Uranium Resources Plc Regulatory News (URA)

23 Nov 2006 08:42

Uranium Resources PLC23 November 2006 Uranium Resources plc (URA) Acquisition of additional tenements in Karoo Basin Highlights • Uranium Resources to acquire a 42.5% interest in tenements in the prospective Karoo Basin sediments in Tanzania. • The tenements cover 3,774 km2 and increase the Company's total tenement holding in Tanzania to 7,640 km2. The new tenements build Uranium Resources' strong position as one of the largest exploration land holders in the Karoo Basin in southern Tanzania. Summary Uranium Resources is pleased to announce that it has agreed to acquireadditional uranium exploration tenements in the Karoo Basin in Tanzania. Thenew tenements cover a total area of 3,744 km2 and bring the Company's totaltenement holding in Tanzania to 7,640 km2. The acquisition is conditional onthe tenements being granted by the issuing authority in Tanzania. Uranium Resources and Western Metals Ltd (ASX:WMT; www.westernmetals.com.au)have entered into a joint venture to explore the new tenements. UraniumResources and Western Metals each hold a 42.5% interest in the new tenementswith the remaining 15% held by Tanzanian interests. Western Metals will be theproject manager for the exploration with both Uranium Resources and WesternMetals funding exploration on an equal basis. The Tanzanian interests remainfree carried until the commencement of feasibility on any potential miningproject. The tenements were selected because they overlie interpreted prospective KarooBasin sediments and each tenement contains radiometric anomalies defined byhistoric airborne surveys. The Karoo Basin hosts known uranium depositsthroughout southern Africa including Paladin Resources' Kayelekera depositlocated 250 km to the west of the joint venture area. Initial work on the newtenement area will include detailed interpretation of historic radiometric dataand generating targets for field programs. Recent exploration conducted on behalf of Uranium Resources on the Henri anomalyin the Karoo Basin of southern Tanzania, has identified high grade uraniummineralisation in trenches with uranium assay results ranging from 17 ppm U to7,232 ppm U (0.7% U)*. Further field work is presently being conducted in the Henri area and furtherresults will be announced as they become available. *All results are in ppm uranium with analysis method accuracy quoted at + 100ppm U. For conversion to U3O8 the uranium ppm values should be multiplied by1.18. Contacts: James Pratt Uranium Resources plc Tel: 07747 832 043 Ross Warner Uranium Resources plc Tel: 07760 487 769 Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock Exchange