all ords report here Marathon Resources LtdABN 31 107 531 82210...

all ords report here Marathon Resources Ltd
ABN 31 107 531 822
10 George Street
Stepney SA 5069
T 08 8366 2500
F 08 8362 5955
[email protected]
www.marathonresources.com.au
Tuesday, 2 August 2005
COMPANY ANNOUNCEMENT OFFICE
AUSTRALIAN STOCK EXCHANGE
PARALANA ORE SYSTEM (EL3258)
WORLD CLASS URANIUM-REE-POLYMETALLIC SYSTEM
MT GEE DEPOSIT JORC COMPLIANT RESOURCE
URANIUM (U3O8) – 33,200 TONNES
RARE EARTH LANTHANUM-CERIUM – 51,800 TONNES
SIGNIFICANT URANIUM POTENTIAL
HIGH GRADE HODGKINSON DEPOSIT
ARMCHAIR AND STREITBERG
Introduction
Marathon Resources is actively exploring for uranium deposits within South Australia. Its
advanced 100% owned uranium-REE-polymetallic project (EL3258) is located in the Mt
Painter-Mt Gee area of the North Flinders Ranges, South Australia.
Host to the significant uranium-REE-polymetallic mineralisation are bodies of granitic and
haematitic breccia, which extend along northeasterly trending alignment coincident with a
prominent tectonic deformation system in the region, the Paralana Fault System. Most of the
breccia consists of clasts derived locally from the middle Proterozoic granites known as the
Mount Painter Complex. Uranium mineralisation is represented by the primary uranium
mineral uraninite, but secondary minerals torbernite and autunite were also identified.
Earlier explorers identified at least seven orebodies and a number of prospects within EL3258
(Figure 1). They form the Paralana Ore System (POS), which extends across the tenement over
a distance of 11 – 12 km along the north easterly trend of the Paralana Fault System.
Marathon’s study has determined that the Paralana Ore System is associated with a specific
basement propagated tectonic deformation system. The orebodies and mineralised zones are
structurally controlled and their propagation and locations are confined to specific tectonic
features which control mineralised breccia development and distribution, as determined by
Marathon’s tectogenetic study (see Marathon Prospectus, page 9).
Background
The Paralana Ore System was intensely drilled in the past. Archival database material from an
Exoil led consortium of exploration companies (“Exoil”) contains 625 drill holes of total length
approximately 53,000 meters, drilled between 1968 and 1972. The exploration and evaluation
work by Exoil defined a range of 3.8-5.3 million tonnes of uranium mineralisation with a grade
range of 1.0kg – 1.2kg U3O8 per tonne (2.2lb - 2.8lb) within 5 deposits (Mt Gee, Armchair,
Streitberg, Hodgkinson and Radium Ridge) of the Paralana Ore System.
Marathon Resources Ltd - ASX Release 2-8-05 Page 1
Exoil’s estimates of the uranium mineralisation content for each of these deposits are provided
in Table 1.
Table 1 Exoil Estimates for Uranium Mineralisation in the POS
Deposit Tonnes U3O8 tonnes Grade kg/tonne (ppm)
Mt Gee 2,000,000 2,200 1.1 kg/t (1,100 ppm)
Hodgkinson 220,000 484 2.2 kg/t (2,200 ppm)
Armchair 680,000 680 1.0 kg/t (1,000 ppm)
Streitberg 600,000 600 1.0 kg/t (1,000 ppm)
Radium Ridge 1,730,000 1,211 0.7 kg/t (700 ppm)
Total 5,230,000 5,175 1.0 kg/t (1,000 ppm)
Cut-off grade 0.45 kg/t (450 ppm)
Following Exoil’s exploration, the Mt Gee, Armchair and Streitberg deposits were drilled by
CRAE (now Rio Tinto) with 68 diamond and RC drill holes of total drilling length 14,531
metres. The CRAE drill holes with symbol PD91 were drilled in 1991, while those with DD 92
in 1992. However, at the completion of exploration CRAE did not calculate a resource and
withdrew from the project in 1994.
After CRAE drilling, Goldstream Mining put down 7 holes between 1999 and 2000. More
recently Marathon’s subsidiary drilled a 636.30 meter long diamond drill hole at the Mt Gee
area in 2002 (MTG01, Figure 1). This is the deepest hole within EL3258 as previous
exploration focussed on near surface and shallower level mineralisation. Continuous uranium
mineralisation along the whole length of the hole is demonstrated, with zones of distinctly
elevated uranium contents, including a 124 meters zone of 0.11kg/t U3O8 located in the
deepest part of the hole. Results of this drilling indicate that potential for uranium-REEpolymetallic
mineralisation is not only near surface or at shallow levels, but is open with depth.
