Uranium Resources Plc Regulatory News (URA)

22 Oct 2007 11:43

Uranium Resources PLC22 October 2007 Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration 22nd October 2007 Uranium Resources plc ("Uranium Resources" or "the Company") New Uranium discovery increases prospectivity of Mtonya region in Tanzania Highlights: • Drilling and trenching at Mtonya identifies new high grade uranium anomalies at Grandfather prospect, 5km north of Henri • Trenching at Grandfather has revealed high grade surface mineralisation over a strike of 1.4km • Uranium mineralisation now continuing over a 7 kilometre trend • Peak trench results include 1.2 metres at 7703ppm U3O8 and 0.8 metres at 1035ppm U3O8 • First drilling at Moysten prospect finds high grade uranium including: o 3m @ 863ppm from U3O8 from 46m o 3m @ 750ppm from U3O8 from 47m o 2m @ 355ppm from U3O8 from 32m • Drilling has recommenced on the project and will continue throughout October • Helicopter supported reconnaissance will start again to continue regional evaluation • Farm-in partner Western Metals to spend A$3.5million on exploration in Tanzania over the next 15 months Uranium Resources Plc, the AIM listed uranium exploration company has identifieda new uranium area on the Grandfather prospect and increased its confidence inpreviously identified anomalous areas, following the receipt of trenchingresults and the first assay results from the August field programme. Theresults have been received for the first 23 holes out of the 40 hole programmeand trench results for 5 of 15 trenches excavated during August. Trenching of the Grandfather prospect has upgraded this prospect to a prioritydrill target for the Company, having delivered high-grade surface mineralisationover a strike of 1.4 kilometres. Further trenching is planned for October tomore closely define this new high grade area. This prospect is expected to bedrilled in 2008 following the construction of an adequate road to establishdrill access. Additionally broad spaced drilling has now tested the Para, Henri and Moystenanomalies, with the latest results continuing to identify widespread sub-surfaceuranium mineralisation for all the prospects. The Moysten prospect area returnedhigh grade results and extends the strike which now covers a circa 7km trend. URA Director James Pratt said, "These results continue to indicate the potentialfor Mtonya to host a significant uranium deposit. Both the trenching anddrilling have yielded exciting results which continue to reinforce ourconfidence level in what is rapidly being recognised as a new uranium district.We are also very pleased that farm-in partner Western Metals has committed toon-going aggressive exploration of the southern Tanzanian projects, with ananticipated exploration expenditure of $A3.5 million over the next 15 months." Drilling and trenching recommenced in early October and will continue for theremainder of the month. Helicopter supported reconnaissance will commence laterin October to evaluate new anomalies in the Mtonya, Ruhuhu and South Selous(formerly Tunduru) project areas. August Trenching Results Summary Five trenches (T23 to T28) at Grandfather were excavated to evaluate highsurface scintillometer readings and anomalous surface grab samples (4.64% U3O8and 0.20% U3O8). The trenches have defined 1.4 kilometres of mineralisationalong the strike of the Grandfather anomaly. This was one of the strongestanomalies based on the historic airborne radiometrics, but distance from thecamp at Henri and river crossings has, up to now, frustrated attempts to locatethe best part of the anomaly on the ground. However, high resolution airborneand surface radiometric surveys completed in June 2007 have lead to thissuccessful trenching programme. The trench locations (T23 to T28) are shown onDiagram 1 on Western metals announcement (www.westernmetals.com.au) and asummary of intervals are contained in Table 2. Sampling Method and Results The trenches were generally excavated to 1.2 metres in depth. Vertical channelswere cut at each 2 metre interval along the trenches and sampled to geologicalboundaries. The results received to date show high grade uranium mineralisation in alltrenches, with Trench 25 (T25) giving a peak interval of 1.2 metres at 7,723 ppmU3O8 including 0.4 metres at 2.13% U3O8. Results are pending for severalfurther samples in these trenches. Visual uranium mineralisation was identified in several of the trenches. Pleaserefer to Western metals announcement for Photograph 1 (www.westernmetals.com.au)which shows the distribution of uranium minerals highlighted by ultravioletlight in a hand specimen in a 5cm field of view. Drilling Results Summary The RC drilling programme conducted in August consisted of 40 holes totalling2,545 metres. Drill hole depths were limited to approximately 50 metres. Holeswere focused on testing the Para, Moysten and Henri prospects. Please refer to Western Metals announcement (www.westernmetals.com.au) whereDiagram 1 shows the drill hole collar locations for