The new palaeochannel is the third uranium target that Marmota is keen to start exploring. Pic via Getty Images.
Mining
Special Report: Marmota’s four-part review into the uranium potential of its highly prospective Junction Dam project in South Australia has resulted in the identification of an extensive and intriguing palaeochannel at the Yolanda prospect.
Junction Dam already boasts a 5.4Mlb uranium oxide resource at an average grade of 557ppm U3O8 within the Saffron deposit – similar in grade to Boss Energy’s (ASX:BOE) adjacent Honeymoon mine that is currently undergoing commissioning.
Providing an early sense of just how prospective Junction Dam might be, Marmota (ASX:MEU) has also pencilled in an exploration target of 22-33Mlb grading 400-700ppm U3O8.
This potential led the company to appoint well-known yellowcake expert Mark Couzens late last year to lead a review and drill program design for the project.
Already, the review has highlighted two Namba Formation paleochannels with uranium mineralisation at the base of the channel, similar to Heathgate Resources’ Beverly uranium mine, as well as two Eyre Formation paleochannels.
One of the Namba channels has what appears to be a huge 20m high stacked uranium roll-front, comparable to what is seen at the Four Mile uranium deposits.
Meanwhile, one of the Eyre Formation channels extends from the Saffron deposit to the south, while the other enters from the southwest – similar to those seen in MEU’s Saffron uranium deposit.
Stage 3 of the review program, which was carried out over the underexplored Yolanda prospect, has now uncovered an extensive uranium-bearing Eyre Formation palaeochannel that stretches over 8km long and is more than 1km wide.
Historical drilling at the project has demonstrated that high-grade uranium mineralisation exists in floodplains on the sides of the palaeochannel, as well as in the weathered sandstone basement near the palaeochannel.
This is highlighted by hole YORM028 returning a peak grade of 1,258ppm eU3O8 and 3m @ 646ppm eU3O8 from a depth of 124.2m on the edge of the western branch of the palaeochannel.
Uranium mineralisation was also identified in the weathered basement and basement in numerous drillholes, especially in close proximity to the palaeochannel. This mineralisation seems to be unique to Yolanda since it wasn’t seen at Saffron or Bridget.
However, the small number of holes in the area was central to why most of this work missed the key palaeochannel, as well as the corresponding floodplains, meaning the full extent of uranium mineralisation remains untested to date.
None of the Yolanda prospect area is included in the current Junction Dam resources, providing MEU with plenty of upside potential.
“Of the three review areas so far, Yolanda has the smallest number of historical holes, and is therefore also the most underexplored of the three review areas to date,” MEU chairman Colin Rose said.
“We also now know that at Yolanda, most of these historical holes missed the interesting targets – i.e. most missed the palaeochannel as well as the corresponding floodplains – so the full extent of uranium mineralisation at Yolanda remains untested to date.
“The identification that a huge 8km of the main Eyre Formation palaeochannel runs through the Yolanda Prospect makes this Marmota’s third exciting uranium exploration target at Junction Dam.
“The next and final stage of the Junction Dam review will be focusing on the NW corner of Marmota’s Junction Dam tenement immediately adjacent to where Boss has just completed their own drilling program at Jasons. Boss’s best grades come from the Jasons area.”
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.
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