Marmota Energy (ASX: MEU) has achieved an initial Inferred JORC Resource of 4.36 million tonnes uranium for its Saffron deposit, one of four prospects within its now advanced Junction Dam uranium project near Broken Hill.
The company has identified significant expansion potential within Saffron and at two other prospects immediately adjacent and has increased its exploration target to 15–20 million tonnes uranium at 0.03-0.05% uranium.
In a vote of confidence in the project, Marmota is set to increase its equity interest in the uranium rights on Junction Dam to 87.3%.
The project 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.
Significantly, the project is located adjacent to the Honeymoon in-situ leach (ISL) uranium mine (1.2 million tonnes Indicated Resource) which commenced full scale production in November 2011 with expected annual production of 880,000 pounds uranium per year.
Marmota is bullish on potential for further extensions to the Saffron prospect from additional inventory of uranium mineralisation in both the adjoining Bridget and Yolanda prospects.
The company is planning further drilling for 2012 to expand on the resource defined at Junction Dam.