Uranium Resources Plc Regulatory News (URA)

18 Dec 2007 18:09

Uranium Resources PLC18 December 2007 URANIUM RESOURCES PLC FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2007 EXECUTIVE DIRECTOR'S STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 The financial year ended 30 June 2007 has been a year of corporatereorganization, uranium exploration success and strong growth in the value ofUranium Resources plc ("URA" or the "Company"). The first half of the year saw the completion of the change in board members ofyour company to the present composition of Hugh Warner, James Pratt and RossWarner. Coupled with the reinvigoration of the board of directors, URA enjoyedexploration success in Southern Tanzania and with this success the Company wasable to raise £2,000,000 in new equity to strengthen our balance sheet. Thesecond half of the year saw the announcement of further exploration results, theacquisition of additional exploration tenements and further growth in the valueof your company. The Company's primary focus has been on the exploration of its land holdings inSouthern Tanzania and the expansion of that land holding. In the first half ofthe period under review channel samples from trenches at the Company's Henrianomaly produced assays of up to 2.71% U3O8. The Company continued to expandits land holding from approximately 7,600 sq kms in granted tenements toapproximately 10,850 sq kms in granted tenements and a further 2,700 sq kms inapplications. The Company notes that its key Henri area has been converted froma Reconnaissance Licence to a Prospecting Licence granted 22 November 2007. Included below is a more detailed summary of exploration activity carried outduring the period of review. Shareholders are encouraged to review theCompany's recently rebuilt web site at www.uraniumresources.co.uk where you willfind pictorial illustrations of the Company's recent successful explorationprogrammes. Finally I would like to remind shareholders that the Karoo Basin of SouthernTanzania remains one of the least explored uranium provinces in the world andits potential remains yet to be unlocked. The average historical expenditure onuranium exploration in Tanzania has been US $4 /sq km compared to US $16 inWestern Africa and US $224/sq km in the United States (USGS). Yet the geologyis analagous to the sediments hosting Paladin's Kayelekera deposit 300 km awayin Malawi and the drilling success of URA and of Mantra 25 km to the north atMkuju River demonstrate the potential for a discovery in this under exploredprovince. The Board believes that this fact differentiates URA from many of itscompetitors seeking exploration success in areas of intense historicalexploration by uranium majors. This has been demonstrated by the Company'sability to rapidly delineate anomalies and generate exciting results at surface. Exploration Activity in Detail During the period under review, all uranium exploration was carried out by URA'sjoint venture farm-in partner, Western Metals Limited (ASX: WMT). During the fourth quarter ended 30 June 2007, extensive exploration activitieswere conducted primarily focused on the Mtonya project where previousexploration had identified a large trend of radiometric anomalies and high gradesurface uranium mineralisation. In addition, significant logistical activities were undertaken following the endof the wet season in late April, in order to improve access links to the Mtonyaproject. Earth moving contractors were deployed to establish access to the Henriarea of the Mtonya project. The contractors completed a 12 kilometre road intothe main exploration area suitable for drilling equipment and the field camp wasestablished by the end of May. Subsequent to completing the main road thecontractors established spur roads to access the work areas to create furtherdrilling targets. This access now provides an important base for intensive fieldwork to be conducted with transport of equipment and supplies now being easilymanaged. Drilling The aim of the fourth quarter drilling programme was to determine if subsurfacemineralisation existed below the radiometric anomalies and surfacemineralisation identified in previous field programmes. Based on results to date, and in combination with the outstanding results fromsurface trenching of up to 2.7% U3O8 in channel samples, the drilling programmewas a success having shown that strong subsurface mineralisation is present.Intersection widths range up to seven metres and the results indicated multiplemineralised horizons preferentially hosted in sandstone units frequently at ornear contact with mudstone units. This is typical for sandstone hosted rollfront style uranium deposits such as the Kayelekera deposit in neighbouringMalawi. Significantly, the results show that subsurface mineralisation occurs over theentire Henri trend from Para to Tahbilk. The peak intersection of 1 metre at470ppm U3O8 from the broad spaced drilling at Para supports the potential forhigh grade mineralisation to exist over the entire trend. The Tahbilk anomalyhas returned a peak value of 1 metre at 140 ppm U3O8 from two broad spaced holespotentially located off the main anomaly area. 