Marmota Energy (ASX: MEU) is targeting high grade uranium at the company’s Junction Dam Project in South Australia, in a phase three drilling program.
Exploration will commence at the Bridget and Saffron prospects this month, after electromagnetic surveys at defined multiple targets, comprising 80 shallow rotary mud drill holes at Saffron, and 20 at Bridget.
Adding to the prospectivity of the new exploration program is that Marmota drilled 60 rotary mud holes in August 2010, with substantial uranium mineralisation after downhole gamma readings.
These results followed a maiden 20 hole drill program at the project in 2009.
Marmota’s Junction Dam is a joint venture agreement with Teck Australia Pty, a subsidiary of Teck Resources (NYSE: TCK), Platsearch (ASX: PTL) and Eaglehawk Geological Consulting Pty to explore for uranium deposits.
The company holds a 74.5% stake in the project.
However, Marmota is set to increase the company’s stake in the project as Teck and its partners do not intend to contribute to the phase three program.
The project lies on the South Australia – New South Wales boundary and is located 50 kilometres from Broken Hill.