Marmota Ltd receives confidence boost from major rare earth discovery along building boundary, shares

Marmota Ltd (ASX:MEU), which is prospecting for rare earth elements (REE) in South Australia’s Gawler craton, is buoyed by the announcement by neighboring prospector Petratherm Ltd (ASX:PTR) of a major discovery of great value ETR on La porte de Marmota.

There are several reasons why Marmota shareholders should take note of this announcement, including the fact that the rare earth discovery is directly on the border with Marmota’s considerable holdings in the region.

Investors reacted positively, sending shares up to 25% higher at $0.06, a new 12-month high.

Significant new Petratherm rare earth assays (ASX:PTR) adjacent to Marmota buildings.

Sampling stopped at the boundary – mineralization would not have

Marmota considers it geologically “highly unlikely” that mineralization in an ionic clay system would suddenly stop at the boundary of the tenement.

Indeed, it is geologically very likely that mineralization will continue across the concession boundary.

The Petratherm samples yielded high-value magnetic REE grades, and the most impressive of the finds – 1,015 parts per million (ppm) – is found just on the Marmota border. Marmota is by far the largest tenure holder in the northern Gawler craton.

The neighboring owner noted in its announcement that the discovery redefines the mineral prospectivity of the Gawler North Craton and that the newly defined REE zones were found to be regionally extensive, spanning several kilometres.

He added that “there is substantial upside potential for additional new REE discoveries to be made in the surrounding unexplored tenure.”

Discovery arouses enthusiasm

Petratherm completed a program of 993 shallow holes (usually only 15 meters deep), of which 44 were subjected to full REE analysis and returned highly anomalous values.

Some of the highest REE intersections occurred at the edge of the Marmota claim – hole 590: 3 meters at 2,701 ppm TREO.

This boundary hole also gave the highest of the high value magnet results.

Marmota plans to initiate a new exploration program for REE mineralization with immediate targets beginning at discovery on the edge of the Marmota concession.

The company is seeking to put in place the necessary approvals to carry out this work.

Obvious drilling targets for Marmota

Important rare earth intersections are remarkably close to the surface, only 12 meters from the surface in the ionic clays.

This means that exploration costs are low, large areas of land can be tested quickly, and any defined deposit would potentially have low exploitation costs.

There are already two areas where significant intersections have been made along and/or at the boundary of Marmota’s buildings, namely the Petratherm’s Hole 590 area at the boundary of Marmota EL 6040 and the Petratherm 2 area adjacent to Marmota EL 6083.

Wider implications

This is the first time that significant rare earths have been discovered in the northern Gawler craton.

Petratherm states that “the results provide strong evidence that the North Gawler craton in South Australia is fertile for rare earth mineralization hosted by ionic clay”.

He goes on to note that REE discoveries in clays show similarities and comparable grades to ion-absorbing REE deposits found in China, which is currently the world’s largest supplier.

Marmota’s review of the Petratherm results indicates that all of the anomaly and mineralization to date is hosted by the Archean to Early Paleoproterozoic Mulgathing Complex, which is also host to the most significant gold mineralization in the area.

Marmota is fortunate to hold ownership of the majority of the vast area of ​​metamorphic rocks in the Mulgathing Complex, which extends approximately 120 kilometers west of the new discoveries.