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ASX ANNOUNCEMENT 26 November 2015


DRILLING COMMENCES: Widgety prospect


Marmota Energy Limited (ASX: MEU) ('Marmota')


Background

  • Widgety prospect is located 50km SE of the Challenger gold mine.


    Recent work [see ASX Release: 14 October 2015]:

  • Marmota carried out calcrete sampling via auger drilling on a fine 50m grid, in-filling existing anomalous data.

  • 96 sample locations at Widgety returned strong anomalous gold- in-calcrete assays ≥ 20 ppb (out of 331 samples taken at Widgety)

  • Program identified several anomalous clusters.


    New Key Points

  • New infill ground magnetic and gravity surveys conducted by Marmota during October have highlighted additional interesting anomalies and structural trends at the Widgety prospect, both to the North and South of the calcrete sampling program.

  • Drilling targets have been selected based on the geochemical and geophysical review, expanding the area of potential interest to both the North and South [ see Figures 3 and 4].

  • Drilling at Widgety: commenced

  • 1,600 metres of RC drilling


  • Results expected in early 2016

    Widgety Prospect

    Assay results from Marmota's detailed calcrete sampling program at Widgety indicated a coherent gold anomaly, with consistent results up to 60ppb gold (10ppb is considered anomalous) covering an area 1700m x 1000m

    [ see Figure 1 ].




    Figure 1: Widgety: Detail of gold-in-calcrete anomalism (contoured at 10ppb and 20ppb gold)

    New ground magnetic and gravity surveys: closer spaced

    Pre-existing geophysical data for the target area was only available on a widely-spaced

    regional level. In October, Marmota carried out new focused (closer spaced):

    • ground magnetic survey ( lines at 200 and 100 metre spacing ) and

    • ground gravity survey ( 200m x 200m grid )

… over the Widgety area, to better define drilling targets. The new geophysical data was reviewed by Marmota's consultant geophysicst along with historical drilling data in the area, and Marmota's recent geochemical assay data, to gain a better understanding of the structural geology. The review has identified multiple key target areas for the drilling program to focus on.



Figure 2: Marmota gold-in-calcrete sampling Figure 3: New higher-resolution magnetic survey has

highlighted additional targets, to both the North and South


Over and above the clusters highlighted by Marmota's recent calcrete sampling program, additional target areas have been identified both to the north and the south, and will also be tested by the drilling program. The highlighted areas to the North and South have not been the subject of previous calcrete or other programs.

Drilling location

Figure 4 provides a detail view of the proposed drilling locations. 1


Figure 4: Detail view of proposed drilling program


1 Final drilling locations may vary

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