Microsoft Word - Draft ASX release_Widgety drilling results - 01022016 final
ASX ANNOUNCEMENT 1 February 2016
Widgety Drilling Results
Marmota Energy Limited (ASX: MEU) ("Marmota")
Key Points
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Assay results from the Widgety drilling program have been received
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No significant gold occurrences were intersected at Widgety
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Gold occurrences were associated with silver and quartz veining
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Assay results from the company's priority Westpoint Hill gold-in-calcrete program are expected soon, in early February 2016.
Background
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Widgety prospect is located 50km SE of the Challenger gold mine [ see Figure 5 ].
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In November 2015, a geophysicist's review identified multiple key target areas for the drilling program, based on ground magnetic and gravity surveys.
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In December, Marmota completed a RC drilling program with 1,652 metres drilled, testing 3 areas of interest identified in the geophysicist review. [ see Figures 1 and 2 ]
Drilling Results
The Widgety drilling program consisted of 29 angled RC holes with lengths varying from 50 to 102 metres [ see Table 1 for details of drill collar locations and other details and Figure 3 for a map view of locations ].
29 holes were drilled to test 3 separate areas [ see Figure 2 below ]:
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Mag anomaly to the North (5 holes), and mag anomaly to the South (2 holes):
the program to both the north and south areas did not have the benefit of refinement via gold-in-calcrete testing, as the Marmota infill calcrete sampling program did not extend to either of these areas.
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Central zone: this area was the subject of calcrete programs; that program yielded a number of clusters of gold-in-calcrete anomalies exceeding 20ppb, but no sharply defined 'hot zone'.
Results: 3 metre composite samples were assayed for 49 elements including gold, with the focus being on the gold occurrences. The best occurrence was 70ppb Au in hole WRC0009 at 30-33 metres. Details of gold occurrences greater than 20ppb are set out in Table 2 below.
Early analysis of the assay results coupled with the geological interpretations of the drilling chips has shown gold associated with smoky quartz chips. In Traverse 1 (WRC0001 - WRC0007) there were areas of elevated gold correlating with increased quartz fragment size and frequency indicating gold association with quartz veining. Low order silver readings
accompany the gold and quartz veining and in some holes without any gold occurrences. Silver occurs as a halo or indicator mineral. See Figure 3 below for a cross section of Traverse 1 matched to the gold in calcrete occurrences.
More technical details regarding the drilling program are set out in the attached JORC Code Table 1 report.
Summary
Marmota's Widgety program has served its purpose of testing and providing direction, and has been carried out at relatively low cost. While the source of the anomaly at Widgety has not been located, the Board considers that Marmota has far better opportunities to pursue. In particular, the Board looks forward to the release of assay results from the priority project at Westpoint Hill, due soon (early February).
Figure 1: Marmota gold-in-calcrete sampling Figure 2: Higher-resolution magnetic survey highlighted
additional targets, to both the North and South
Figure 3: Drill hole locations and Traverses shown against the higher-resolution magnetic survey and gold in calcrete anomalies
Figure 4:Cross section of Traverse 1 showing gold occurrences and lithology encountered by the drill holes, mapped against the gold in calcrete sampling results across the Traverse