Marathon gives update on Mt Gee uranium deposit Tuesday , 01 Apr 2008 · ENCOURAGING ASSAY RESULTS FROM MOST RECENT DRILLING PROGRAMS
· DRILLING RESULTS SUPPORT MARATHON'S RESOURCE MODEL
Marathon Resources Limited (ASX: "MTN") is pleased to announce the first assay results from the most recent diamond drilling programs carried out at the Company's Mt Gee uranium deposit since July 2007, with more intensive drilling involving four rigs between November 2007 and February 2008.
The results available to date from these programs include new information which points to a significant extension of known mineralisation at Mt Gee and provide the potential for a major expansion of the uranium resource.
The Mt Gee project, in the northern Flinders Ranges of South Australia, is a part of the Paralana Mineral System, which is a significant uranium-bearing mineral system identified within Marathon's EL3258 (Figure 1).
The Mt Gee project remains one of the largest un-developed uranium deposits in Australia, with excellent exploration potential and good prospects for upgrades/additions to the current resource figure.
In September 2007 Marathon announced a revised resource estimate for the deposit giving an Inferred Resource of 42.8Mt of mineralisation with an average grade of 629 ppm containing 26.9Kt uranium oxide. Within this Inferred Resource a proportion satisfies the Indicated Resource, being 3.1Mt at an average grade of 717 ppm containing 2.2 Kt uranium oxides.
As a result of the revised resource model, Marathon has focused its recent drilling in specific areas of the deposit, and with a view to developing an optimum plan to upgrade a significant portion of the Inferred Resource to Indicated Resource status. Additionally, drilling was focused on investigation of the resource in a zone between Mt Gee West and Mt Gee East
New exploration assay results from both Mt Gee East and Mt Gee West include:
MN091; 188-193m, 5m @ 551ppm U3O8 (0.05% U3O8)
209-215m, 6m @ 661ppm U3O8 (0.07% U3O8)
MN092; 132-137m, 5m @ 619ppm U3O8 (0.06% U3O8)
151-166m, 15m @ 663ppm U3O8 (0.07% U3O8)
183-192m, 9m @ 822ppm U3O8 (0.08% U3O8)
MN093; 181-186m, 5m @ 522ppm U3O8 (0.05% U3O8)
206-213m, 7m @ 1380ppm U3O8 (0.14% U3O8)
MN106A; 22-27m, 5m @ 816ppm U3O8 (0.08% U3O8).
*Minimum width 5m >500ppm U3O8 with maximum 3m interval dilution.
The results from Marathon holes MN091, MN092 and MN093 are especially significant as these holes were in an area not drilled in the past, and they document the extension of the mineralisation approximately 100m to the ESE from the intersection in CRAE drill hole DD92GE038. These new Marathon results also provide additional evidence to previous drill results indicating that the Mt Gee mineralised system is continuous from Mt Gee West to Mt Gee East
Figure 1: EL 3258, The Paralana Mineral System and location of Mt Gee deposit Diamond drilling of eight holes totalling 1422 metres in the Mt Gee West area to obtain geotechnical data, twinning of previous RC drill holes and metallurgical samples was completed during the period. Holes were logged geophysically and analytical results are pending. Samples were also sent for geotechnical test work. Assay results for this portion of the drilling program
*Minimum width 5m >500 ppm U3O8 with maximum 3m internal dilution.
The results in drill hole MN115 are particularly significant as it is positioned within a 302m gap between previous drill holes RC07MN086 and DD92GE051, with the three holes forming the north-eastern reach of drilling, demonstrating that the Mt Gee East mineral system is open to the north and east with potential for major expansion of the resource
Other Updates on Mt Gee
Marathon continues to work closely with PIRSA on developing a suitable resolution for retrieval and disposal of drilling residue buried at Mt Gee. Once a decision has been reached the Company will announce the methodology, and implement rehabilitation as soon as possible. Work is also continuing on the Pre Feasibility Study (PFS) and Environmental Impact Study (EIS). This work commenced in December 2007 and is expected to take 12 to 18 months to complete.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr Allan Younger, full time Chief Geologist of Marathon Resources Ltd and a Member of the Australasian Institute of Mining and Metallurgy. Mr Younger has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking 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. Mr Younger consents to inclusion in the report of these matters based on their information in the form and context in which it appears.
The Mt Gee Mineral Resource Estimate was based on information compiled on behalf of Marathon by Tony Marshall B.Sc (Hons) Uni.Melb., a Member of the AusIMM. Tony Marshall is Principal Geologist with SMGC and a full-time employee of that company. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Tony Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
MEDIA CONTACT:
Belinda Hill Sean Whittington
Corporate Affairs Manager Field Public Relations
Marathon Resources Limited (08) 8234 9555
(08) 8348 3500 (0412) 591 520
(0439) 795 521
Notes to Editor
Marathon is a minerals exploration company focused on the development of Mt Gee, one of Australia's largest undeveloped uranium deposits.
The Mt Gee project is located within the Paralana Mineral System of South Australia, a uranium-rich state which is home to the world's largest uranium deposit at Olympic Dam.
Marathon's portfolio also includes highly prospective copper-gold-uranium properties in the Gawler Craton of South Australia.
The Company has gold and copper-gold projects in other parts of South Australia and western Victoria, including first class copper-gold and base metal (silver-lead-zinc) projects in the Adelaide Geosyncline in South Australia and a prospective copper-gold project in the Moyston Fault Zone in Victoria.
Marathon also has a joint venture with listed uranium explorer UraniumSA Ltd (ASX: USA), in which the company holds a 7% stake; and with Primary Resources Ltd (ASX: PRZ) in the Warburton Project in Western Australia. Marathon listed on the Australian Securities Exchange on 15 March 2005, under the stock code of MTN. www.marathonresources.com.au
LCK Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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