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. Second Half Drilling Results The Company reminds investors that this is the very first drill programmeundertaken for uranium in Southern Tanzania and the promise shown from thesevery early results provide the Company with strong encouragement for the futureexploration of the Mtonya area and for its wider exploration effort. Peak intersections above 100 ppm U3O8 cut-off achieved include: • 7 metres at 1,233 ppm U3O8- including 3 metres at 2,607 ppm U3O8• 7 metres at 549 ppm U3O8 - including 4 metres at 843 ppm U3O8• 6 metres at 507 ppm U3O8 - including 2 metres at 1,145 ppm U3O8• 7 metres at 400 ppm U3O8 - including 3 metres at 770 ppm U3O8• 4 metres at 515 ppm U3O8 - including 2 metres at 855 ppm U3O8 Further drilling was conducted in August 2007 to test other anomalies andcontinue evaluation of the area identified by the June programme. Airborne Radiometric Survey A high resolution helicopter radiometric survey was completed during the periodunder review over the most prospective areas of the Mtonya project. The surveycomprised 5,150 line kilometres of data collection on 250 metre spaced flightlines. The interpretation of data has identified more than 15 anomalies of interestthat warrant further exploration and has provided more detailed definition ofanomalies identified from historic data. Field parties commenced accessing knownanomalies during June to conduct geological data collection and sampling. Field Reconnaissance A field party was deployed via helicopter during April-May to conductpreliminary reconnaissance on anomalies identified from historic broad spacedairborne radiometric surveys in the Ruhuhu project area to the west of Mtonya.The work involved ground checking of selected anomalies, ground radiometricsurveys, geological observation and sampling. The results of the reconnaissance are considered encouraging with one anomalygiving a peak result of 2,500 counts per second at surface using a hand heldscintillometer. Further detailed exploration during the second half of calendar2007 including drilling and detailed airborne radiometric surveys will beconducted in the area. Trenching and sampling of anomalies in the greater Henri Project area were alsoconducted during the period under review in addition to a ground follow-up ofheli-radiometric anomalies. Land Acquisition URA acquired a Joint Venture interest in the reconnaissance prospecting licencePLR 3467/2005 in the south west of Tanzania. The licence covers rocks of themiddle to upper Karoo sequence of the Ngaka Sub-basin in the Ruhuhu Basin. Thissequence includes layered sequences of mudrocks and fluvial sandstones suitablefor hosting sandstone style uranium deposits. Previous work by Uranerzberbau GmbH ("UEB") in the early 1980s located a 129 ppmU3O8 anomaly within a sandstone/siltstone outcrop within the tenement. Nofurther work has been conducted on this anomaly. Several untested airborneradiometric anomalies identified from historic Geo-survey data also exist withinthe area. The ownership structure of this arrangement is; • Uranium Resources plc 45%• Western Metals 45%• Tanzanian Partners 10% (free carry through to feasibility study) Western Metals is the project manager of exploration activities in Tanzaniaunder the joint venture agreement. In addition to the acquisition of PLR 3467/2005 two further Joint Venturelicences PLR4432/2007 and PLR4476/2007 were granted during the period taking thetotal licence holding under management to approximately 10,850 sq kms in grantedtenement and 2,700 sq kms in applications. November 2006 Field Trip The results of the August and November 2006 exploration field program on theMtonya Uranium Prospect in Tanzania were the value driver for URA in the periodunder review. The November field program was completed successfully on 2 December 2006 with afurther 7 trenches excavated and sampled, bringing the total number of trenchesat Mtonya to 13. Detailed radiometric surveys were also completed at the Henri,Para and Tahbilk anomalies. Further afield, reconnaissance surveys were conducted over a 5 km trend to thenorth east of Henri, identifying several new anomalies at Galway, Moysten andGrandfather. It was after the November field programme that we announced: 'The data collectedby Dr Drake-Brockman on the recent field trip further enhances the Company'sbelief that the Mtonya system has the potential to host a significant ore bodyand provides the Company with further immediate drill targets for our planneddrilling program in June 2007 post the upcoming wet season.'. The Henri detailed radiometric survey has provided greater definition over theknown anomaly and identified a further six >200 cps anomalies within 250 metresof the Henri discovery anomaly. The surveys of the Para and Tahbilk anomalies have increased the extent of theMtonya anomalies. Trenching on these areas has also been completed to determinethe distribution of uranium near surface.. August 2006 Field Work Final Results Trenching work conducted at Mtonya in August included excavating, sampling andmapping 5 trenches at the Henri anomaly area and collecting surface samples fromsites of elevated radiometric response. Trenches were dug to a depth of 1 to 1.5 metres. Channel samples and selectivegrab samples were collected and the trenches were geologically mapped. Channelsamples were collected at 1 to 2 metre intervals along the length of thetrenches. Sample lengths were based on geological boundaries and collectedperpendicular to the generally sub-horizontal dip of the host geology. Trench 1 and Trench 2 at the Henri anomaly showed visible yellow secondaryuranium mineralisation. Photographs of the project including the visible uraniummineralisation are available on the Company's web site. The assays received from the trenches showed high grade uranium was present inTrench 1 and Trench 2 with lower results from Trenches 3, 4 and 5. The resultsfrom Trenches 4 and 5 are interpreted to be from beneath the redox boundaryfront. The assays remain elevated indicating they are within the mineralizedsystem. Trench 1 and Trench 2 show continuous zones of uranium mineralisation. Ofsignificance is that both trenches remain strongly mineralized at the easternand western extremities and in the bases of each trench indicating that themineralisation is more extensive than these exposures. Samples were also collected from the surface or shallow trenches (