Marmota Doubles Down on Greenewood Gold Discovery with Expanded Drilling Program
Marmota Limited (ASX: MEU) has significantly expanded its maiden drilling program at the Greenewood gold discovery, increasing from the initially planned 10,000m to approximately 12,500m across 139 holes, up from the original 127 planned holes.
Accelerating Gold Exploration Strategy with Expanded Program
Marmota's maiden drilling program at Greenewood is progressing exceptionally well, with 61 holes already completed for a total of 5,108m drilled in July. The drilling team is currently averaging an impressive 284m per day, with the program expected to continue for another 4-5 weeks.
The expanded program represents Marmota's first drilling at Greenewood since 2018 and significantly advances the company's Gawler Gold project ambitions. With this expansion, Marmota will more than double the total number of RC holes ever drilled at the Greenewood site.
"Marmota's Gawler gold project is progressing beautifully. As our flagship Aurora Tank gold deposit progresses through production-related studies, we are delighted to carry out our maiden program at the nearby Greenewood gold deposit. Marmota is developing a pipeline of adjacent gold deposits, as we rapidly grow and expand our Gawler gold project," said Dr. Colin Rose, Marmota's Executive Chairman.
Greenewood: A Strategic Addition to Marmota's Gold Portfolio
The Greenewood gold discovery forms part of the new Golden Moon JV (Marmota 90% ownership) and is strategically located just 35km northwest of Marmota's flagship Aurora Tank gold deposit and approximately 30km northeast of the Challenger Gold mine.
What makes Greenewood particularly interesting is its substantial 2km strike length when combined with the adjacent Mainwood deposit. Despite this promising geological feature, Greenewood has seen minimal historical drilling compared to Aurora Tank:
| Drilling Type | Number of Holes | Total Meters |
|---|---|---|
| RAB | 12 | 372m |
| RC | 109 | 7,109m |
| Diamond | 5 | 764m |
| Total | 126 | 8,245m |
Marmota's expanded program of 139 new RC holes will substantially increase the exploration data available, potentially unlocking significant value that was previously overlooked when gold prices were much lower. The company notes that many pre-existing holes at Greenewood appear to have been drilled too shallow to effectively test the mineralisation.
Understanding Strike Length in Gold Exploration
In gold exploration, "strike length" refers to the horizontal distance along which a mineral deposit extends. The 2km strike length of the Greenewood/Mainwood system represents a significant geological feature that indicates potential for substantial mineralisation.
Strike length is crucial for investors to understand because it directly impacts the potential size of a mineral resource. Longer strike lengths can translate to larger potential resources, assuming consistent mineralisation along the strike. For Marmota, the 2km strike at Greenewood/Mainwood provides an extensive target area for exploration and potential resource development.
Importantly, the current maiden drilling program is focused only on the Greenewood zone, suggesting significant future exploration potential in the Mainwood section that remains untested by Marmota.
Favourable Gold Market Conditions Enhancing Project Economics
Marmota is executing its expanded drilling program against a backdrop of exceptionally strong gold prices. The company notes that the current gold price of approximately A$5,200/oz is roughly three times the gold price when the deposit was last drilled in 2018 (~A$1,600/oz).
This dramatic increase in gold prices substantially improves the potential economics of any future mining operation at Greenewood, potentially making lower-grade mineralisation economically viable and enhancing the overall project value.
Building a Gold Production Hub in the Gawler Craton
Marmota's Gawler Gold project consists of several gold deposits strategically positioned in proximity to each other:
- Aurora Tank gold discovery (100% owned) – Marmota's flagship project featuring bonanza gold grades near surface and excellent metallurgical recoveries
- Golden Moon JV deposits (including Greenewood) – Located near Aurora Tank, creating potential economies of scope and scale
- WGCJV gold deposits at Monsoon and Typhoon (MEU: 100% of gold rights)
This cluster of gold assets positions Marmota to potentially develop a significant gold production hub in the Gawler Craton region of South Australia, with Aurora Tank likely serving as the central processing facility.
Why Investors Should Follow Marmota's Development
Marmota presents a compelling investment case for gold-focused investors for several key reasons:
- Expanding Resource Base – The company is systematically growing its gold footprint through strategic exploration across multiple deposits
- Favourable Gold Market – Operations are being advanced during a period of historically high gold prices
- Infrastructure Synergies – The proximity of multiple deposits creates potential for shared infrastructure and processing facilities
- Exploration Upside – The Gawler Craton remains significantly underexplored with potential for additional discoveries
- Clear Development Pipeline – With Aurora Tank advancing toward production studies while exploration continues at Greenewood, the company has established a clear path to potential production
Marmota is methodically building a pipeline of gold deposits that could potentially support a significant production operation, with Aurora Tank at the centre and satellite deposits like Greenewood providing additional feed. The current expanded drilling program at Greenewood represents a key step in advancing this multi-deposit strategy.
As results from the expanded Greenewood drilling program begin to emerge in the coming months, investors will gain greater insight into the potential scale and quality of this strategic gold asset.
Want to Explore Marmota's Expanding Gold Portfolio?
Discover more about Marmota's strategic expansion at Greenewood and their growing pipeline of gold deposits in South Australia's Gawler Craton. With 139 holes planned and gold prices at A$5,200/oz, Marmota is rapidly advancing their multi-deposit strategy. For detailed investor information about their gold projects and development timeline, visit Marmota's website today.
