The company reported 15 step-out holes over an 850m strike length of the Sprite Corridor extending from the Berry zone northeastward towards the Frozen Ear Pond Road. Highlights included 22m grading 4.91 grams per tonne, including 1m grading 20.1g/t.

"Today's Sprite Corridor results, taken with earlier step-out drilling demonstrate additional gold mineralisation … representing an overall distance of 1.5km," said Marathon Gold president and CEO Matt Manson.

"While additional drilling is required to determine the extent and continuity of this mineralization … the intercepts suggest the potential for a much larger mineralising system in this central portion of the 6km-long Sprite Corridor than previously recognised."

Marathon has three rigs drilling completing an infill programme at Berry and adding additional step-out holes to the northeast. This work is expected to continue until the end of November.

An April prefeasibility study outlined a 12-year mine producing 175,000oz annually in years one to nine, for initial capex of C$272 million, with an after-tax NPV5 of $472 million and IRR of 36%.

Shares in Marathon Gold are trading at C$2.42, valuing the company at $503 million.