23 Jul 2008 11:00
Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration
23 July 2008
Uranium Resources plc ('Uranium Resources' or 'the Company')
High Grade Uranium Mineralisation Results in Tanzania
Uranium Resources plc, AIM listed uranium exploration and development company, is pleased to provide a positive drilling update announced by its joint venture partner, Western Metals Ltd ('WMT'), highlighting continued high grade uranium mineralisation at the Tanzanian projects. This supports the Board's belief that its primary licence areas have the potential to host an economic uranium deposit.
Overview
Regional exploration programme progressing rapidly - 74 RC holes over 4,516m completed during 2008
Results returning significant high grade uranium mineralisation at Mtonya Project including 12 metres @ 676ppm U3O8 from 22 metres and 2 metres at 1,525 ppm U3O8 from 11 metres
Regional reconnaissance exploration at Mtonya, Ruhuhu and Ruvuma project areas on line to deliver new targets for drill testing in 2009
Uranium Resources Director James Pratt said, "Our confidence in our uranium projects remains strong as the on-going drill programme continues to produce positive results. With a committed and active joint venture and development partner in the form of Western Metals, we aim to aggressively progress our exploration activities in Tanzania into 2009 and hope to see further positive indicators as the programme continues."
The drilling programme at the Company's Mtonya Project located 100 km east of the district capital of Songea is progressing well. Reverse Circulation ('RC') drilling carried out along the Mtonya Corridor in southern Tanzania has continued to return significant high grade uranium mineralisation. Results from the first four holes drilled at the Grandfather prospect have returned significant mineralised intersections.
As of 14 July a total of 74 RC holes over 4,516m have been completed during the 2008 drilling programme. To date drilling has been conducted wholly on the prospects along the Mtonya Corridor. Infill and extension drilling at known prospects such as Moysten and Henri have confirmed tenor and extended mineralisation. In addition, assay results of the first batch of samples from the Grandfather Prospect, located some 5 kilometres northeast of the Henri prospect, returned a number of significant mineralised intersections.
Significant mineralised intercepts from the 2008 RC drilling to date include:
MRC143 - 12 metres at 676 ppm U3O8 from 22 metres
MRC143 - 3 metres at 690 ppm U3O8 from 12 metres
MRC139 - 2 metres at 1,525 ppm U3O8 from 11 metres
MRC116 - 7 metres at 263 ppm U3O8 from 44 metres
MRC136 - 5 metres at 222 ppm U3O8 from 18 metres
MRC127 - 3 metres at 250 ppm U3O8 from 4 metres
Results from the high resolution airborne radiometric surveys flown in June have been received and processed. Interpretation of data has resulted in further definition of existing anomalies and identification of a number of new anomalies are scheduled to be followed up.
As part of the Company's aggressive exploration programme, RC drilling, ground based geological, geophysical and geochemical surveys are set to continue. Drilling will further evaluate prospects along the Mtonya Corridor and provide a preliminary assessment of the Foxy and Pedro prospects, in the Ruvuma and Ruhuhu project areas respectively.
Tanzania - Uranium
The current RC drilling programme has been designed to continue evaluating the Mtonya Corridor before moving on to the evaluation of regional prospects in the Ruhuhu and Ruvuma Project areas. For a diagram of Joint Venture tenure and major prospects please see the following link.
http://www.rns-pdf.londonstockexchange.com/rns/6889Z_-2008-7-23.pdf
Mtonya Project Area
The focus of the current phase of exploration during 2008 has been RC drilling evaluation of prospects along the Mtonya Corridor, in particular the Grandfather, Rufus, Henri, Para Extended and Mad Fish prospects.
RC drilling has initially been aimed at evaluating the Grandfather prospect where previous trenching of airborne ground radiometric surveys and surface grab sampling (4.64% U3O8, 0.02% U3O8) returned significant results from a series of 5 trenches excavated over a strike of 1.4 kilometres. As announced on 26 November 2007, visual uranium mineralisation was identified in several trenches with:
T25 giving a peak interval of 1.2 metres at 7,723ppm U3O8, including 0.4 metres at 2.13% U3O8;
T27 giving a peak interval of 1.2 metres 4,773 ppm U3O8 and 1.2 metres at 2,393ppm U3O8; and
T28 giving a peak interval of 1.2 metres at 746ppm U3O8.
As of 14 July a total of 74 RC holes for 4,516m had been completed during the 2008 drilling programme. Full results are presented in Table 1 below.
