Exposed - Marathon’s Major Fault Lines

Marathon dumped more than 10,000 bags of radioactive ore during its violation of the Arkaroola Wilderness Sanctuary. At 5kgs/bag, that’s more than 50 tonnes of radioactive waste. Where is it? Marathon has admitted a publicly proven record of inadequate management. There must be a full, open and public inquiry into the whereabouts and management of this lethal material.

On 9 May 2007 Marathon itself said.

“To date analytical results have been received for slightly over 5000 samples with (sic) results of another 4000 samples remain outstanding from the drilling program. Ongoing laboratory analyses will be released as soon as practical.” Nothing about what they did with the material.
Source: 090507_3rdDrillUpdateMtGeeCrct.pdf, from Marathon’s own website.

Eleven bags here, now where’s the rest, the other 9,989?

Marathon’s drilling and despoliation of the Heritage listed Mt Gee in the middle of the Arkaroola Wilderness Sanctuary occurred both before and after these dates. Rare fluorite crystal deposits, supposed to have been protected by the Heritage listing, were gutted. Untold damage was done to the surrounding area. More than 50 tonnes of ore bearing uranium oxide (yellow cake), previously locked up in deposits many metres underground, was brought to the surface as dust from diamond drilling and dumped next to the famed Ridgetop Tour in the middle of Arkaroola Wilderness Sanctuary.

The laws we have, state and federal, have not been properly policed, thanks to the incompetence of state and federal officials. It took a tip off, prominently publicised in the Sunday Mail, before they would act. Where are their reports? They must be made public.

One of Marathon’s principal shareholders is in court on corruption charges in Queensland. Why is this company’s interest getting an easy ride down here? Why did the SA Minister open the Marathon offices in July last year, and then delay a decision about mining when he had more than sufficient reason – 10,000 of them, to cancel the license altogether? Stronger laws to ban mining must be passed to protect this area from these environmental vandals, for once and for all, and the laws we do have must be properly policed.

Significant Wilderness, Insignificant and Dangerous Deposit

It is not as though it is a significant deposit, but it is a significant Wilderness area, on the national heritage. Marathon board members, many of whom held large portfolios acquired at favourable rates, are fond of talking up this deposit as “100% owned” and as “one of the most significant”.

Well, they are wrong on both counts. Aboriginal people claim Native Title to the area, an area of deep and continuing spiritual significance. Arkaroola holds the pastoral lease, and works with Aboriginal people on land management, which is more than can be said for Marathon.

Marathon never held the exploration license in the first place. Several other companies did, most of them large, recognised and competent mining companies. Wisely, they walked away when they realised the deposit itself was as nothing compared to other deposits and the significance of the area to its traditional owners.

The license that Marathon uses was latterly acquired by a group called Bonanza Gold (see Bonanza Boys). Marathon took that company over, at a cost, and taking on at least two of their directors. They still owe royalties to IMG, the successor to Goldstream which otherwise walked away as well.

The facts are that this small area has been pincushioned with drill holes many times over the last thirty or forty years – more than 796 of them totalling more than 80 kilometres. The geology is well known.

And, as uranium oxide, it is just not worth it. The site might hold about 00.37% of Australia’s known reserves. Most of Mt Gee’s is low grade in hard rock with a seismically active bottom known to be at boiling point.

There are many, larger, high grade deposits accessible in more stable and less significant areas.

Then why the fuss?

There’s money to be made, but not necessarily in mining the deposit. Marathon never paid a dividend on its 60+ million shares. It probably never will. But, if informed people are clever enough to manipulate the market price, then there’s money to be made.

Marathon’s shares topped $6 less than a year ago. Some Directors held earlier options at 20 cents. Even now, with the low around $1:22, that’s not a bad margin for an option costing 20 cents.



Prices 13 February, 2008

Someone’s making money out of this, as the share charts show. More than 436,000 shares traded when it’s usually less than a quarter of that. To the uninitiated, this might look like a panic, and to some extent it is. But, money can be made if the price is right, and for some few it has been. For many, it’s a right royal rip off.

Marathon’s long term share history makes more interesting reading. Try this site (http://www.tradingroom.com.au/apps/qt/quote.ac?section=chart&code=MTN ) to see the incidence of large trades, then check when and what announcements have been made. Someone’s being suckered, and that someone includes this state government.

Share price graph – heading south


Recently, Marathon discovered that it could not raise $27m on the open market. The market was wary, and that was before drilling was suspended. The question must be asked – did they ever have any real intention of mining, or was it just another way for some clever players to make money, playing the market?

Either way, it makes no difference. This is a sanctuary, and there are those who will protect it even if Miner Mike and our other politicians won’t. Doesn’t matter how hard it is, or how long it takes, this place will be protected. Let’s see the end of this charade. Act now. Ban the mining of Mt Gee.