Marathon targets significant upgrade

Marathon Resources’ current expanded in-fill drilling program at its Mt Gee....

  Marathon Resources’ current expanded in-fill drilling program at its Mt Gee uranium deposit in South Australia is part of the company’s goal to upgrade a significant portion of the present resource to Inferred status, according to Chairman Peter Williams.Mr Williams said that results from the new campaign are expected by the second quarter of 2008. “In the meantime, data acquisition and pre-feasibility study activities are progressing rapidly," he said. "By June 2008, we aim to have the mining plan and technical, metallurgical and engineering issues identified in preparation for the next phase of mine development.”"With the delivery of a pre-feasibility study in 2008, our key Mt Gee project is on track for production in the early part of the next decade,” he said.Mr Williams said that having added new, strategic and long-term partners in the Talbot Group and CITIC Australia, Marathon continued to consider further strategic alliances that will add value to the company.As part of the funding for its expanded drilling program at Mt Gee, in September 2007 Marathon announced a one for five rights issue at $2.50 per Marathon share, raising a maximum of $27m."I am pleased to say that both the Talbot Group and CITIC Australia took up all their entitlements under the offer, while the directors also took up the majority of their entitlements. Marathon successfully raised $15.5m during a period of subdued market conditions, and is confident of placing the remaining equity," Mr Williams said."The latest capital raising follows the $7.15m raised in a placement to Talbot Group and CITIC Australia in November 2006," he said."The company’s ability to raise funds is crucial for our ongoing development plans. It is a great sign of confidence in Marathon that we continue to do so, despite market nervousness over the US sub-prime fallout, fluctuating spot uranium prices and rising interest rates in Australia."