Paralana Mineral System (Mt Gee) (Uranium)Marathon's 100% owned Paralana Mineral System (EL 3258) in the Arkaroola region of South Australia's Northern Flinders Ranges is one of the largest uranium mineral systems in Australia.
Marathon has developed a 3D model of this world-class uranium-REE-polymetallic ore system, drawing on the company's in-house tectogenetic analysis and the expertise of consultants from the Economic Geology Centre of the University of Mining and Metallurgy in Krakow, Poland.
Part of the Adelaide Geosyncline, the 11-12 kilometre long Paralana Mineral System contains proven uranium deposits, including the Armchair and Hodgkinson deposits. But the company's focus is on the development of the exciting Mt Gee project and its extensions to the south and east.
A revised resource estimate of the Mt Gee deposit was released on 10 June 2008 as follows:
| Resource Category | Resources Tonnes* | Grade U3O8* | Tonnes U3O8* |
| Indicated | 3.8 Mt | 705 ppm | 2.7 Kt |
| Inferred | 42.3 Mt | 646 ppm | 27.3 Kt |
| Total | 46.1 Mt | 651 ppm | 30.0 Kt |
* At 300 ppm U3O8 cut-off
The Company's revised resource estimate is based on an independent assessment of the resource prepared by Tony Marshall of SMG Consultants Pty Ltd (SMGC).
The SMGC assessment is based on historical drilling by Marathon and others, including the most recent drilling programme of 27 diamond drill holes into the Mt Gee deposit in late 2007 and early 2008.
This revised estimate compared to the previous estimate released in September 2007 of 42.8Mt of mineralisation at 629ppm for 26.9Kt of U3O8 contained, also at a 300ppm U3O8 cut-off.
During the 2006–07 drilling program, a total of 73 holes for 15,251 metres were drilled and this program was completed in March 2007.
The drilling of 44 holes on the western side of Mt Gee commenced on 17/11/2006 and was finished on 5/2/2007; about 7,800m of RC drilling were completed. Drilling was continued at Mt Gee east, with 29 holes for 7,590m being completed by 17/3/2007 when the program ended.
Drilling was continued at Mt Gee east, with 29 holes for 7590m being completed by 17/3/2007 when the program ended.
Marathon has received the final report on the scoping study on Mt Gee conducted by Coffey Mining Pty Ltd (a subsidiary of Coffey International Ltd).
This final report reaffirms the recommendation made in the interim report (the results of which were announced in Marathon's June Quarterly Report) that underground mining is the "best solution" from both an economic and environmental perspective for the Mt Gee uranium deposit.
The final scoping study report takes account of preliminary metallurgical test work results that the Company recently released to the ASX.
The scoping study assessed:
- an operation processing approximately 1.5 million tonnes per annum at 760 ppm U3O8.
- production of about 900 tonnes per annum of U3O8 using conventional atmospheric tank leaching (or slightly less using heap leaching).
- a mine life of 9 years.
Coffey's interim scoping study report assessed a production rate of 1000 tonnes per annum of U3O8. Following preliminary metallurgical test work, Coffey reduced the assumed recovery from atmospheric tank leaching, but did not revise the mining plan, hence the reduction in assumed production rate.
Marathon emphasises that additional metallurgical testing needs to be completed, and further geotechnical data accumulated, before accurate processing and mining conclusions can be reached.
Further, Coffey has recommended investigation of several other processing options (apart from atmospheric tank leaching) in the pre-feasibility study.
Marathon is committed to exploration and mining with minimal environmental and social impact, recognising that its social licence to operate is dependent on doing so.
Marathon looks forward to sharing with investors and the community the generation of wealth from Mt Gee.