Archival Data Integration and Modelling of the Paralana Ore System
The EL3258 archival exploration and drill hole database had never been digitised. In February
2005 Marathon contracted an European consulting group, the Economic Geology Centre at the
University of Mining and Metallurgy in Krakow led by Professor Adam Piestrzynski (a
member of a number of professional societies including the Polish Geological Society, a
Member of the Federation of European Geologists), to review the database, aiming at
unification and computerisation of the past exploration data. Based on the digital database
generated at the early stage of the project, in particular with the combining of part of the Exoil
data (that which was classified as “of high confidence”) and all the CRAE drilling data, 3D
modelling of the Paralana Ore System was possible.
The computer modelling was conducted in conjunction with Marathon’s tectogenetic analysis
of the Paralana Ore System. This study provided predictive criteria for interpretation of the
POS and its internal structural geometry (including fault network variability), which controls
the grade and positioning of mineralised zones, the internal geometry of deposits, and at a
larger scale, deposit distribution.
Marathon Resources Ltd - ASX Release 2-8-05 Page 2
The study also provided sufficient information for the creation of a 3D model of the Mt Gee
deposit and for the development of a conceptual exploration and drilling program for the
Armchair and Streitberg deposits.
The computer modelling work allowed a JORC compliant resource estimation for the Mt Gee
orebody, which has the most advanced and sufficient database (in terms of drilling exploration
results). Two cut-off grade values were used: >500 ppm U3O8 for higher grade and 300 – 500
ppm for lower grade uranium mineralisation. The latter is consistent with criteria applied in
mining of a world-class deposit, the Rossing uranium deposit in Namibia.
MT GEE DEPOSIT – JORC Compliant Resource
33,200 Tonnes of Uranium (U3O8) Resource
The Mt Gee deposit is localised within the area of a detailed geophysical gravity survey (Figure
2). The geological and mineralisation model and the resource estimation for the deposit is based
on the integrated Exoil and CRAE drilling database. In total 31 Exoil and all CRAE drill holes
were satisfactory for the resource calculation. Another 21 positive Exoil holes (>500 ppm) were
identified, but were not taken into account in resource estimation because of uncertainty in
collar elevations. An example presentation of digitised drill hole data of the host geological
sequence is illustrated in Figure 3, and of uranium intervals distribution and content in Figure 4.
The Mt Gee 3D model developed on the basis of the drill hole database is presented in Figure 5.
The resource occurs near the surface to the west and continues as a low angle east dipping
orebody. The orebody geostatisitcal model and the kriging method applied determined in total a
33,200 tonne JORC compliant uranium (U3O8) inferred resource (Table 2).
Table 2 Resource at Mt Gee Deposit
Uranium
(U3O8)
(tonnes)
Rare Earth Elements
Lanthanum-Cerium (La-Ce)
(tonnes, in zones >500 ppm U3O8 only))
24,800 t inferred resource
including
indicated resource 3,760 t
(Grade >500 ppm cut off)
51,800 t La-Ce inferred resource
8,400 t inferred resource
(Grade 300 – 500 ppm)
Total 33,200 t U3O8 Total 51,800 t La-Ce
Note: 500ppm is equivalent to 0.05% and 0.5 kg/tonne
In summary, the uranium resource with a U3O8 cut off grade of >500 ppm (>0.05%) is
estimated at about 24,800 tonnes. Mean grade is estimated at 730 ppm (0.073%). This resource
includes 3,760 tonnes U3O8 classified as indicated resource, located in the western part of the
deposit and which was intensely explored by Exoil with very close drill hole spacing and assay
sampling points (see Figures 2 & 6B.2 Exoil area). The distribution of grade indicates that in
the Exoil drilling area grade is about or exceeds 1000 ppm (0.1% U3O8), while it appears to be
below 1000 ppm grade in areas with the wider spaced drilling pattern used by CRAE (Figures
6A & 6B). A number of higher grade intersections (>1000 ppm or >0.1%) were recorded in
Marathon Resources Ltd - ASX Release 2-8-05 Page 3
drill hole data for this area and it is anticipated that the tonnage and average grade of the
deposit may increase with closer drill hole spacing and with progress of exploration drilling
planned for later this year.
In drill holes adjacent to zones with >500 ppm cut off, lower grade zones of the 300 - 500 ppm
are present. These zones have been identified as inferred resource containing in total about
8,400 metric tons U3O8 with the mean grade 368 ppm.
Drilling data indicates that a large number of Exoil drill holes stopped within the mineralised
zones (see bottom of holes in Figure 4). It is one of the Marathon’s exploration goals to re-drill
some of these areas to intersect the full thickness of mineralised zones and in this way increase
the orebody resource.
The grade distribution data (Figure 6A), thickness of ore zones (up to about 30 m, Figure 7A)
and interpreted accumulation U3O8 index (up to 90 kg/m2 in richer zones, Figure 7B) indicate
continuity of mineralisation and resource within the orebody, with further exploration potential
open in all directions.
The JORC compliant resource estimation indicates a considerably larger tonnage for the Mt
Gee deposit alone (33,200 tonnes of U3O8 inferred resource, Table 2) compared to the range
3,800 – 5,300 tonnes of mineralisation calculated by Exoil for five deposits of the Paralana Ore
System combined (Mt Gee, Armchair, Streitberg, Hodgkinson and Radium Ridge; see Table 1).
