Marmota (ASX:MEU) has restarted exploration at its Junction Dam Uranium Project in South Australia in the hopes of ‘substantially’ growing its uranium resource.
The $33.88 million market capitalisation company says the project currently has a JORC inferred resource of 5.4 million pounds (Mlbs) @ 557 parts per million (ppm) triuranium octoxide (U3O8) and an exploration target of 22 to 33Mlbs @ 400-700ppm U3O8.
Marmota reports there is ‘significant’ potential to ‘considerably’ increase the size of its uranium resource given its 2 adjoining uranium prospects, Bridget and Yolanda, are not yet included in the current Junction Dam resource.
The company notes the deposits demonstrate respective uranium grades of up to 2,494ppm and 1,258 UEO8 and grade thicknesses of 3,133ppm and 2,514ppm U3O8.
Meanwhile, the company says assays from its Saffron deposit have returned grades of up to 8,143ppm U3O8, with grades increasing on a west-to-east trend towards the Junction Dam tenement.
Marmota adds uranium mineralisation is open across all prospects.
Marmota’s Junction Dam resource lies within the same Yarramba Palaeochannel as Boss Energy’s (ASX:BOE) Honeymoon Uranium Mine, which currently has a resource of 36Mlb @ 660ppm U3O8. Junction Dam bookends both sides of the palaeochannel of the Boss Honeymoon plant.
The company says the value of uranium in the Yarramba Palaeochannel is self-evident from the market capitalisation of Boss Energy (ASX:BOE), which currently exceeds $1.5 billion.
Boss Energy began mining activities at its Honeymoon Uranium Mine earlier this month as it works to become Australia’s third uranium producer, as reported on 11 October.
Marmota Chairman Colin Rose says now is the time to take advantage of the ‘dramatically increasing’ uranium market changes.
“The Junction Dam uranium resource is one of the most exciting uranium deposits in South Australia. The future for Marmota looks very promising, with both Aurora Tank gold and Junction Dam uranium showing the potential to be outstanding deposits.
“The Junction Dam uranium resource is one of the most exciting uranium deposits in South Australia”
The timing is also perfect for Marmota, with Aurora Tank gold reaching an advanced stage and focus there shifting from exploration to the production pathway (notably carrying out metallurgical testwork to optimise low-cost heap leach production), and with the uranium market fundamentals and sentiment dramatically increasing.”
Marmota is a South Australian gold, copper, and uranium explorer with a portfolio of assets including the Gawler Craton Project near the Challenger gold mine, the Melton Project on the Yorke Peninsula, and its flagship Junction Dam Project adjacent to the Honeymoon mine.
Marmota had $4.05 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Marmota and Pexels
