POL.L Regulatory News (POL)

13 Aug 2009 11:55



13 August 2009 

Polo Resources Limited ("Polo Resources")

Letlhakane Uranium Project - Bankable Feasibility Study Update

Polo Resources (PRL), the AIM listed mining company with uranium and coal interests in Africa, Australia, Europe and Asia, is pleased to provide the following update released by A-Cap Resources Ltd ("A-Cap" or "the Company"), in which Polo Resources holds a 19.9% interest. 

Neil Herbert, Managing Director of Polo Resources, said: "The Bankable Feasibility Study on the Letlhakane Uranium Project in Botswana is progressing apace with the full programme due to complete during the third quarter of 2010. The project was already subject to a successful scoping study by SRK in 2008 with an Inferred Mineral Resource containing 280 Mt of Ore at a grade of 158 ppm U3O8 for 44,500 tonnes of U3O8 (based on a 100ppm cut-off) and a project designed to exploit the oxide and calcrete portions of that resource with projected cash costs of $US34/lb U3O8. The A$1.7 million drill programme currently underway has the potential to significantly increase size and average grade of the mineral resource and we look forward to the results during the fourth quarter of this year."

Highlights

Test pits show excellent continuity of Calcrete Mineralisation

First phase of Serule West extension drilling complete

Resource Infill drilling at Gorgon North complete

Calcrete hollow stem auger drilling commences

BFS kick-off meeting complete

BFS initial site visit underway.

Summary

A-Cap has recently committed to a Bankable Feasibility Study (BFS) managed by Lycopodium on the Letlhakane Uranium Project. As part of this program extensive exploration and resource infill programs have been planned and are now underway. This drilling will provide additional data to be used in the planned Resource upgrade which is scheduled for the 4th quarter 2009.

In another exciting development, a large scale trenching program with trenches up to 12m deep, has been completed on the Mokobaesi prospect to provide additional material for metallurgical testwork. Initial mapping of the pits shows spectacular development of both calcrete and mudstone-hosted uranium mineralisation.

Additionally A-Cap has commenced a new drilling technique which will provide a high quality sample of the shallow calcrete and mudstone mineralisation at the Mokobaesi prospect. This technique, which is known as Hollow Stem Auger Drilling, achieves excellent recoveries in deeply weathered mineralised zones which are close to the surface and difficult to sample using Reverse Circulation hammer drilling.

The Board of A-Cap is excited about the commencement of both the BFS and the ongoing exploration work that has been planned. The Board believes this exploration will significantly increase the global resource base of the Letlhakane Uranium Project.

Large scale trenching for Metallurgical sampling

As part of the metallurgical sampling required for the commencement of the BFS, A-Cap has excavated four trenches across the Mokobaesi prospect to collect bulk samples. This has allowed A-Cap geologists to observe the geology on an outcrop scale for first time. It has also exposed abundant occurrences of carnotite mineralisation in the trench walls. Collection of several tonnes of bulk sample material will be collected over the coming weeks and dispatched for testwork.

Serule West Extension Drilling

A short program of Reverse Circulation (RC) percussion drilling has been completed on the eastern end of the Serule West Prospect to test intersections encountered in previous exploration. A total of 29 holes for 874m of drilling have been completed and initial down-hole radiometric probe results are encouraging, significant results are shown in table 1.

Table 1 Significant results from Serule West Exploration Drilling, results are based on downhole radiometric probing and uranium grades are expressed as equivalent uranium oxide - eU3O8. All data is appended at the end of the release.

Results of Gorgon Resource Infill Drilling

The final phase of resource infill drilling for the Gorgon area, in preparation for the BFS, has also been completed. The total drill program for Gorgan was 134 holes for 4086m of RC hammer drilling. A map showing the collar locations of the new drilling is presented in Figure 2. Results from this program have previously been reported to the market however a selection of significant intercepts is also repeated below. 

Table 2 Significant results from North Gorgon Resource Infill Drilling, results are based on downhole radiometric probing and uranium grades are expressed as equivalent uranium oxide - eU3O8. All these results have been previously released in the June quarterly report

Commencement of Hollow Stem Auger Drilling at Mokobaesi

A new drilling technique, Hollow Stem Auger (HSA) drilling has commenced over the Mokobaesi calcrete portion of the deposit. This drilling technique collects a continuous core section without the use of high pressure air or drilling muds which may cause a sample bias in the near surface environment where RC sample recoveries have been poor. Initial indications are that this drilling method will be successful at collecting a high quality sample with excellent recovery from the near surface calcretes and mudstones at Mokobaesi. A-Cap technical staff have long felt that the current calcrete Inferred Resource underestimates the grade of the near surface mineralisation due to the combined effects of Uranium disequilibrium and poor sample recoveries from the top few meters of the RC drilling.

BFS Progress

A planning meeting held in Perth and an initial site meeting in Botswana have both been completed. The main issues resolved during these meetings were the appropriate techniques for sample selection and collection for the metallurgical testwork programs. A review of the geological and assay data was conducted and a cut off date for drilling and sampling data for the Resource update was decided.

Upcoming Exploration

Immediately upon completion of the planned metallurgical testwork drilling, A-Cap's exploration focus will return to testing for extensions of known mineralisation in the South Gorgon and Serule West prospect areas. In both cases the exploration teams will be following up high grade intercepts encountered in previous drilling.

A-Cap expects to have two rigs onsite for the bulk of the 2009 field season which will end in December with the onset of the wet season.

Drilling and Sampling Details

All drillholes were radiometrically logged with an A675 -slimline gamma ray probe. The probe has been calibrated at the Pelindaba Calibration facility in South Africa and calibration certification has been provided by Geotron Systems Pty Ltd, a geophysical consultancy based in South Africa. All results reported in this release are derived from downhole radiometric logging. Consequently issues pertaining to possible disequilibrium and uranium mobility should be taken into account when assessing these results. Mineralised intervals logged by radiometric probe are collected and sent for assay at Set Point laboratories in Johannesburg.

All Significant Serule West Drill Results

 Table 3. All significant intercepts from Serule Extension Drilling. Results are based on downhole radiometric probing and are therefore reported as equivalent U3O8. Holes were drilled on NS grid lines and with a 200m spacing.