Marathon’s conclusion is that significantly larger potential of the Paralana Ore System should
now be considered over those predicted by these earlier estimates.
51,800 Tonnes of Lanthanum-Cerium (La-Ce) Resource
The mineralogical and assay data obtained from the chemical analysis of drill hole samples
indicates that U3O8 mineralisation is accompanied by intensive development of the REE, in
particular La-Ce. Previous exploration did not focus on mineralisation other than uranium. As a
result, in many drill holes assays are incomplete without La-Ce/REE analysis. Marathon’s
MTG01 drill hole confirms the strong La-Ce enhancement with depth in U3O8 rich zones.
Marathon’s estimation indicates about 51,800 tonnes of La-Ce JORC compliant inferred
resource within the Mt Gee deposit (Table 2). The reliability of these calculations is, however,
lower than estimates for uranium, although sufficient to yield an inferred resource. The grade
distribution map shows interpreted values up to 1900 ppm (0.19% per tonne) (Figure 8A) and
accumulation index up to 210 kg/m2 La-Ce (Figure 8B).
In a number of individual drill holes of the POS, the content of these elements is found to be
relatively high. For example in drill hole DD92GE46A, the 95.8 – 101.56 metre interval gives
0.37% (3,722 ppm) Ce-La combined grade. Published data indicates up to 1.37% (13,700 ppm)
Cerium and an average content of 0.61% (6,100 ppm) in the haematitic breccia near Mt Painter
is on record. Further potential of the Paralana Ore System for La-Ce/REE is significant.
Rare earth elements are key ingredients to many new technology applications, such as modern
rechargeable batteries and high intensity permanent magnets used in mobile phones, cars and
computers. While they have long been applied in lasers and in specialty glass manufacture,
their use in hybrid vehicles has dramatically increased the potential market.
China is the largest miner of rare earths, with some 80% of the world’s production, providing
rare earths concentrates or final refined products. Total world consumption is around 90,000
tonnes. The growth markets for rare earth products are batteries and magnets used in mobile
Marathon Resources Ltd - ASX Release 2-8-05 Page 4
phones, computers and hybrid cars, with hybrid car technology holding out potential for the
most rapid growth. The market for rare earth related products grew rapidly over the past
decade. The current price of cerium oxide and lanthanum oxide is about $US3.50 per kg.
HODGKINSON DEPOSIT - High Grade Uranium Orebody
The Hodgkinson deposit was discovered and drilled by Exoil and mineralisation differs from
that in other known deposits of the POS. Uraninite is mostly associated not with haematite, but
occurs as fracture fillings in altered microcline within granitic breccia and rebrecciated breccia.
Generally, the geological database is poor as the Exoil exploration focused on uranium
mineralisation with limited attention to geology and other mineralisation (La-Ce/REE, Mo and
Cu) documented in other parts of the Paralana Ore System.
A total of 57 open percussion drill holes have been recorded from the Exoil database, which
contains in total 116 drill holes in the Hodgkinson area. Overall, 44 holes are positive with
>500 ppm U3O8 and another 13 holes with <500 ppm U3O8 content. Tectogenetic
interpretation of the data indicates that uranium mineralisation is structurally controlled and
concentrated within one or two uranium-rich zones. Sometimes, however, up to five uraniumbearing
horizons are present. The total thickness of mineralised zones is variable and ranges
from several metres up to about 40 meters (Table 3).
Table 3 Selected Drill Hole Intersections, Hodgkinson Deposit.
