Rightfully using words like "delighted" and "excited," Marathon Gold Corp. (TSX:MOZ) said early Thursday morning that the drilling program at its Valentine Lake Gold Camp in central Newfoundland is delivering impressive gold discoveries.
The Toronto-based exploration company is focused on developing the project made up of four near-surface deposits with measured and indicated resources totaling 1.85 million ounces of gold at 1.88 g/t and inferred resources totaling 1.01 million ounces of gold at 1.65 g/t.
Today's results from infill drill hole MA-18-282 in Marathon's eponymous deposit were trumpeted as "one of the thickest and highest-grade gold intervals found to date." The hole returned 18.66 grams per tonne gold over 13.0 metres, including 27.95 g/t gold over 3.0 metres and 70.66 g/t gold over 2.0 metres.
Other drill holes also returned strong gold findings that helped to better define the resource. For instance, hole MA-18-280 intersected 2.56 g/t gold over 19.0 metres, including 7.83 g/t gold over three metres and 5.44 g/t gold over two metres. Hole MA-18-279 cut 1.77 g/t gold over 10.0 metres with 5.24 g/t gold over two metres.
The drilling is particularly compelling because the area has only been sparsely drilled - and shallowly at that - with holes widely spaced apart. New targets are being identified thanks holes repeatedly turning up mineralization.
Marathon has three drill rigs running on the project as part of a 15,000-metre winter drill program. Another drill program is expected after spring breakup.
Step-out drill hole data supported the contention that mineralization continues outside the known parameters. The company anticipates the new drill results will add significant gold ounces to the next resource update. A preliminary economic assessment is being written and is on schedule for release by the middle of May.
Like many junior explorers, Marathon's stock has been lumped up in 2018, skidding from a 52-week high early in January at $1.28 to as low as 88 cents last week.
Shares look to be on the mend, closing Wednesday up by 5.5% at 96 cents.
Traders will likely be watching to see how the stock responds Thursday to the news to see if the upward movement can continue.
