Amid a dramatic upturn in both the uranium price and sentiment, Marmota Limited has acquired the strategically situated Junction Dam uranium tenement in South Australia.
The acquisition will place the company in a commanding position taking a 100 per cent stake in the tenement that is immediately adjacent to the Boss Energy Honeymoon uranium tenement and mine – one of just four permitted uranium mines in Australia.
Marmota has to date spent $8 million developing a substantial uranium JORC resource immediately adjacent to the Boss uranium tenement, earning 100 per cent of the uranium rights, including a JORC inferred resource of 5.4 million pounds of U308 with an average grade of 557 ppm, and an exploration target of 22 to 33 million pounds at approximately 400 to 700 parts per million.
The average grade of the Junction Dam JORC resource are approximately twice those of the Alligator Energy Samphire uranium project in South Australia (230ppm).
Following the granting of ministerial consent, Marmota has taken full legal title to the tenement and all minerals, which bookends both sides of the palaeochannel that passes through the Honeymoon mine. Marmota has agreed to pay 5 per cent of the net profits on production from a future uranium mine at the site to the previous tenement holders, which includes mining giant Teck Australia.
The company said the acquisition will provide the potential to significantly increase the size of resources with further drilling.
“Marmota started life as a successful uranium explorer,” chairman Dr Colin Rose said.
“The company is extremely fortunate to still have these assets, and I find it enormously exciting to be returning to our origins in the uranium space.
“The acquisition of the Junction Dam tenement makes Marmota, for the first time, masters of our own destiny in the uranium space.
“It is the first and critical step for the company to realise the value of this outstanding asset for our shareholders.”
MEU’s Australian Stock Exchange-listed shares have risen 4.35 per cent, trading at 4.8c, today (8:13 am GMT+ 8 hours).