Greenewood Drilling Begins: Can Marmota Capitalize on Surging Gold Prices?
Marmota Limited is set to begin its first-ever drilling program at the Greenewood gold discovery, significantly expanding its Gawler Gold project footprint. The initiative aims to more than double previous drilling efforts, leveraging strong gold prices and strategic JV partnerships.
- Maiden drilling program of 127 RC holes planned at Greenewood
- Program will more than double previous drilling depth and hole count
- Greenewood is part of Golden Moon JV with 90% ownership by Marmota
- Drilling to commence within five days after all permits granted
- Gold price now approximately three times higher than during last drilling in 2018
Greenewood Drilling Program Kicks Off
Marmota Limited (ASX – MEU) is embarking on a pivotal phase for its Gawler Gold project with the commencement of its maiden drilling campaign at the Greenewood gold discovery. The program, consisting of 127 planned reverse circulation (RC) drill holes totaling around 10,000 meters, marks the company’s first drilling activity at Greenewood since 2018. This ambitious effort will more than double the total drilling previously conducted at the site, which had seen limited exploration compared to Marmota’s flagship Aurora Tank deposit.
Strategic Location and Ownership
Greenewood is strategically positioned approximately 35 kilometers northwest of Aurora Tank and about 30 kilometers northeast of the Challenger Gold mine, placing it within a highly prospective gold corridor. The discovery is part of the Golden Moon joint venture, where Marmota holds a commanding 90% stake through its subsidiary Half Moon. Recent ministerial consent for title transfers has cleared the way for this drilling program, underscoring regulatory progress alongside operational readiness.
Favourable Market and Project Dynamics
The timing of this drilling campaign is particularly advantageous given the current gold price environment. At roughly A$5,000 per ounce, gold prices have surged to nearly three times the level seen during the last drilling phase in 2018. This price uplift enhances the economic potential of any discoveries made and supports Marmota’s broader strategy to develop a pipeline of adjacent gold deposits within the Gawler Gold project. The company’s Chairman, Dr Colin Rose, highlighted the synergy between Greenewood and Aurora Tank, noting the potential for economies of scale and streamlined production pathways.
Expanding the Gawler Gold Project
Beyond Greenewood, Marmota’s Gawler Gold project encompasses several key assets, including the 100%-owned Aurora Tank deposit, which has demonstrated impressive gold intersections and metallurgical recoveries. The Golden Moon JV deposits, including Greenewood, complement this portfolio, while additional rights at the WGCJV deposits further diversify the project’s resource base. This integrated approach positions Marmota to capitalize on both exploration upside and potential low-cost, low-capital production opportunities.
Looking Ahead
With the drilling program set to begin imminently, Marmota’s focus will shift to assay results and subsequent resource updates. The expanded drilling footprint at Greenewood could materially enhance the project’s resource inventory, providing a stronger foundation for future development decisions. Investors and analysts will be watching closely for early signs of mineralisation that could validate the company’s growth thesis in the Gawler Craton.
Bottom Line?
Marmota’s maiden Greenewood drilling could redefine its Gawler Gold project’s scale and value amid a robust gold market.
Questions in the middle?
- What initial assay results will reveal about Greenewood’s gold grades and continuity?
- How might expanded drilling impact Marmota’s overall resource estimates and project economics?
- Will the company adjust its development timeline or capital plans based on drilling outcomes?
