The nuclear renaissance is shining ever brighter as spot prices touch US$80\/lb.<\/p>\n
For uranium explorers like Marmota (ASX:MEU),<\/a> the prolonged downturn following the Fukushima incident necessitated a shift to commodities like gold, which led to the Aurora Tank discovery in South Australia\u2019s Gawler Craton.<\/p>\n Aurora Tank is a prize in its own right, with extensional drilling yielding multiple close to surface super high-grade intercepts over 100g\/t.<\/p>\n MEU believes the deposit lends itself to simple low-cost, low capex, open pit heap-leach mining \u2013 great news in a time of record gold prices.<\/p>\n However, it has been uranium\u2019s comeback that is recently rejuvenating the explorer.<\/p>\n The company is restarting its Junction Dam uranium project which already has a 5.4Mlbs (U308) JORC resource at 557ppm, in the premier uranium jurisdiction of South Australia.<\/p>\n MEU\u2019s goal is to first grow the uranium resource at the existing Junction Dam resource area (called Saffron), and then expand it further by bringing in the Bridget and Yolanda prospects, which have not been included in the project\u2019s resource.<\/p>\n \u00a0<\/p>\n The Junction Dam uranium tenement bookends both sides of the paleochannel of Boss Energy\u2019s Honeymoon uranium plant. Pic via Marmota<\/p>\n \u00a0<\/p>\n Along with the Saffron deposit, these prospects have an existing exploration target of between 22Mlbs and 33Mlbs U3O8 at a grade range of 400-700ppmm, which is similar to Boss Energy\u2019s (ASX:BOE)<\/a> Honeymoon uranium mine, only 18km to the west.<\/p>\n Honeymoon, one of just four permitted uranium mines in Australia, has commenced mining operations with first production expected this quarter.<\/p>\n Stockhead<\/em> sat down with Marmota\u2019s head of exploration Aaron Brown, executive chairman Colin Rose and engaged uranium expert Mark Couzens to get the lowdown on Junction Dam.<\/p>\n \u00a0<\/strong><\/p>\n \u201cThe same paleochannel [hosting] Boss\u2019 Honeymoon starts off by first flowing through the Junction Dam tenement, so the potential of Junction Dam was always clear,\u201d executive chairman Colin Rose says.<\/p>\n \u201cMarmota owned another tenement slightly to the east but soon realised that the real prize was on the Junction Dam tenement (which we did not own) and was at the time owned by the huge multinational Teck, together with two smaller parties.<\/p>\n \u201cWe then entered into a JV with Teck (and the other two owners) which led to Marmota earning 100% of the uranium rights to Junction Dam.\u201d<\/p>\n \u00a0<\/p>\n \u201cThe decision to secure 100% ownership of the tenement in 2021 was really all about giving us the flexibility to make decisions ourselves, to move rapidly, and to be masters of our own destiny in the uranium space,\u201d Rose says.<\/p>\n \u201cPrior to acquiring ownership of the tenement, Marmota owned 100% of the uranium rights but the tenement was owned by a consortium of three companies.<\/p>\n \u201cIt\u2019s like the difference between owning a house and wanting to make it bigger \u2026 versus renting an apartment (and wanting to do the same thing).<\/p>\n \u201cAs an owner, everything is easier and faster, and does not require getting three signatures from three different parties anymore\u2026 it was a very important change for us.\u201d<\/p>\n \u00a0<\/p>\n \u201cThe geology at Junction Dam and at the Honeymoon Uranium mine are very similar,\u201d head of exploration Aaron Brown says.<\/p>\n \u201cBoth are located within the same Yarramba Paleochannel.<\/p>\n \u201cThe resource grades are similar, the depth of mineralisation is similar and the uranium mineralisation is found primarily within the Eyre Formation at both projects.\u201d<\/p>\n \u00a0<\/p>\n \u201cFrom a regulatory point of view, approvals already exist in the area and there are no known issues,\u201d Rose says.<\/p>\n \u201cThe potential for substantial resource growth next to one of the four permitted uranium mines in Australia provides a significant advantage looking down the road towards production.<\/p>\n \u201cAccording to their own feasibility studies, Boss themselves need a larger resource to achieve economies of scale to lower cost of production and to extend mine life through development of satellite resources.<\/p>\n \u201cIn fact, they just started drilling a few days ago at Jasons (right next door to Marmota\u2019s Junction Dam tenement).<\/p>\n \u201cIt also provides us with optionality.<\/p>\n \u201cWith Honeymoon already having processing facilities established for uranium mining, there is the added optionality that uranium mined at Junction Dam could be connected by a trunkline to Honeymoon, which would dramatically reduce capex and upfront processing costs.<\/p>\n \u201cAlternatively, depending on how large Junction Dam grows, Junction Dam could develop into a local hub of uranium mines, which has its own benefits of shared knowledge and expertise, particularly when somebody else has already had to work out how to optimise the production process,\u201d he says.<\/p>\n \u201cThat\u2019s a huge advantage.\u201d<\/p>\n \u00a0<\/p>\n \u201cMarmota contracted uranium specialist Mark Couzens to assist in reviewing all the available drilling data as well as creating a revised stratigraphic model for the mineralisation at Junction Dam with the aim to substantially grow the uranium resource at Saffron,\u201d Rose says.<\/p>\n \u201cThis work has already led to the identification of four new exploration targets at the Saffron uranium deposit with the aim for drill testing in early 2024.<\/p>\n \u201cMark has also started reviewing the Bridget and Yolanda prospects which currently form part of the substantially larger exploration target, and our intention is to substantially grow the resource model by building them into the model, with additional growth zones and new drill targets.\u201d<\/p>\n \u00a0<\/p>\n \u201cSentiment across uranium explorers worldwide at the moment is the most positive it has been in the last 10 years,\u201d uranium expert Couzens says.<\/p>\n \u201cThe uranium spot price continues to grow and the worldwide demand for uranium appears to be under-supplied indicating that more uranium mines will be needed to meet the needs of the world.\u201d<\/p>\n \u201cThere are two other factors I would add to that,\u201d Rose says.<\/p>\n \u201cThe first is that uranium is now perceived as green, as a path to clean energy, and as a saviour from the potentially catastrophic problems of global warming and climate change.<\/p>\n \u201cThat is very, very different from just 10 years ago. And those climate problems are not going away.<\/p>\n \u201cSecond, the uranium market is very different from other minerals such as lithium.<\/p>\n \u201cIt is much more difficult for supply in the uranium sector to respond quickly to increasing demand (particularly with regulatory\/licensing issues), so when demand increases (which has been forecast for years and is happening now), it appears likely to be here to stay.\u201d<\/p>\n \u00a0<\/p>\n <\/span><\/span>\u00a0 The post Q+A: Why it\u2019s the perfect time for Marmota to return to its uranium roots<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"How did you come across the project?<\/strong><\/h2>\n
What influenced your decision to move to acquire the tenement in 2021? <\/strong><\/h2>\n
In what ways is your Junction Dam uranium project analogous to Boss\u2019 adjacent Honeymoon uranium mine? <\/strong><\/h2>\n
What other benefits does the proximity to the Honeymoon Mine provide? <\/strong><\/h2>\n
You\u2019ve got a uranium resource outlined at the project already. What are your immediate next steps and what do you intend to achieve in 2024? <\/strong><\/h2>\n
Has the turning point finally come for uranium stocks?<\/strong><\/h2>\n
Marmota\u2019s share price today: <\/strong><\/h2>\n\n
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