Drill hole JH72 Drill hole JH15
depth of top
[m]
depth of
bottom [m] thickness U3O8
(ppm)
depth of top
[m]
depth of
bottom [m] thickness U3O8
(ppm)
67.1 68.6 1.524 650 54.9 56.4 1.524 1400
70.1 71.6 1.524 830 56.4 57.9 1.524 2600
71.6 73.2 1.524 16500 57.9 59.4 1.524 2400
73.2 74.7 1.524 24000 59.4 61.0 1.524 3900
74.7 76.2 1.524 7400 61.0 62.5 1.524 4900
76.2 77.7 1.524 3000 62.5 64.0 1.524 4900
79.2 80.8 1.524 1400 64.0 65.5 1.524 5500
80.8 82.3 1.524 2100 65.5 67.1 1.524 2400
82.3 83.8 1.524 1400 67.1 68.6 1.524 4200
86.9 88.4 1.524 2100 68.6 70.1 1.524 2800
88.4 89.9 1.524 2300 70.1 71.6 1.524 2800
89.9 91.4 1.524 1500 71.6 73.2 1.524 1500
91.4 93.0 1.524 1100 73.2 74.7 1.524 3800
93.0 94.5 1.524 1100 74.7 76.2 1.524 3400
94.5 96.0 1.524 1500 76.2 77.7 1.524 7200
96.0 97.5 1.524 1400 77.7 79.2 1.524 1000
102.1 103.6 1.524 1900 79.2 80.8 1.524 5500
103.6 105.2 1.524 600 80.8 82.3 1.524 3900
105.2 106.7 1.524 600 82.3 83.8 1.524 2600
83.8 85.3 1.524 2300
85.3 86.9 1.524 3200
86.9 88.4 1.524 3100
88.4 89.9 1.524 2200
89.9 91.4 1.524 1000
91.4 93.0 1.524 1300
Total thickness 28.95m Total thickness 38.10m
In the early 70’s Exoil estimations produced a figure of 220,000 tonnes at a grade of 2.2 kg/t
within the Hodgkinson orebody (Table 1). These calculations, together with assay results from
individual drill holes, indicate that the uranium mineralisation of this orebody represents the
Marathon Resources Ltd - ASX Release 2-8-05 Page 5
highest grade intersections found within the Paralana Ore System at this stage. Numerous
intersections with grade between 0.5% and 1.0% were recorded. Some spectacular intersections
were identified, such as 1.65% U3O8 (16,500 ppm) from 71.63 - 73.15 metres and 2.40% U3O8
(24,000 ppm) from 73.15 - 74.68 metres in drill hole JH72 and an average grade of 0.37% U3O8
(3,757 ppm) within an interval 38.10 metres thick in drill hole JH15 (Table 3).
The significant high grade mineralisation potential of the Hodgkinson deposit has been
demonstrated in the Exoil database. Marathon’s re-assessment, in conjunction with the EGC
consultants, is currently underway to validate the deposit size and nature, including structural
controls and a tectogenetic model for the mineralisation. A detailed gravity survey similar to
that done for the Mt Gee deposit is also planned to be carried out prior to resource drilling.
ARMCHAIR AND STREITBERG DEPOSITS - Advanced Exploration Stage
The Armchair and Streitberg deposits occur within breccia material identified northeast of the
Mt Gee deposit (Figure 1). Previous exploration was conducted by both Exoil and CRAE.
These two deposits occur in close vicinity and are considered by Marathon as a single advanced
exploration area.
Both Armchair and Streitberg areas were drilled by Exoil and from the existing database 44
drill holes and 17 drill holes respectively were identified as having a sufficiently “high level of
confidence” for satisfactory application to deposit reassessment. For the Armchair deposit, 25
drill holes were considered positive, with >500 ppm U3O8 grade, while for the Streitberg
deposit, 10 drill holes were positive. Marathon’s analysis of the data indicates that the Exoil’s
exploration drilling produced a number of intersections with grade well above 0.1% (>1000
ppm).
At Armchair, Exoil estimated 680,000 tonnes of uranium mineralisation averaging 0.1% U3O8
(680 tonnes of U3O8), and, at Streitberg, 600,000 tonnes at the same average grade (600 tonnes
U3O8). Later exploration drilling carried out by CRAE at both the Armchair and Streitberg
areas concluded without resource calculation.
The Armchair-Streitberg area appears to represent a similar mineralisation style and grade as
the Mt Gee orebody. Exploration both by Exoil and CRAE was focused on the near surface
potential and, as a result, the bulk of the known mineralisation is located very close to the
surface.
The area shows further excellent exploration potential for uranium as well as La-Ce/REE and
polymetallic components (Mo, Cu). To supplement and upgrade the geological and
mineralisation database generated by Exoil and CRAE, and to prepare for resource assessment
based on geostatistics and kriging, additional diamond drilling of the deposit area is required.
The locations of five proposed diamond drill holes are shown in Figure 1.
OTHER DEPOSITS
Radium Ridge Deposit – Proven Exploration Potential
The Radium Ridge deposit is located to the northwest of the Mt Gee deposit (Figure 1).
Marathon’s recent review of the database indicates that within the deposit Exoil drilled at least
79 exploration holes of which 39 contain grades over 500 ppm U3O8 with the rest (40 holes)
less then 500 ppm.
Marathon Resources Ltd - ASX Release 2-8-05 Page 6
Current data indicates that uranium mineralisation is mostly concentrated at very shallow
levels, near the surface. A total of 1,730,000 tonnes of mineralised material containing 1,211
tonnes U3O8 at an average grade of 0.7 kg/t is shown in the Exoil database.
Published data indicates the presence of higher grade mineralised zones. The data includes
small tonnage of uranium ore mined out from underground workings, immediately after the
discovery of Radium Ridge in the early 20th century. From underground, 300 tons (~300
tonnes) of uranium mineralisation containing 0.5% U3O8, and even higher grade material in the
range 0.75 – 1.0% U3O8, was reported.
The Radium Ridge deposit and its extensions are highly prospective and Marathon considers its
exploration and drilling a high priority.
