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Canaccord Genuity has upgraded coverage on Marathon Gold (TSX: MOZ)

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Today’s buy recommendation comes from Canaccord Genuity, which has upgraded coverage on Marathon Gold (TSX:MOZ). Following drill results, analyst Eric Zaunscherb maintained his speculative buy rating, increasing his target from $0.60 to $0.70, a premium of 40% to the $0.50 price on July 6th, the day the report was issued.

Additional Information:

Company: Marathon Gold
Website: http://www.marathon-gold.com
Stock Symbol: TSX: MOZ
Date Published: Jul 12, 2016
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch Media

Today’s buy recommendation comes from Canaccord Genuity, which has upgraded coverage on Marathon Gold. Following drill results, analyst Eric Zaunscherb maintained his speculative buy rating, increasing his target from $0.60 to $0.70, a premium of 40% to the $0.50 price on July 6th, the day the report was issued.

Marathon is advancing its wholly-owned Valentine Gold project in central Newfoundland where summer exploration includes expansion drilling at Marathon and Leprechaun, follow-up drilling at Sprite, and step-out drilling at Victory.

Infill hole MA-15-039 targeted deeper levels and continued to intersect high-grade mineralization toward the lower boundary of the pit shell.

Several shallow drill holes succeeded in intersecting significant gold mineralization within 50-75 metres of surface, along a 140 metre strike length.

The Marathon gold deposit remains open along strike and at depth, with mineralization outlined along a 1.7 kilometre-long corridor.

The Valentine Gold Camp currently hosts four near-surface gold resources totaling 1,060,100 ounces gold at 2.2 grams per tonne in the measured and indicated categories, and 200,000 ounces gold at 2.85 grams per tonne in the inferred category.

Phillip Walford, President and CEO, stated: "The continued success in our drilling at the Marathon Deposit is very encouraging as we work towards increasing open-pit resources at the Valentine Gold Camp. The steady growth of a critical mass of open-pit resources continues to be our primary focus while targeted deeper drilling helps with the economics in lower levels of the pit shell.”

Analyst Eric Zaunscherb stated: “Despite above average grade for a conceptual open pit operation, the market is valuing Marathon at US$31 per global ounce, 20% below the US$39 peer group average. Aside from the price of gold, access to capital markets is Marathon Gold’s primary risk.”

The shares are currently trading at $0.49, well below the $0.70 target price, and with 106 million shares outstanding, the company is capitalized at $51.9 million.

For more information, please visit the company’s website www.marathon-gold.com, contact Christopher Haldane, Investor Relations Manager, at 416-987-0714 or email chaldane@marathon-gold.com.

For more information about Canaccord Genuity or to obtain a copy of their research report, please visit www.canaccord.com for a list of their nearby offices.

I’m Samantha Deutscher for InvestmentPitch Media