Uranium Resources Plc Regulatory News (URA)

24 Jul 2007 07:01

Uranium Resources PLC24 July 2007 Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration Uranium Resources plc ('Uranium Resources' or 'the Company') Tanzanian Uranium Exploration Update Highlights • Results show strong subsurface uranium mineralisation present• Initial assay results show peak intersections of: o 7 metres at 1,233 ppm U3O8 including 3 metres at 2,607 ppm U3O8 o 7 metres at 549 ppm U3O8 including 4 metres at 843 ppm U3O8 o 6 metres at 507 ppm U3O8 including 2 metres at 1,145 ppm U3O8 o 7 metres at 400 ppm U3O8 including 3 metres at 770 ppm U3O8 o 4 metres at 515 ppm U3O8 including 2 metres at 855 ppm U3O8• Drilling to recommence early August 2007 Uranium Resources, the AIM listed uranium exploration company, has receivedpositive initial assay results from reconnaissance drilling at the Mtonyauranium exploration project in Tanzania. The results are from the first batch ofsamples from the 1,648 metre reverse circulation drilling programme conducted inJune 2007. Uranium Resources director James Pratt said, "These are again highly favourableresults. The initial first pass drilling programme has achieved its aim ofidentifying significant subsurface uranium mineralisation in our Mtonya licenceareas. This coupled with the high grade trenching results provides us with greatencouragement for our future exploration and development programmes. We believethat our area of operation in Tanzania is highly prospective and we hope thatthe remaining results will emphasise this going forward." Shareholders are urged to read the announcement of the company's farm-inpartner, Western Metals Ltd, at www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00741223 which includes a number of diagrams that the directors consider important to gain a proper understanding of this announcement. The diagrams in this announcement will also shortly be available on the Company's website, www.uraniumresources.co.uk. Drilling Results Results to date have shown that strong subsurface mineralisation is present.The drilling has indicated multiple mineralised horizons preferentially hostedin sandstone units frequently at or near contact with mudstone units. This istypical for sandstone hosted roll front style uranium deposits such as theKyelekera deposit in nearby Malawi. The drill section shown in Diagram 3 of Western Metals' announcement shows thatthree mineralised zones are evident above a cut-off grade of 50ppm U3O8 withconsistent intersections within these zones above a 100 ppm U3O8 cut-off. Thepeak intersection of 7 metres at 1,233 ppm U3O8 is located 200 metres from thissection on another drilling profile. Deeper drilling in the future willdetermine if more mineralisation is present below those identified to date.Intersection widths range up to 7 metres, which is encouraging for the economicpotential of the area. Table 1 contains details of drill holes and intersection summaries. Table 1: Intersections greater than 100 ppm U3O8 Hole ID Collar Co-ordinates (WGS84/S36) Intersection East North Depth Width ppm U3O8 from (metres) (metres) MRC002 885604 8831694 0 7 1,233Including 0 3 2,607MRC004 885671 8831736 No significant intersectionsMRC007 885557 8831680 No significant intersectionsMRC010 885753 8831564 9 1 120 12 7 400Including 3 770 25 5 212Including 1 590 38 1 130 40 1 100MRC011 885732 8831556 11 1 390 37 1 210 40 2 220MRC012 885710 8831549 9 7 549Including 4 843 25 5 106 31 2 175 39 4 170MRC013 885683 8831499 17 2 445 40 2 210MRC014 885632 8831446 31 1 290 36 1 170MRC015 885783 8831580 6 6 507Including 2 1145 24 4 515Including 2 855 35 4 305MRC016 885828 8831590 7 1 480 33 1 250MRC017 885805 8831582 5 5 144 27 1 120 33 1 110 35 3 270 Notes on Table 1: Samples have been collected by riffle splitting dry intervals and representativetube sampling of wet intervals. Samples have been analysed by ICP usinglaboratory method ME-ICP61s by ALS Chemex laboratory Perth Australia. Certifiedreference standards and blanks have been included in addition to laboratorycontrol standards. All results are in U3O8 ppm uranium with analysis methodaccuracy quoted at 10 ppm U3O8. Co-ordinates are WGS84/S36 and have beenmeasured by hand held GPS. Programme Strategy Field work in 2006 highlighted many areas of potential