Introducing the Greenewood Discovery: A High-Grade Gold Opportunity
Marmota Limited (ASX:MEU) has revealed promising details about its Greenewood Gold Project, located 35km northwest of the company's flagship Aurora Tank project. As part of Marmota's Gawler Gold project portfolio, this represents the first comprehensive disclosure on this high-potential asset.
The Greenewood deposit, in which Marmota holds a substantial 90% ownership through its wholly-owned subsidiary Half Moon Pty Ltd, has already demonstrated impressive high-grade gold intersections near the surface, despite limited exploration to date:
- 1m @ 53 g/t gold from 30m depth
- 1m @ 37 g/t gold from 48m depth
- 1m @ 29 g/t gold from 31m depth
- 1m @ 23 g/t gold from 24m depth
- 1m @ 23 g/t gold from 23m depth
- 1m @ 21 g/t gold from 41m depth
What makes this announcement particularly significant is that Greenewood has seen minimal exploration, with only about 7,000 metres of Reverse Circulation (RC) drilling completed since its discovery in 2016.
The Golden Arc: Strategic Position in a Prolific Gold Region
Greenewood forms a critical component of what Marmota describes as the "Arc of Six" gold deposits in the northwestern Gawler Craton. These deposits follow the flanks of a major 'Y'-shaped gravity anomaly and include:
- The Challenger mine (historical production of over 1 million ounces)
- Mainwood
- Greenewood
- Campfire Bore
- Golf Bore
- Aurora Tank
Marmota controls all five unmined deposits in this arc, either through 100% or 90% ownership. This strategic consolidation creates compelling economies of scale, particularly given Greenewood's proximity to Aurora Tank (35km) and the former Challenger gold mine (30km).
"Of the Arc of Six, Greenewood may have the highest growth potential due to the presence of so many open mineralised trends and limited previous work," notes Dr. Kevin Wills, who produced the comprehensive report on the deposit and designed the programs that led to the Challenger gold mine discovery.
Understanding Structural Gold Deposits: Why Geometry Matters
What are structural gold deposits?
Structural gold deposits form along geological features such as faults, fractures, or shear zones that serve as conduits for mineral-rich fluids. These fluids transport and deposit gold and other minerals in specific patterns controlled by the underlying rock structure.
The gold deposits in Marmota's "Golden Arc" share important geological characteristics. They are hosted in northeast-trending, moderate to steeply dipping structures that extend to depth and typically contain high-grade gold mineralisation. This geological pattern creates predictable geometries that, once understood, can guide efficient exploration.
Unlike many gold discoveries that begin with surface anomalies, Greenewood was discovered through RC drilling that followed up on anomalous RAB drilling results from 2003. This different discovery method potentially indicates why the deposit remained underexplored for so long.
The presence of multiple high-grade intersections along a 500-metre strike length that remains open in all directions suggests excellent potential for resource expansion. This characteristic is typical of structural gold deposits, which often form linear or corridor-like mineralised zones.
| Drilling Statistics at Greenewood | |
|---|---|
| Drilling Type | Meterage |
| RAB (12 holes) | 372m |
| RC (109 holes) | 7,109m |
| Diamond (5 holes) | 764m |
| Total: 126 holes | 8,245m |
Untapped Potential: Why Greenewood Could Be a Game-Changer
Several factors highlight Greenewood's exceptional growth potential:
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Limited exploration: With only 7,000m of RC drilling (compared to 70,000m at Aurora Tank), Greenewood remains largely unexplored. The comparison with more advanced projects in the region suggests significant scope for additional discoveries.
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Open mineralisation: The current 500m mineralised strike length remains open in all directions. This suggests that the known deposit represents only a portion of the potential resource.
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Shallow deposits: All reported resources are close to surface (within 100m), making them potentially amenable to low-cost open-pit mining. This could significantly improve project economics.
