Marmota Limited Kicks Off Drilling at Campfire Bore Gold Discovery
MEU (MEU) Share Update September 2024 Monday 9th
Marmota Limited Commences Drilling at Campfire Bore Gold Discovery
Marmota Limited (ASX: MEU) has announced the commencement of its first-ever drilling program at the Campfire Bore gold discovery. This marks a significant milestone for the company as it explores the potential of this underexplored site.
Instant Summary:
- 165 planned RC drill holes at Campfire Bore.
- Total drilling of 16,500 meters.
- Average hole depth of approximately 100 meters.
- Campfire Bore part of the Golden Moon JV with Coombedown Resources.
- Marmota holds 90% ownership via Half Moon.
- First drilling at Campfire Bore since 2018.
- Potential for low-cost open-pit mining.
- Gold price more than double since 2018.
Drilling Program Details
Marmota Limited has commenced its first drilling program at the Campfire Bore gold discovery, part of the Golden Moon Joint Venture (JV) with Coombedown Resources Pty Ltd. The program includes 165 planned reverse circulation (RC) drill holes, covering a total of 16,500 meters, with an average hole depth of approximately 100 meters.
Figure 1 in the announcement provides a plan view of the proposed drill holes, highlighting the significant extent of the gold deposit at Campfire Bore. This area remains substantially underexplored, offering enormous potential for growth.
JV and Ownership
The Golden Moon JV, which includes Campfire Bore, is a collaboration between Marmota and Coombedown Resources. Marmota holds a 90% ownership stake via its subsidiary, Half Moon. This program marks the first drilling activity at Campfire Bore since 2018, aiming to unlock the site's potential.
Comparison with Aurora Tank
Campfire Bore has had minimal drilling compared to Marmota's Aurora Tank project, which currently boasts over 60,000 meters of RC drilling. In contrast, Campfire Bore has only about 10,000 meters of RC drilling, despite being mineralized over a much larger area. Many of the pre-existing holes at Campfire Bore are shallow, sometimes only 20 to 30 meters deep.
Economic Potential
All reported resources at Campfire Bore are close to the surface, within 100 meters, making them amenable to low-cost open-pit mining. The current gold price of approximately A$3750 per ounce is more than double the price in 2018, when the resource work was done using cut-off grades of 0.5 g/t and 0.8 g/t.
Proximity to Aurora Tank
The Golden Moon JV gold deposits, including Campfire Bore, are located close to Marmota's flagship Aurora Tank gold discovery. This proximity creates obvious economies of scope and scale, making the projects even more attractive to Marmota. Aurora Tank features outstanding gold intersections, including multiple bonanza gold grades close to the surface, with excellent potential for low-cost, low-capex open-pit heap leach gold production.
Chairman's Statement
Marmota's Chairman, Dr. Colin Rose, expressed his excitement about the new drilling program, stating, 'Golden Moon complements Aurora Tank brilliantly. The commencement of drilling at Campfire Bore heralds the beginning of a new era of gold exploration and resource growth in the Gawler Craton. We are delighted to be working with a professional and experienced JV partner who is focused on getting things done.'
The commencement of drilling at Campfire Bore is a positive development for Marmota Limited, potentially leading to significant resource growth. The proximity to the Aurora Tank project and the favorable gold price environment further enhance the economic potential of this venture. Investors may see this as a strategic move to capitalize on underexplored assets, potentially boosting Marmota's stock price.
Investor Reaction:
Analysts are likely to view this announcement favorably, given the potential for resource growth and the strategic advantages of the Golden Moon JV. The significant increase in gold prices since 2018 adds to the project's attractiveness. However, the actual impact on the stock will depend on the drilling results and subsequent resource estimates.
Conclusion:
Investors should keep an eye on the progress of the drilling program at Campfire Bore and any updates from Marmota Limited. The potential for resource growth and the favorable gold price environment make this an exciting development for the company. Stay tuned for further updates as the drilling progresses.