The Junction Dam project is located 10 km east of the Honeymoon uranium mine (a 1.2 Mt Indicated Resource owned by Uranium One) and 50 km west of Broken Hill. The project adjoins Marmota's Mulyungarie project (EL5124) where a high resolution gravity survey confirmed that the Junction Dam and Mulyungarie tenements cover up to 20 kms of the eastern extension of the Yarramba Palaeochannel which hosts Honeymoon.
In September 2009, Marmota entered into a Joint Venture Agreement with Teck Australia Pty Ltd (a subsidiary of Teck Resources Limited), Variscan Mines and Eaglehawk Geological Consulting Pty Ltd for the exploration of uranium on the Junction Dam project, and to date, has earnt an 100% interest in the uranium rights.
Marmota has announced a 4.36 million tonne U3O8 Inferred Resource for the Saffron deposit, one of four uranium prospects identified on the project. The Inferred Resource of mineralisation has been estimated in accordance with the JORC code and comprises:
- 4.36 million tonnes of mineralisation
- *Estimated to contain 2,460 tonnes of U3O8 (5.43 million pounds)
- Two mineralised sand layers of the Eyre Formation (basal and upper) intersected
- Average grade of 712 parts per million (0.07%) eU3O8 and 404 parts per million (0.04%) eU3O8 for the basal and upper layers respectively
- Average thickness of mineralised intersections is 2.57m and 1.07m for the basal and upper layers respectively
Junction Dam tenement location
Summary of exploration
Ground based geophysical surveys (gravity, electromagnetics - EM), assisted greatly with drill targeting at Junction Dam. These geophysical techniques highlighted the Yarramba Palaeochannel which hosts the uranium mineralisation at Junction Dam.
In total, 222 rotary mud drill holes have been drilled at the Junction Dam project. 11 sonic drill holes have also been drilled. Downhole gamma readings indicating high grade uranium mineralisation of potential economic significance hosted within carbonaceous and pyritic sediments of the Eyre Formation are regularly encountered at the project area. Sands of the Eyre Formation offer an ideal environment for sandstone-hosted uranium. The strike length of mineralisation at the project has now extended to approximately 15 kilometres.
Quantitative Evaluation of Minerals by SCANning electron microscopy (QEMSCAN) has been undertaken on mineralised samples from the sonic drilling program. Uranium minerals, uraninite and autinite are confirmed to be present, analogous to the uranium minerals present at Honeymoon. The QEMSCAN studies also indicated that up to 98% of the uranium is potentially leachable, further studies would confirm this.
*Upward revision of the Saffron deposit inferred resource size as indicated above follows the application of an average positive disequilibrium factor of 1.63. This is an indicative result and further assessment is underway.