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Economic environment: The current gold price (
A$5,000/oz) is almost triple what it was when initial resource work was completed in 2018 (A$1,680/oz). This price increase substantially improves the economic viability of developing the deposit.
According to the comprehensive report produced by Dr. Kevin Wills, Greenewood may have "the highest growth potential due to the presence of so many open mineralised trends and limited previous work." This assessment is particularly noteworthy given Dr. Wills' experience in the region, including his role in designing the programs that led to the discovery of the million-ounce Challenger gold mine.
Strategic Development Timeline
Marmota has indicated that development programs to expand the resource at Greenewood are being finalised, with updates expected in the coming weeks. This announcement follows Marmota's April 9, 2024 disclosure regarding the Golden Moon JV, in which Greenewood is a key asset.
The company has highlighted that Greenewood's exploration was prematurely terminated for corporate reasons when previous owner Tyranna shifted focus from gold to pursue lithium opportunities in Angola. Marmota subsequently acquired these South Australian gold assets in 2020/2021.
This history of interrupted exploration efforts suggests that Greenewood's potential may have been overlooked during previous ownership, creating an opportunity for Marmota to unlock significant value through a more systematic and sustained exploration approach.
Investment Thesis: Multiple Value Drivers
Marmota presents a compelling investment case based on several key factors:
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Resource growth potential: The limited drilling at Greenewood (the least explored of the "Arc of Six" deposits) suggests significant room for resource expansion. With only 7,000 metres of RC drilling completed to date, compared to 70,000 metres at Aurora Tank, there is substantial opportunity to increase the resource base.
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Strategic consolidation: Marmota's control of multiple gold deposits in close proximity creates operational synergies and development optionality. The company owns all five unmined deposits in the "Golden Arc," either through 100% or 90% ownership.
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Favourable gold market: With gold prices at record highs, the economics of developing these deposits continues to improve. Current gold prices (
A$5,000/oz) are almost triple what they were when initial resource work was completed in 2018 (A$1,680/oz). -
Near-surface mineralisation: The shallow nature of the gold resources enhances the potential for low-cost extraction methods. All reported resources at Greenewood are close to surface (within 100m) and potentially amenable to low-cost open-pit mining.
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Experienced leadership: The involvement of proven geologists like Dr. Kevin Wills, who has previous discovery success in the region, strengthens the technical credibility. Dr. Wills designed the programs that led to the discovery of the Challenger gold mine, which produced over one million ounces of gold.
Why Investors Should Follow Marmota
Greenewood represents just one component of Marmota's broader gold strategy in the Gawler Craton. With five gold deposits under its control, strong technical leadership, and multiple near-term catalysts, Marmota is strategically positioned to benefit from the current gold price environment.
The company's flagship Aurora Tank project features exceptional gold grades, strong metallurgical recoveries, and potential for low-cost, low-capex production. Greenewood, with its high-grade intercepts and substantial growth potential, could significantly enhance Marmota's overall resource base.
For investors seeking exposure to advanced gold exploration with multiple development pathways, Marmota Ltd Greenewood Gold Project offers a compelling combination of existing high-grade resources, substantial growth potential, and strategic asset positioning in a proven gold district.
The comprehensive report on Greenewood, developed over more than five months by Dr. Kevin Wills, incorporates all previous work on the deposit and constitutes hundreds of pages of analysis, cross sections, and scope for future work. This detailed technical foundation provides a solid basis for Marmota's planned exploration programs.
With drilling programs being finalised and updates expected in the coming weeks, near-term catalysts should provide additional clarity on Greenewood's true potential and Marmota's development strategy for this promising asset.
Ready to Discover Marmota's Golden Opportunity?
To learn more about Marmota Limited's high-grade Greenewood Gold Project and its strategic position within the "Arc of Six" gold deposits, visit www.marmota.com.au. With impressive gold intersections and significant untapped potential, Marmota (ASX:MEU) offers investors a compelling opportunity in today's favourable gold market. Don't miss out on this emerging gold story in South Australia's prolific Gawler Craton.
