Marathon shares spike on Newfoundland gold recoveries
Marathon Gold Corp (TSE:MOZ) stock surged as much 13.2% on Thursday after releasing results from metallurgical test work at its Valentine Gold Camp located in central Newfoundland.
In afternoon trade the small-cap changed hands at $0.77, on the Toronto Stock Exchange before paring some of those gains, affording the company a market worth of $123.4 million. Marathon's shares are up five-fold this year on the back of stellar drilling results at Valentine.
On Thursday, the Toronto-based firm released positive results from its 2016 metallurgical test program, costs of which is being paid in part by the Research and Development Corporation of Newfoundland and Labrador.
Tests yielded high gold recoveries from the Marathon Deposit using a combination of conventional gold pre-concentration and leaching technologies according to the company. The latest results also indicate similar recovery rates as was developed for high-grade zones at its Leprechaun Deposit during the third quarter of 2014.
Taken together, the Leprechaun and Marathon deposits comprise more than 90% of the resources at the Valentine Gold Camp in central Newfoundland:
59.4% of the gold in the Marathon sample was recovered by gravity separation. Flotation of a gold concentrate from the Marathon sample resulted in a gold recovery of 94.7% in a concentrate grading 89.2 g/t. Cyanide leaching of the flotation concentrate using carbon-in-leach (“CIL”) under varying conditions produced extraction of gold from the concentrate ranging from 94.4% to 98.6%.
The combined extraction of gold by flotation followed by cyanide leaching of the concentrate resulted in recoveries that ranged from 89.4% to 93.4% without treatment of the tailings. CIL processing of the tailings increased overall gold extraction to 98.1%.
According to April 2015 estimates the Valentine Gold Camp hosts four near-surface, mainly pit-shell constrained, gold resources totaling 1,060,100 oz. gold at 2.20 g/t (Measured & Indicated) and 200,000 oz. gold at 2.85 g/t (Inferred).