Table 1: Drill Results Significant Intersections >100ppm U3O8
| HOLE ID | Prospect | Northing (metres) | Easting (metres) | FROM (metres) | WIDTH (metres) | Intersection U3O8 ppm |
| MRC116 | Moysten | 230392 | 8835932 | 44 | 7 | 263 |
| MRC126 | Henri | 230370 | 8833794 | 26 | 1 | 110 |
| MRC127 | Henri | 228940 | 8832660 | 4 | 3 | 250 |
| MRC127 | Henri | 228940 | 8832660 | 18 | 1 | 130 |
| MRC127 | Henri | 228940 | 8832660 | 23 | 1 | 480 |
| MRC129 | Henri | 228995 | 8832432 | 50 | 1 | 140 |
| MRC129 | Henri | 228995 | 8832432 | 57 | 1 | 110 |
| MRC129 | Henri | 228995 | 8832432 | 72 | 2 | 205 |
| MRC135 | Para | 228948 | 8831603 | 7 | 8 | 128 |
| MRC135 | Para | 228948 | 8831603 | 41 | 4 | 123 |
| MRC136 | Grandfather | 231907 | 8837464 | 11 | 3 | 250 |
| MRC136 | Grandfather | 231907 | 8837464 | 18 | 5 | 222 |
| MRC138 | Grandfather | 232037 | 8837456 | 22 | 2 | 300 |
| MRC139 | Grandfather | 232114 | 8837502 | 11 | 2 | 1525 |
| MRC139 | Grandfather | 232114 | 8837502 | 16 | 1 | 130 |
| MRC139 | Grandfather | 232114 | 8837502 | 27 | 1 | 770 |
| MRC143 | Grandfather | 231826 | 8837410 | 12 | 3 | 690 |
| MRC143 | Grandfather | 231826 | 8837410 | 22 | 12 | 676 |
Notes on Table: All drilling vertical. Samples have been collected by riffle splitting dry intervals and representative tube sampling of wet intervals. Samples have been analysed by ICP using laboratory method ME-ICP61s by ALS Chemex laboratory Perth, Australia. Samples greater that 10,000 ppm U3O8 have been analysed by XRF using method ME-XRF10s. Certified reference standards and blanks have been included by Western Metals in addition to laboratory control standards. All results are in U3O8 ppm with analysis method accuracy quoted at + 10 ppm U3O8. Co-ordinates are UTM Zone 36S, WGS84 and have been measured by hand held GPS. All intersection lengths are estimated to be true width of mineralisation based on local geological observation.
It should be noted that, due to the time required to deliver samples to the laboratory and then receive results, only a small proportion of assay results from this year's programme have been received to date. For a diagram of the drill status please see the following link.
http://www.rns-pdf.londonstockexchange.com/rns/6889Z_1-2008-7-23.pdf
Holes have been thematically mapped on maximum downhole U3O8 and presented on a uranium channel radiometric image. White points represent drilled holes for which assays are pending.
Future Programme
An aggressive work programme supported by a substantial exploration budget has been planned for Uranium Resources' south-west Tanzanian uranium exploration for 2008. The budget is in the order of AUD$2 million.
The Tanzanian exploration team has been strengthened with the addition of a second senior geologist, dedicated field technicians, drivers and a logistics officer. Technical support will continue to be provided by WMT's Perth based team.
Further RC drilling of prospects in the Mtonya Corridor will be aimed at continued evaluation of areas of known surface and subsurface uranium mineralisation discovered during 2006 and 2007. RC drilling will continue to test the Moysten, Para, Rufus, Grandfather and Mad Fish prospects as well as evaluating strike continuity to the south west of Para and testing a number of conceptual targets. The drilling programme will also include a number of holes designed to provide stratigraphic information and further explore the concept of blind uranium mineralisation at depth in the Mtonya corridor.
Evaluation of properties and prospects outside the Mtonya Corridor will be accelerated and RC drilling is scheduled to follow ground based geological mapping, ground geophysical and geochemical surveys at the Pedro and Eland prospects.
Regional reconnaissance exploration of the Mtonya, Ruhuhu and Ruvuma project areas will continue. Work has involved a high resolution airborne radiometric survey and will include helicopter and ground supported mapping, trenching, geochemical and geophysical surveys. It is expected that regional work will deliver new targets for drill testing in 2009.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Joseph Drake-Brockman who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Drake-Brockman is employed by Drake-Brockman Geoinfo Pty Ltd. Dr Drake-Brockman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Drake-Brockman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears
**ENDS**
For further information please visit www.uraniumresources.co.uk or contact:
| James Pratt | Uranium Resources plc | Tel: +44 (0)7747 832 043 |
| Ross Warner | Uranium Resources plc | Tel: +44 (0)7760 487 769 |
| Hugh Warner | Uranium Resources plc | Tel: +33 643 916 003 |
| Hugh Oram | Nabarro Wells & Co Ltd | Tel: +44 (0)20 7634 4705 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0)20 7236 1177 |
| Felicity Edwards | St Brides Media & Finance Ltd | Tel: +44 (0)20 7236 1177 |
Notes to editors
Uranium Resources plc is an AIM listed uranium exploration and development company. It is the Company's strategy to advance its existing assets and strengthen its portfolio via opportunist acquisition. Uranium Resources has uranium licences in the highly prospective Karoo Basin in Southern Tanzania where it currently has a land package in excess of 13,500 sq km.