East Painter Deposit – Proven Exploration Potential
The East Painter deposit (Figure 1) was explored by the Department of Mines and Energy
during the period 1946-1950. Investigation at the East Painter area has shown a broad general
relationship between rock structure and the low grade uraniferous breccia masses. According to
published data, identified mineralised material contains “probably about 10 million tones low
grade uraniferous breccia averaging about 0.3lb U3O8 per long ton”.
The published data also indicates that exploration included 2,714 ft (827 metres) of adit levels
and 7,099 ft (2,164 metres) of diamond drilling, and that only about 10% of the total volume of
the breccia body was tested. Higher grade zones, such as 500 tons 0.33% U3O8 are on the
record, and high grade mineralisation also occurs in small localised veins outside of the breccia
zones.
Marathon’s ongoing review of the archival database has identified several drill holes which
intersected uranium mineralisation, including three holes (EP8, EP18 & EP21) with >500ppm
U3O8 and seven (EP9 – EP13, EP19 & EP27) holes with <500 ppm contents.
Further exploration potential exists and Marathon plans to develop an exploration program to
drill test the deposit.
CONCLUSION – PROJECT STATUS
In February 2005 Marathon commenced a comprehensive review of the EL3258 database. The
results of the work, carried out in conjunction with EGC, indicate that the Paralana Ore System
is a world-class uranium-REE-polymetallic system. The system contains seven deposits and a
number of exploration prospects widespread along its 11- 12 km extension.
The Mt Gee orebody, with a 33,200 tonnes U3O8 inferred resource (including 3,760 tonnes
indicated resource) and 51,800 tonnes La-Ce inferred resource, demonstrates the capacity for
large scale deposits within the Paralana Ore System.
The Hodgkinson deposit (484 tonnes of mineralisation with an average, grade U3O8 of 0.22%,
with up to 2.4% U3O8 on record) displays significantly higher grade than other POS deposits
and shows that high grade mineralisation exists within the Paralana Ore System. Further
assessment is being carried out prior to planning of a drilling program.
The Armchair-Streitberg deposit area (1,280 tonnes of mineralisation with an average grade
0.1% of U3O8) is classified as highly prospective. The advanced exploration stage requires
further drilling which will be conducted in conjunction with drilling of the Mt Gee deposit.
Marathon Resources Ltd - ASX Release 2-8-05 Page 7
A number of other areas within the POS are classified as displaying significant exploration
potential. The Company’s exploration strategy is to expand its knowledge of the POS by
incorporating these lesser explored areas as well as small historic diggings into its ongoing
exploration program.
Tectonic deformation style controls the development and mineralisation pattern. The reassessment
of the POS database in its tectogenetic context provided predictive criteria for the
interpretation of tectonic features which control positioning and the internal geometry of
mineralised zones and, at a larger scale, ore zone and deposit distribution.
The mineralisation occurs predominantly along N-S and WNW-ESE and SW-NE oriented
structures, with the overall ore system trend consistent with the northeast orientation of the
Paralana Fault System. Marathon’s exploration model indicates significant further potential in a
repetitive pattern of mineralisation both along strike and with depth. Marathon’s MTG01 drill
hole, which intersected 636 meters of continuous uranium mineralisation, supports this model.
The information in this report has been compiled by Dr Vic W Bogacz, Executive Director of Marathon
Resources Ltd, who is a Member of the Australian Institute of Geoscientists and the Polish Geological
Society, a Member of the Federation of European Geologists. Dr Bogacz is also a member of the
international Society of Geology Applied to Mineral Deposits. Dr Bogacz has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration to qualify as a
Competent Person for the purposes of the 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves.
