In the dynamic world of mining, few stories capture the imagination quite like that of Maronan Metals (ASX:MMA). With its promising silver-lead project located in Queensland’s Cloncurry district, Maronan is poised for significant developments in the first half of 2025. As one of Australia’s leading mining journalists, Kristie Batten, highlights in her weekly column for Stockhead, the company is on the brink of exciting catalysts that could reshape its future.
The Maronan Project: A Resource Powerhouse
At the heart of Maronan Metals’ operations lies the Maronan project, which boasts an impressive indicated and inferred resource of 32.1 million tonnes at 6.1% lead and 107 grams per tonne silver. This translates to a staggering 1.96 million tonnes of contained lead and 110.6 million ounces of silver. Richard Carlton, Maronan’s managing director, recently described the project as being situated in “elephant country” for base metal deposits, emphasizing the substantial amount of metal in the ground.
The company is currently concluding its 2024 drilling program, which has involved approximately 10,000 meters of drilling. Carlton has set ambitious goals, aiming to increase the indicated resource from 2.1 million tonnes to closer to 5 million tonnes. A key milestone is expected in March 2025, when Maronan plans to release an updated resource estimate that could significantly enhance its market position.
Scoping Study on the Horizon
Following the resource update, Maronan is gearing up for a scoping study scheduled for the June 2025 quarter. This study will focus on the Starter Zone, a high-grade area measuring 500 meters long and 600 meters deep, located less than 90 meters from the surface. Carlton believes that the proximity to the surface and the high grades are critical factors for establishing a viable mining operation.
The Starter Zone is particularly noteworthy, as it contains about one-third of the project’s total resource and encompasses all of the indicated resource. Early estimates from GBA Capital’s Trent Allen suggest that the project could support underground polymetallic production for over 15 years, with an average silver-equivalent production rate of 13.5 million ounces annually.
Economic Viability and Development Options
While Maronan has yet to finalize its economic projections, Allen’s preliminary financial model anticipates a capital expenditure (capex) of between A$350 million and A$450 million, with operational expenditures (opex) expected to be competitive. The favorable geometry of the orebody presents multiple development options, and the company is considering both a standalone mill and potential toll treatment processing arrangements.
Strategically located just 15 kilometers from AIC Mines’ Eloise copper-gold mine and within proximity to other significant operations, Maronan is well-positioned to leverage existing infrastructure and resources in the region.
The Silver Market: A Promising Landscape
The timing of Maronan’s developments aligns with a broader trend in the silver market. Despite a recent dip, silver has emerged as one of the best-performing commodities of 2024, driven largely by its industrial applications, particularly in solar panel production. The Silver Institute forecasts a silver deficit of approximately 200 million ounces, equivalent to the output of about 20 Cannington mines.
Carlton emphasizes that while Maronan is a polymetallic deposit, the company is promoting it primarily as a silver project due to its high grades. Interestingly, Maronan is currently the third-largest undeveloped silver resource in Australia and boasts the highest-grade silver deposit in the country. Despite this, it trades at an enterprise value to resource multiple of A$13/oz silver equivalent, significantly lower than the peer average of A$95/oz.
Copper-Gold: An Added Advantage
In addition to its lead-silver resource, the Maronan deposit also contains a copper-gold resource of 32.5 million tonnes at 0.84% copper, 0.61g/t gold, and 0.61g/t silver. Recent drill results have shown promising intersections, including a notable hit of 0.9 meters at 4.93% copper and 1.92g/t gold. Metallurgical test work indicates that recoveries of 85-90% are achievable, suggesting that the copper-gold material could be economically viable to mine alongside the higher-grade silver-lead.
Allen projects that copper-gold production could commence around the sixth year of the anticipated 15-year mine life, providing an additional revenue stream for the company.
Conclusion: A Bright Future Ahead
As Maronan Metals approaches critical milestones in 2025, the company is rapidly advancing towards what it describes as “mining ready.” With ongoing technical studies, environmental surveys, and stakeholder engagement, Maronan is laying the groundwork for a successful mining operation.
With the silver market poised for growth and the added advantage of copper-gold resources, Maronan Metals stands out as a compelling opportunity in the small-cap resources sector. As Kristie Batten continues to monitor the movers and shakers in this space, all eyes will be on Maronan as it navigates the exciting developments ahead.
At Stockhead, we strive to provide transparent and insightful coverage of the mining industry. While Maronan Metals is a Stockhead advertiser, this article reflects our commitment to delivering unbiased information to our readers.
English 