all of the drilling to theend of August. The hole locations are coloured by maximum U3O8 grade. This hasbeen overlain on airborne radiometric survey uranium data clipped to the top 2%data range. Description and Results The August drilling has shown high grades from Para to the south through to theMoysten anomaly 3 kilometres to the north. Drilling at Moysten was a single traverse of wide spaced holes across theradiometric anomaly. Seven of the nine holes drilled returned U3O8 values inexcess of 100 ppm with three containing intervals greater than 300ppm U3O8 . Thepeak interval achieved at Moysten was 3 metres at 863 ppm U3O8 from 41 metresdepth. Further broad spaced drilling at Para and Henri extended the area ofmineralisation around the initial anomalies discovered by the June fieldprogramme. The drilling on the project area has been of a broad spaced reconnaissancedesign to achieve enough data coverage for identification of high grade zonesand controls on mineralisation. Drilling depths have been limited toapproximately 50 metres to ensure the maximum areal coverage in each campaign.The Company believes that potential for mineralisation continues below 50 metresdepth and notes the success of Mantra Resources in drilling below this depth tothe north of Mtonya at Mkuju River. However the Company supports Western Metalsstrategy of maximising areal coverage during a limited drilling season toestablish the most prospective areas at Mtonya. Future Programme Drilling recommenced in early October. The programme will continuereconnaissance spaced testing of the area and also undertake some deeper holesto provide stratigraphic information and limited testing for deeper mineralisedzones. In addition to the drilling, field crews are undertaking furthertrenching, sampling and mapping on the Grandfather, Moysten and Para anomalies. A helicopter supported reconnaissance crew is being deployed to evaluate furtherradiometric anomalies within the Mtonya and Ruhuhu project areas. Table 1: Drill Results Significant Intersections > 100ppm U3O8 Hole ID Prospect Collar Co-ordinates (WGS84) Intersection Longitude Latitude (Deg.N) From Length U3O8 (ppm) (Deg. E) (metres) (metres) MRC033 Para 36.52717 -10.5539 9 2 375 41 3 183MRC037 Para 36.52819 -10.5551 41 2 215 MRC038 Para 36.52419 -10.5541 10 1 960 34 1 120 39 6 287 MRC039 Henri 36.52325 -10.5507 16 3 447 31 2 130 37 6 178 MRC043 Moysten 36.54125 -10.5216 32 2 355 MRC044 Moysten 36.53989 -10.5235 46 3 863 MRC046 Moysten 36.5388 -10.5259 14 1 110 25 1 100 31 4 210 MRC048 Moysten 36.53859 -10.5288 19 3 100 MRC049 Moysten 36.53907 -10.5296 8 1 150 25 1 130 33 1 120 MRC050 Moysten 36.53922 -10.5311 42 1 140 MRC051 Moysten 36.53862 -10.5279 47 3 750 MRC052 Henri 36.52323 -10.5496 10 1 220 Table 2: Grandfather Prospect Trench Results >100 ppm U3O8 Trench ID Channel Trench Co-ordinates (WGS84) Interval Number Longitude Latitude (Deg.N) From Length (metres) U3O8 (ppm) (Deg. E) (metres) T23 3 36.5577 -10.5035 0 1.2 485 T24 2 36.5538 10.5044 0.4 0.4 110 4 0.6 0.6 110 T25 0 36.5508 10.5058 0.4 0.8 325 2 0 1.2 370 6 0 1.2 7,723 Including 0.8 0.4 21,321 8 0 1.1 160 10 0 1 145 T26 4 0 1 135 6 0 1.2 440 8 0 1.2 323 10 36.5507 10.5065 0 0.8 180 T27 4 36.5503 10.5069 0.4 0.8 230 7 0 0.8 1,035 8 0 1.2 130 T28 4 36.5463 10.5093 0 1.2 747 Including 0.8 0.4 1,650 6 0 1.2 370 Notes on Tables: All drilling is vertical. Samples have been collected by riffle splitting dryintervals and representative tube sampling of wet intervals. Samples have beenanalysed by ICP using laboratory method ME-ICP61s by ALS Chemex laboratory PerthAustralia. Samples greater that 10,000 ppm U3O8 have been analysed by XRF usingmethod ME-XRF10s. Certified reference standards and blanks have been included byWestern Metals in addition to laboratory control standards. All results are inU3O8 ppm with analysis method accuracy quoted at circa 10 ppm U3O8. Co-ordinatesare WGS84 and have been measured by hand held GPS. All intersection lengths are estimated to be true width of mineralisation basedon local geological observation. This information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Mr James Pratt whois a Member of The Australasian Institute of Mining and Metallurgy. Mr Pratt isemployed by Uranium Resources plc. Mr Pratt has sufficient experience which isrelevant to the style of mineralisation and type of deposit under considerationand to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2004 Edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves'. Mr Pratt consents tothe inclusion in the report of the matters based on his information in the formand context in which it appears **ENDS** Contacts: James Pratt Uranium Resources plc Tel: 07747 832 043 Ross Warner Uranium Resources plc Tel: 07760 487 769 Hugh Warner Uranium Resources plc Tel: +618 9217 3350 Hugh Oram Nabarro Wells & Co Ltd Tel: 020 7710 7400 Hugo 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 13,500 sq km. This information is provided by RNS The company news service from the London Stock Exchange