Contact Dr John Santich Dr Vic W Bogacz
Chief Executive Officer Executive Director (Technical)
Company Code MTN
Telephone (08) 8366 2500
Facsimile (08) 8362 5955
Web www.marathonresources.com.au
Marathon Resources Ltd - ASX Release 2-8-05 Page 8
6655000
6654000
6653000
6652000
6656000
6657000
6658000
6659000
6660000
6661000
6662000
340000
341000
342000
343000
344000
345000
346000
347000
348000
349000
350000
339000
338000
337000
336000
335000
334000
333000
6651000
EL 3258
RADIUM RIDGE
MINERVA HEIGHTS
MT GEE
MT PAINTER
EAST PAINTER
ARMCHAIR
STREITBERG
HODGKINSON
Figure 1. Location Plan EL 3258. Paralana Ore System Deposits and Prospects
limi o ra ity su v y t f g v r e
BILLS FOLLY
SMILER
MT WARD
HAWTHORNE
ROLLING STONES
HORN
O’SULLIVANS
HEMATITE VALLEY
TURQUOISE
no data
negative (shallow drill)
positive (300-500 ppm U O ) 3 8
negative
positive (>500 ppm U O ) 3 8
DD91GE13
DD91GE11
DD91GE16
DD91GE14
PD91GE22
DD92GE47
DD92GE49
PD91GE26
PD91GE2
PD91GE3
PD91GE20
PD91GE8
DD91GE24
DD91GE36
DD91GE29
PD91GE7
DD92GE64
DD92GE63
PD92GE65
PD92GE66
PD92GE60
DD93GE67
PD91GE30
PD91GE32
PD91GE34
PD92GE40
PD92GE41
PD92GE43
PD92GE44
DD91GE19
PD91GE21
DD91GE15
DD91GE17
PD92GE59
PD92GE61
DD92GE39
DD92GE50a
PD91GE31
DD92GE54
PD92GE42
PD92GE45
DD91GE28
PD91GE1
DD91GE6
DD91GE9
PD91GE4 PD91GE23
DD91GE10
PD91GE5
DD91GE12
PD92GE62
DD92GE56
DD92GE52
PD91GE35 DD92GE51
DD92GE57a
DD92GE58
DD91GE37
DD92GE53 DD92GE46a
DD92GE38
DD91GE33
DD91GE27
BD91GE25
2 4 DD9 GE 8
DD92GE55
DD93GE68
DD91GE18
Mt Gee
Proposed drill holes
Armchair/Streitberg
Deposits
Par la a e Sy em a n Or st
DEPOSITS
PROSPECTS
Marathon Resources Ltd - ASX Release 2-8-05
Limit of gravity survey area
339500 340000 340500 341000 341500
6653500
6654000
6654500
6655000
6655500
6656000
MTG-01
MTG-01 drill hole (Marathon data)
Goldstream drill holes (004, 005, 006, 007)
drill holes, no U information (Exoil data)
drill holes, no U information (Marathon data)
Goldstream drill holes (001, 002, 003)
resources, grade >500 ppm (Exoil data)
resources, grade >500 ppm (CRA Exploration data)
resources, grade 300-500 ppm (CRA Exploration data)
negative (CRA Exploration data)
negative (shallow drill) (CRA Exploration data)
resources, grade 300-500 ppm (Exoil data)
Figure 2. Detailed Gravity Survey Area, Exploration Drill Hole Locations
Mt Gee Deposit
Mt Gee U3O8 deposit
- limit of resource calculation
Figure 3. Geological Interpretation, Mt Gee Deposit. Based on CRAE Drill Hole Data
granite
Mt Gee Unit
schist
quartz veins
hematite rock
gneissic granite
metasediment
amphibolites
economic resources
sub-economic resources
alt - altered
chl - chloritic
Fe - ferruginous
hm -hematitic
si - silicious
py - pyritic breccia (bx)
foliated
fractured
schistosbrecciated (bd) e
Legend:
DD92GE50A
PD91GE25
DD92GE48
bd
bd
DD92GE53 DD92GE54
DD92GE58
DD92GE57A
& schist
bd
cs h
& M U v ns bx G ei
fr sch
& MGU veins
i & MGU ven s
& s hist c
cs h
bd & Mt Gee Unit
& MGU
veining
& MGU
veining
bd
& granite
si bd
bd
W E
DD92GE47
DD92GE49
PD91GE26
PD91GE30
PD91GE32
PD91GE34
PD92GE40
PD92GE41
PD92GE43
DD92GE39
DD92GE50a
PD91GE31
DD92GE54
PD92GE42
DD92GE52
PD91GE35 DD92GE51
DD92GE57a
DD92GE58
DD91GE37
DD92GE53 DD92GE46a
DD92GE38
DD91GE33
D91GE2 B 5
2D G48 D9 E
339000 340000 341000 342000
Mt Gee
6654000
6655000
6656000
Section line
Marathon Resources Ltd - ASX Release 2-8-05
Scale 1:1000
Figure 4. Uranium (U3O8) Distribution and
Grade Variability, Mt Gee Deposit.