with the Henri, Para,Tahbilk, Galway Moysten, and Grandfather anomalies providing initial targets.The June drilling programme tested Henri, Para and Tahbilk and follow-upprogrammes are planned on these and other known targets. Diagram 1 in Western Metals' announcement shows airborne radiometric surveyuranium data for the Mtonya area collected in April 2007. This shows multipleanomalies exist in the area with an exposed anomaly trend greater than 7kilometres by 2 kilometres. Programme Details The drilling programme conducted in June totalled 1,648 metres of RC drillingcomprising of 29 holes. The maximum hole depth was 98 metres with an average of56 metres. Ground conditions limited drilling production rates and a decisionwas made to modify the average planned hole depth from 100 to 50 metres,allowing a greater number of holes to be drilled and an increased area coveredin the planned time frame. Twenty one drill holes were completed on the Henri anomaly where previoustrenching work had yielded strong surface mineralisation. Two drill sections,approximately 200 metres apart, were completed in addition to some isolatedholes off section. At Para, approximately 800 metres south of Henri, two sections of drilling withholes spaced at 100 metres were completed. Each section comprised three drillholes. Two drill holes were completed on the Tahbilk anomaly approximately 700 metresnorth of Henri. All holes were geologically logged on site by Western Metals staff. Samplingwas conducted on one metre intervals using representative sampling techniques.Delays in the arrival of downhole geophysical equipment has postponed thecollection of downhole geophysical data until August. All completed holes havebeen cased to allow the geophysical surveys to be conducted. Samples were submitted to the ALS Chemex laboratory in Tanzania for preparationand then dispatched to their Australian laboratory for analysis. To date results from 11 of the Henri drill holes have been received, withresults of the remaining 18 holes expected in the coming four weeks. Diagram 2 of Western Metals' announcement shows the drill hole collar locationsoverlain on ground radiometric contour of > 15 times background counts per second (cps). The status of each hole in relation to assay results is highlighted. During the drilling programme advanced radiation safety management systems wereimplemented, including training on site for all personnel by an internationalradiation expert, and site rehabilitation was progressed. Future Programme Drilling will recommence in the area in early August with the program planned tofurther test the anomalies and follow up on the initial results. In addition todrilling, field crews will undertake extensive trenching, sampling and mappingon the Grandfather, Tahbilk, Para, and Henri anomalies. Ground scintillometersurveys will be focused on detailing targets within the 7 kilometre trend thathave not been evaluated to date. This information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Dr JosephDrake-Brockman who is a Member of The Australasian Institute of Mining andMetallurgy. Dr Drake-Brockman is employed by Drake-Brockman Geoinfo Pty Ltd. DrDrake-Brockman has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify as a Competent Person as defined in the 2004Edition of the 'Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves'. Dr Drake-Brockman consents to the inclusion in thereport of the matters based on his information in the form and context in whichit appears **ENDS** Contacts: James Pratt Uranium Resources plc Tel: 07747 832 043Ross Warner Uranium Resources plc Tel: 07760 487 769Hugh Warner Uranium Resources plc Tel: +618 9217 3350Hugh Oram Nabarro Wells & Co Ltd Tel: 020 7710 7400Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes to editors Uranium Resources plc is an AIM listed uranium exploration and developmentcompany focused in Southern Africa. The Company has primarily concentrated onexpanding and developing its portfolio of uranium licences in the highlyprospective Karoo Basin in Southern Tanzania where it currently has a landpackage in excess of 7,600 sq km. Recent results have been highly encouragingand indicate the economic potential of the region. This information is provided by RNS The company news service from the London Stock Exchange