Marmota has identified four priority uranium drill targets next door to Boss Energy
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Special Report: Marmota’s return to uranium is well and truly underway with the identification of new high priority drill targets at its Junction Dam project in South Australia.
Prices of uranium are approaching the US$80/mark while Sprott Asset Management has flagged that uranium is currently in the midst of a bull market.
On the back of the increasingly positive sentiment for the energy metal, Marmota made the decision in October to recommence exploration at Junction Dam, which has an existing resource of 5.4Mlbs of uranium (U3O8) at 557 parts per million (ppm).
Marmota’s (ASX:MEU) goal is grow resources at Junction Dam with previous drilling having already proven that uranium is present at both the Bridget and Yolanda prospects, which have not yet being included in the project’s resources.
Map of the Junction Dam project. Pic: Supplied (MEU).
Along with the Saffron deposit, these prospects have an existing exploration target of between 22Mlbs and 33Mlbs U3O8 at a grade range of 400-700ppm.
This has a similar grade to Boss Energy’s (ASX:BOE) adjacent Honeymoon uranium mine, which hosts one of four permitted plants in Australia and is bookended on both sides of its hosting paleochannel by Junction Dam tenement EL 6530.
To support its return to uranium exploration, MEU also appointed well-known yellowcake expert Mark Couzens to design the first re-start program, including a full technical analysis of the stratigraphy and mineralisation at Junction Dam.
Couzens involvement has now borne fruit with the company’s geological team completing the first stage of a technical review around the Saffron deposit and identifying four new high priority drill targets.
These targets are to the North, East and South of the Saffron resource where the geology is favourable for the deposition of uranium mineralisation and is supported by stratigraphic modelling, EM and gravity images.
Importantly for MEU, three of the four targets are outside the current resource area, providing significant scope for growth of Marmota’s uranium resource at Junction Dam.
The review also identified six main uranium-bearing palaeochannels at Saffron that are all open for further uranium mineralisation.
Four new exploration targets. Pic: Supplied (MEU).
MEU’s new stratigraphic model suggests that uranium mineralisation around the Saffron area is hosted primarily within floodplains adjacent to numerous uranium-bearing Eyre Formation palaeochannels.
There is also noticeable uranium mineralisation higher up in the stratigraphy near steps in the basement suggesting that there could be re-mobilisation of uranium locally along faults.
All six palaeochannels identified are uranium-bearing with EM and gravity images showing that there are large regions within the Yarramba Palaeovalley where further uranium mineralisation could potentially be identified.
MEU expects this new model to enable it to target high-grade uranium mineralisation both within the current resource area and near resource exploration targets, as well as targets including such as the Bridget prospect to the north and the Yolanda prospect to the south.
“I am delighted with the remarkable progress of the stratigraphic review, its obvious success, and the remarkable speed with which this is happening,” chairman Dr Colin Rose said.
“The review has already shown the enormous potential for Junction Dam to develop and grow as one of South Australia’s premium uranium deposits, in the premier uranium jurisdiction of Australia.
“It has already completely changed our understanding of the nature of uranium mineralisation at Junction Dam, its scope and dramatically increased our perception of the potential of Junction Dam.
“And this is just stage 1 (Saffron). The review will next expand to Bridget (to the north) and Yolanda (to the south).”
This article was developed in collaboration with Marmota, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.