Based on Exoil Drill Hole Data
SW NE
MG 90
(535)
[m]
[m]
6,10
16,76
U 0 500 1000 3O8[ppm]
MG 29a
(524)
[m] 36,27
[m]44,81
U O [ppm] 0 500 1000 1500 2000 3 8
MG 70
(534)
[m] 82,30
80,77
[m]76,20
500 1000 U O [ppm] 3 8 0
MG 81a
(537)
[m] 108,20
97,54
94,49
91,44
67,06
65,53
33,53
32,00
28,96
[m] 27,43
U O [ppm] 3 8 0 500 1000
U O [ppm] 0 500 1000 1500 2000 3 8
MG 71
(548)
99,67
100,89
104,85
[m]
[m]
U O [ppm] 0 500 1000 1500 2000 3 8
3500
Finished in Ore
Finished in Ore
Finished in Ore
Finished in Ore
Finished in Ore
550m RL
450m RL
Marathon Resources Ltd - ASX Release 2-8-05
Marathon Resources Ltd - ASX Release 2-8-05
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817 818 810 809 758 732 806 718 531 519 500 576 559 521 562 569 610 566 608 652 681 690 750 756 765 775 784
836 815 811 806 756 727 791 714 719 538 515 518 524 500 531 538 581 551 598 633 671 733 734 742 755 771 770
842 836 816 807 771 740 718 742 716 562 566 524 427 473 490 515 554 534 582 610 713 707 710 722 742 757 772
851 844 833 812 772 739 716 768 714 723 591 541 452 424 409 476 519 523 571 593 685 677 682 698 723 749 772
920 855 844 845 799 743 718 728 713 750 631 575 463 422 370 405 447 498 570 690 658 648 654 669 694 726 749
920 931 859 838 839 787 724 739 796 766 780 608 487 421 356 402 424 462 589 690 656 637 636 648 669 697 719
917 932 939 865 858 832 763 764 783 790 798 658 508 440 402 430 464 514 571 617 659 628 620 625 649 673 695
910 928 948 897 929 859 801 850 863 857 808 668 503 438 421 453 526 575 621 663 656 608 584 614 633 655 675
898 922 961 964 980 925 904 994 965 848 859 654 485 443 411 455 572 650 694 682 659 614 590 610 625 643 661
875 903 938 988 1004 1039 976 881 987 943 866 618 584 464 443 494 588 653 691 682 672 629 605 595 623 637 652
825 833 867 945 997 1084 1016 929 976 999 804 617 609 518 522 550 615 654 686 682 679 649 618 605 624 634 647 661
794 791 847 882 968 1033 1009 956 939 991 952 579 648 672 585 639 626 674 684 680 666 659 638 623 607 637 649
785 817 814 863 976 980 1047 1022 950 1031 1020 742 685 646 641 678 673 678 681 676 663 666 647 632 624 645 652
820 823 815 867 926 971 971 1045 835 819 869 663 669 621 639 654 655 670 673 668 657 642 656 643 636 635 669
829 811 819 872 922 963 847 816 803 789 785 669 684 669 656 657 655 657 661 657 648 634 664 653 647 646 680
815 818 825 878 783 821 811 782 754 757 758 667 661 679 672 644 645 656 647 644 636 624 608 662 657 656 658
823 825 733 758 764 797 783 753 734 725 733 665 661 685 699 665 636 644 646 629 622 611 596 670 666 665 667
831 731 728 749 749 781 765 729 711 689 716 658 662 691 704 664 626 632 633 614 607 596 581 565 673 674 676 - cut-off grade: 500 ppm
1
858 2
3
4
Figure 6A. U3O8 content [ppm], resource of U3O8 >500 ppm; (block and point kriging: 50x50 m).
1 - limit of the estimation area, 2 - estimation block; mean U3O8 content in the block (block kriging,
50x50 m), 3 - area excluded from the resource estimation, 4 – U3O8 content contours (point kriging, 50x50 m)
PD91GE25
PD 1G 3 9 E 1
DD91GE33
PD91GE35
DD91GE37
DD92GE38
DD92GE47
DD92GE48
DD92GE49
DD92GE46A
DD92GE51
DD92GE52
DD92GE53
DD92GE54
DD92GE57A
DD92GE58
12
13a
14a 20a
23
29a
37a
55
56
70
71
73
75
81a
83
84
87
89
90
92
93
95 94
96 100
102 101
103
105 106
DD92GE50A
38b
0 100 200
Inferred Resource Area
U3O8 = 730 ppm Average Grade
q = 43.9 kg/m
Q = 24808 tonnes
(Incl Exoil Area)
U O = 937 ppm Average Grade 3 8
q = 49.2 kg/m2
Q = 3760 tonnes
U3O8 - cut-off grade: 500 [ppm]
1
2
3
4
Figure 6B. Mt Gee deposit, U3O8 parameters and resources.
1 - Resource area, 2 - Exoil area, 3 - Drill holes with >500ppm U3O8 content, 4 - Drill holes with 300-500 ppm
U3O8 content, q - accumulation index U3O8 kg/m2, Q – resources.
U O 3 8
Indicated Resource Area
2
Marathon Resources Ltd - ASX Release 2-8-05
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Figure 7A. Contour map of orebody thickness [m] for U3O8 >500 ppm (point kriging: 50x50 m).
