
Highlights:
- Marathon's updated in-pit M&I resource contains 2.58 m ounces of Pd
(up 10.3% over the 2008 resource), 769 k oz of Pt (up 5.4%), 280 k
ounces of Au (up 10.3%), 625 m lbs of Cu (up 8.3%) and 5.5 m oz of Ag
(up 8.3%) with only a 4.7% increase in tonnes
- announced improved metallurgical recoveries - Pd up 3%, Pt up 8% and
Au up 7%
- 95.1% of in-pit resource is greater than $13.50/tonne NSR cut-off
- both the indicated and inferred tonnages were greatly reduced due to
higher resolution of the new resource model
Phillip Walford, President and CEO of Marathon commented "We have successfully improved both the resource classifications and the metal content. This expanded resource is the base for a new mine plan and new resources currently underway. It is important to note that the metal prices being used are lower than the present prices with the exception of palladium."
Updated Total In-Pit Resource above $6.63/tonne NSR Cut-Off(1,2)
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Optimized Mineral Resource (2009)
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Category Million Pd Pt Au Cu Ag Rh
tonnes g/t g/t g/t % g/t g/t
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Measured 92.0 0.82 0.24 0.09 0.29 1.68 0.006
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Indicated 9.8 0.54 0.20 0.08 0.22 1.71 0.006
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Measured
+ Indicated 101.9 0.79 0.24 0.08 0.28 1.68 0.006
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Inferred 0.6 0.41 0.17 0.07 0.22 1.43 0.004
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Contained Metal
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Category Pd oz Pt oz Au oz Cu lb Ag oz Rh oz
(000) (000) (000) million (000) (000)
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Measured 2,414 706 256 578 4,961 17
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Indicated 170 62 24 47 542 2
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Measured
+ Indicated 2,583 769 280 625 5,503 18
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Inferred 8 3 1 3 27 0
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Resource Model
In order to better represent the geology of the Marathon deposit, a new block model was constructed which used an unfolding technique on the sample search ellipsoid. This approach allows a search ellipsoid to better reflect the actual trend of the mineralization. In addition, smaller block sizes were used in the mineralized zones to further help delineate the overall potential resource. A typical example of the results using the 2008 block model is shown here for palladium (http://www.marathonpgm.com/images/5450-2008.jpg).
The 2009 block model provided a much higher resolution. Looking at the same section shows the difference in the two models (http://www.marathonpgm.com/images/5450-2009.jpg).
Other changes between the previous block model and the new one includes slightly improved metal prices and improved metallurgical recoveries. Waste was also modeled in the new block model so grades of waste material could also be predicted and used during mine planning activities.
Mineral Resource Parameters
Micon International ("Micon") estimated this new in-pit resource using an average external NSR cut-off of C$13.50 per tonne (based on processing costs of $6.05/t, G&A $0.58/t, and mining costs of $6.87/ore tonne). Concentrate shipping, smelter treatment and refining charges of $3.46/t (based on per tonne milled) are included in the NSR value. Metal prices used in Micon's estimate were Cu $US 2.50/lb, Au $US700/oz, Pt $US1,100/oz, Pd $US300/oz and Ag $US12/oz. The US/CDN exchange rate was $0.87. The metal prices and exchange rate utilized were based on approximate 5.5 year trailing average metal prices. Concentrate recoveries were Cu 91%, Au 80%, Pt 71%, Pd 80% and Ag 71%, based on recent metallurgical results. An additional low grade resource was defined between an NSR cut off of C$6.63/tonne and $13.50 /tonne. This low grade NSR cut-off of $C6.63/tonne was derived from the internal cut-off grade that consists of $6.05/tonne processing costs and $0.58/tonne G&A costs.
The mineral resources in this press release 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 December 11, 2005.
Appendix:
In-Pit Resource above $13.50/tonne NSR Cut-Off(1,2)
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Optimized Mineral Resource (2009)
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Category Million Pd Pt Au Cu Ag Rh
tonnes g/t g/t g/t % g/t g/t
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Measured 87.8 0.85 0.25 0.09 0.29 1.70 0.006
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Indicated 9.1 0.56 0.20 0.08 0.23 1.74 0.006
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Measured +
Indicated 96.9 0.82 0.24 0.09 0.29 1.70 0.006
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Inferred 0.5 0.44 0.18 0.08 0.23 1.50 0.004
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Contained Metal
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Category Pd oz Pt oz Au oz Cu lb Ag oz Rh oz
(000) (000) (000) million (000) (000)
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Measured 2,382 694 251 568 4,797 16
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Indicated 164 60 23 45 511 2
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Measured +
Indicated 2,545 753 274 613 5,309 18
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Inferred 7 3 1 3 24 0
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Low Grade In-Pit Resource between $6.63 & $13.50/tonne NSR Cut-Off (1,2)
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Optimized Mineral Resource (2009)
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Category Million Pd Pt Au Cu Ag Rh
tonnes g/t g/t g/t % g/t g/t
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Measured 4.2 0.24 0.09 0.04 0.11 1.21 0.002
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Indicated 0.7 0.26 0.10 0.04 0.10 1.35 0.002
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Measured +
Indicated 4.9 0.24 0.01 0.04 0.11 1.23 0.002
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Inferred 0.1 0.26 0.01 0.04 0.12 1.01 0.002
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Contained Metal
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Category Pd oz Pt oz Au oz Cu lb Ag oz Rh oz
(000) (000) (000) million (000) (000)
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Measured 32 13 5 10 163 0
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Indicated 6 2 1 2 31 0
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Measured +
Indicated 38 15 6 12 195 0
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Inferred 1 0 0 0 3 0
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(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, taxation, sociopolitical, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred resources in this
estimation are conceptual in nature and there has been insufficient
exploration to define these inferred resources as an indicated or
measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an indicated or measured mineral
resource category.
Qualified Persons
The revised in-pit resource was prepared by Sam Shoemaker, of Micon International under the supervision of Richard Gowans P.Eng., the independent qualified person (QP). Mr. Gowans is President and Principal Metallurgist with Micon International Limited ("Micon"). Mr. Phillip Walford, P.Geo., President and CEO for Marathon, is the Company's designated QP for the purposes of the DFS. Mr. Gowans and Mr. Walford have reviewed and approved the contents of this press release.
About Marathon PGM Corporation:
Marathon is currently optimizing an earlier definitive feasibility study on the Marathon PGM-Cu deposit, which was completed in December of 2008. Marathon also has development and exploration stage properties in southeastern Manitoba and western Newfoundland, respectively. Marathon's management plans to build on its experience through the advancement of its properties and by examining other strategic opportunities.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon, 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 Management's Discussion and Analysis for the year ended December 31, 2008.
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 or results otherwise.
On Behalf of Marathon PGM:
"Phillip C. Walford"
Phillip C. Walford, P.Geo.
President, Chief Executive Officer
Tel: +1.416.987.0711
gen@marathonpgm.com
Contacts
David Leng
P.Geo.
Tel: (416) 849-3432
Fax: (416) 861-1925
dleng@marathonpgm.com |
