Marathon options Gossan’s Bird River (April 30, 2007)

Marathon PGM (MAR-T, MRPGF-O) has struck an option agreement to acquire up to a 70% interest in Gossan Resources’ (GSS-V, GSSRF-O) Bird River platinum group metals (PGM) project in southeastern Manitoba’s Bird River sill complex.

Gossan’s Bird River property is situated 150 km northeast of Winnipeg, and covers 73 sq. km over a 21-km strike length of the sill complex. Mustang Minerals’ (mum-v, msmgf-o) Maskwa low-grade nickel deposit and the historic Dumbarton mine are situated 6 km southeast.

Toronto-based Marathon can earn a half interest in the Bird River property by spending $3 million on exploration and making cash payments of $500,000 to Winnipeg-based Gossan by April 2011. Marathon can earn a further 15% by completing a definitive feasibility study and another 5% interest by arranging project financing.

Upon formation of a joint venture, Marathon must pay advance royalties of $100,000 annually until commercial production is achieved — payments that are recoverable by Marathon once any mine is in production.

Marathon plans to spend $500,000 before May 2008, plus an initial cash payment of $50,000. Upcoming summer work will include prospecting and surface geochemical sampling, which will be followed up with drilling.

Marathon says that platinum and palladium mineralization has recently been identified in several environments on the property, including nickel and copper mineralization in ultramafic rocks, reef-style mineralization near and in the chromite layers, and mineralization in the surrounding volcanic rocks.

The company notes that much of the earlier sampling and drilling on the property did not test for PGMs.

Marathon adds that seven regional airborne electromagnetic anomalies await drilling, and a new zone of PGM-nickel and copper mineralization has been outlined on the eastern end of the property on the Page Block by widely spaced drilling over a strike length of 300 metres.

Geologically, the 1-km-long Page zone is being likened to Mustang’s Maskwa deposit, having returned intersections such as 13.5 metres grading 0.73 gram palladium per tonne, 0.27 gram platinum per tonne, 1.08% nickel and 0.5% copper in hole BR-05-02.

Marathon PGM is best known for its advanced, wholly owned Marathon PGM-copper project located 10 km north of Marathon, Ont., where an intensive, 35,000-metre drilling campaign and definitive feasibility study are ongoing.

One recent hole, M-07-306, returned an impressive 20 metres grading 23.4 grams PGMs plus gold, and 0.28% copper, including 8 metres of 55.4 grams PGMs plus gold, and 0.59% copper.

The project has a measured resource of 39.2 million tonnes containing 1.6 million oz. of PGMs plus gold, and 285 million lbs. copper, and an indicated resource of 28.9 million tonnes containing 1.1 million oz. of PGMs plus gold, and 178 million lbs. copper.

Marathon PGM’s president and CEO Phillip Walford says the Bird River agreement “reflects the company’s growth strategy of adding highly prospective projects near infrastructure and that have the geological potential to rapidly develop PGM resources.”