1 - Limit of estimation area, 2 - Area excluded from the resource estimation, 3 – Thickness contour lines (point
kriging, 50x50 m)
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21.8 25.9 26.1 27.2 29.3 37.6 62.1 65 47.6 48.3 48.8 46.7 45.3 40.7 42.5 40.2 48.9 26.5 26.5 33 35.4 38.3 48.1 50.8 53.9 56.9 59.7
17.9 22 26 27.1 29.1 37.5 60.8 64.6 66.2 49.4 50 61.1 44.5 41.9 43.8 41.2 49.5 27.7 27.8 26 35.4 45.6 47.8 50.6 53.7 56.9 55.6
18.1 18.1 25.8 26.9 35.5 43 38 62.8 66.3 50.6 63.6 62.3 49.2 43.2 45 46.2 52 29.4 29.6 27.6 44.3 45.5 47.5 50.2 53.3 53.1 55.6
18.3 18.3 23 26.7 35.4 43.2 38.1 64.7 66.6 70.7 65.5 64.1 58.3 53.8 52.8 47.3 52.2 31.7 31.9 29.6 44.6 45.6 47.4 49.9 52.9 52.5 55
27.3 18.5 18.3 23 26.4 43.7 38.4 54.6 67.1 74.8 67.9 66.4 59.5 55.1 53.2 63.3 33.7 29.7 31.9 38 35.9 45.8 47.3 49.5 48.7 51.4 53.8
27 26.6 18.4 22.9 31 43 38.7 56.1 83.6 75.7 77.6 65.2 60.8 55.6 53.6 62.7 39.1 32 34.5 40 37.6 46.2 47.3 49.1 47.4 49.9 52.2
26.6 28 27.6 27.3 31.4 41.8 45.9 57.8 59.1 76.7 78.7 66.8 62.1 56 63 62.2 40.7 33.6 34.3 38.5 39.3 49.7 50.2 48.5 45.7 47.9 50.1
26.3 27.9 28.1 28.4 26.1 42 41.8 66.5 71.4 90.1 79.6 70.8 63.2 57.6 52.2 61.8 43.1 34.9 35.6 39.7 41.2 38.3 35.5 46.6 47.6 49.3 51.3
26.2 27.8 29.7 42.1 49.9 32 37.7 76.3 74.6 77.4 90.8 79.5 62.1 53.6 50.5 38.9 42.2 34.2 36.4 35.9 41.5 38.5 35.7 44.9 45.7 47.1 49
26.1 27.8 29.7 44.5 49.2 49.7 64.7 65.4 83.5 86.9 86.4 66.7 61 51.6 48.6 37.9 35.5 33.2 35.3 35 36.1 38.6 35.8 33.5 44.1 45.3 47
22.3 23.6 26 41 48.9 60.4 53.2 56.9 72.9 73.8 63.3 63 58 49.6 46.8 36.9 34.2 31.9 34.6 34.4 34.9 35.2 35.9 33.6 43.1 44.1 45.6
22 23.2 22.7 45.7 48.5 44.5 66.4 56.6 57 72.7 76.6 51.4 52.8 63.4 45.2 52.8 28.7 32 32.4 32.4 31.9 33.7 32.2 30.9 32.3 41.1 42.6
21.8 21.2 32.1 45 52.5 47.3 63.8 65.3 56.7 73.2 75.3 54.5 36.9 45.5 51.9 51.2 31.5 29.9 30.4 30.4 30.1 32.4 31.2 30.3 29.5 44.9 42
20.2 21 31.8 44.2 49.8 55 47.2 52.6 48.6 46.6 61.5 35.2 30.2 24.9 36.3 30.4 27.5 28.2 28.6 28.7 28.6 28.1 30.5 29.9 29.4 29.2 39.2
20.1 29.7 31.7 43.5 48.7 54.2 38.6 33.5 45.6 45.2 39.3 33.2 33.2 24.8 24.3 29.1 23.8 26.8 27.2 27.4 27.4 27.1 30.2 29.8 29.5 29.5 39.3
28.6 30 31.7 43.2 34.2 36.7 36.3 31.2 40 42.7 36.7 31.6 29.4 24.2 23.5 25.2 22.5 23.6 26.3 26.5 26.5 26.4 26.3 29.9 29.9 30 30.3
29.3 30.4 25.9 32.5 32.4 34.9 34.4 29.3 29.7 40.6 34.7 24.9 28.7 23.9 24.3 25.5 21.7 22.7 23.6 26 26.1 26.1 26.1 30.3 30.4 30.6 31
30 24.9 25.2 31.5 31.2 33.6 33 27.9 28.2 36.2 33.4 24.2 23.3 23.9 24.4 25.6 21.4 22.3 23.1 25.8 25.9 26 26.1 26.1 31.1 31.3 31.UO kg/m2 - cut-off grade 500 ppm 7 3 8
1
38.7 2
3
4
Figure 7B. U3O8 accumulation index [kg/m2], U3O8 >500 ppm (block and point kriging: 50x50 m).
1 - limit of estimation area, 2 - estimation block; mean U3O8 accumulation index in block (block kriging, 50x50 m),
3 - area excluded from the resource estimation, 4 – accumulation index contour lines (point kriging, 50x50 m).
Marathon Resources Ltd - ASX Release 2-8-05
339800 339900 340000 340100 340200 340300 340400 340500 340600 340700 340800 340900 341000 341100 341200
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339800 339900 340000 340100 340200 340300 340400 340500 340600 340700 340800 340900 341000 341100 341200
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1
2
3
Figure 8B. Accumulation index La+Ce kg/m2 within U3O8 >500 ppm limit (point
kriging: 50x50 m).
1 – limit of estimation area, 2 – area excluded from the resource estimation, 3 – accumulation
index contour lines (point kriging, 50x50 m)
Figure 8A. La+Ce content [ppm].
Marathon Resources Ltd - ASX Release 2-8-05