In a March 2 research note, Haywood analyst Mick Carew reported that recent drilling at Marathon Gold Corp.'s (MOZ:TSX; MGDPF:OTCMKTS) Valentine gold project "continues to demonstrate the potential for another gold mineralized zone away from the four deposits that comprise the current resource."
Carew explained that the new results are from the first eight holes of Marathon's 2020 exploration program at the Central Newfoundland project. The holes specifically targeted quartz-tourmaline-pyrite-gold veining over a 200 meter (200m) long strike length, where they demonstrated the emergence of a potential new 'Main zone' sequence in mineralization in a new area the company has recently named the Berry zone," he wrote.
The first eight holes were part of an overall 32,000m program of drilling in the 6 kilometer long Sprite corridor, situated between the Marathon and Leprechaun deposits.
Carew provided some highlight assays. Hole VL-20-799 is notable for its width of 55m, he noted, given most of the other widths were between 2m and 6m. This hole intersected 55m of 2.24 grams per ton (2.24 g/t) gold from a downhole depth of 113m, including 3m at 15.17 g/t gold, 3m at 10.96 g/t gold and 1m at 9.25 g/t gold.
Hole VL-20-801 intersected 8m at 3.92 g/t gold from a 146m downhole depth, including 2m at 9.63 g/t gold.
"The recent results are encouraging," commented Carew.
However, more drilling is needed, he indicated, to assess the continuity of the mineralization encountered thus far and determine whether the grade at Sprite is as consistent as that of the Leprechaun and Marathon deposits.
Haywood has a Buy rating and a CA$2.50 per share target price on Marathon Gold, the stock of which is trading now at around CA$1.33 per share.
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Disclosures from Haywood Securities, Marathon Gold Corp., Radar Flash, March 2, 2020
Analyst Certification: I, Mick Carew, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Important Disclosures
Of the companies included in the report the following Important Disclosures apply:
▪The Analyst(s) preparing this report (or a member of the Analysts' households) have a financial interest in Marathon Gold Corp. (MOZ-T).
▪ Haywood Securities, Inc. has reviewed lead projects of Marathon Gold Corp. and a portion of the expenses for this travel have been reimbursed by the issuer.
▪ Haywood Securities, Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Marathon Gold Corp. in the last 12 months.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.
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