Uranium Resources Plc Regulatory News (URA)

18 Jan 2008 11:52

Uranium Resources PLC18 January 2008 Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration 18 January 2008 Uranium Resources plc ("Uranium Resources" or "the Company") Discovery of Two New Uranium Prospects and Extensions to the Uranium Mineralisation in Southern Tanzania Overview • Regional helicopter reconnaissance has discovered two new uranium prospects within the Company's 50:50 joint venture exploration area: • The Foxy prospect at the Ruvuma project area returned a grab sample assay result of 13,400ppm U3O8 (1.34%); and • The Eland prospect at Ruvuma project returned grab sample assay results of 1,080ppm U3O8 (0.108%), 440ppm U3O8 (0.044%) and 141ppm U3O8 (0.014%) • Subsurface uranium identified in drilling at Mtonya (URA 60:40 WMT) over a strike length of 4km. October Reverse Circulation drilling delivered significant intercepts including: • 4 metres at 737ppm U3O8 (0.074%) from 44 metres • 1 metre at 1140ppm U3O8 (0.114%) from 25 metres • 2 metres at 970ppm U3O8 (0.097%) from 20 metres • 3 metres at 216ppm U3O8 (0.022%) from 61 metres • Aggressive 2008 exploration programme in place to further progressTanzanian uranium properties Uranium Resources plc, the AIM listed uranium exploration company, hasdiscovered two new uranium prospects at its Tanzanian properties and receivedfurther positive drilling results from previously intersected uraniummineralisation at its flagship Mtonya Project which now has identifiedsubsurface uranium over a strike length of 4km. URA Director James Pratt said, "These two new discoveries, in conjunction withthe continuing positive drill results from our flagship Mtonya project, act as afurther endorsement of the exciting potential of our Tanzanian portfolio to hosta significant uranium deposit." New Discoveries The results from the regional helicopter supported field reconnaissanceprogramme conducted in November 2007 have resulted in the discovery of two newimportant mineralised systems, Foxy and Eland, in the 50:50 owned Ruvuma projectarea (formerly South Selous). These prospects are located approximately 60kmsouth-east and 110 km south-west of Mtonya respectively. Foxy The mineralisation which occurs at the Foxy prospect is related to a hematisedsandstone bed which is exposed over an area of approximately 0.5km2. Counts upto 20,000 counts per second ("cps") were found in association with abundantyellow secondary uranium mineral, uranophane. In addition, a grab sample takenfrom the eastern edge of the anomaly returned an assay result of 13,400ppm U3O8(1.34%). Eland The Eland Prospect mineralisation is associated with a light colouredsegregation in a banded leuco gneiss. The 50:50 Joint Venture has located anairborne anomaly approximately 0.6km2 with hotspots up of up to 4,000cps. Briefground reconnaissance has yielded a best grab sample assay result of 1,080ppmU3O8 (0.108%). Other results include 440ppm U3O8 (0.044%) and 141ppm U3O8(0.014%). SEM-EDAX analysis has confirmed the bulk of the uranium in the gneiss isassociated with a uranium-rich pyrochlore. The pyrochlore is closely associatedwith biotite and zircon and the uranium averages 16% by weight. The presence ofuranium-rich pyrochlore in a single sample of fresh rock at the Eland prospectis a highly compelling find, worthy of more detailed geological evaluation anddrilling. The discovery of a new type of uranium mineralisation in the basement rock insouth west Tanzania is extremely encouraging. The potential presence of thistype of mineralisation opens up a number of possibilities and warrants there-evaluation of a number of highly significant airborne radiometric anomaliesthat were previously downgraded and dismissed as anomalous basement. Mtonya Uranium Project Results from the third Reverse Circulation ("RC") drilling programme at Mtonyahave delivered further significant intercepts and extended the area ofsubsurface uranium mineralisation. Significant intercepts from the Octoberdrill programme include: • 4 metres at 737ppm U3O8 (0.074%) from 44 metres • 1 metre at 1,140ppm U3O8 (0.114%) from 25 metres • 2 metres at 970ppm U3O8 (0.097%) from 20 metres • 3 metres at 216ppm U3O8 (0.022%) from 61 metres The Joint Venture has now planned an aggressive expansion and developmentprogramme for its Tanzanian uranium properties over 2008. The Joint Venturebudget is expected to be in the order of $4 million during which Western Metalswill achieve 60% ownership of the Company's farm-in tenements by circa June2008. After Western Metals has earned its 60% interest in the farmin tenements,Uranium Resources intends to contribute its 40% share of explorationexpenditure. Uranium Resources also plans to contribute 50% of explorationcosts on the balance of tenements, which include the two new discoveries. The planned programme will include RC drilling, airborne radiometric, groundbased geological, geophysical and geochemical surveys. A copy of Western Metals' announcement can be found on Uranium Resources'website. This announcement includes a number of diagrams and photographs whichmay assist in the understanding of this announcement. Table 1: Drill Results Significant Intersections > 100ppm U3O8 Hole ID Prospects Collar Co-ordinates Intersection (WGS84) Longitude Longitude From Length U308 Comments (Deg. E) (Deg. N) (metres) (metres) (ppm) MRC071 Moysten 36.5426 -10.5279 30 1 120 MRC075 Moysten 36.5368 -10.5194 44 4 738 MRC076 Moysten 36.5358 -10.523 22 1 460 MRC078 Moysten 36.5372 -10.525 12 1 190 MRC078 41 1 170 MRC079 Moysten 36.5396 -10.5239 41 3 240 MRC081 Moysten 36.5413 -10.5213 24 1 170 Open ended at bottom assays pending MRC082 Moysten 36.5405 -10.5217 45 1 270 MRC085 Moysten 36.5431 -10.527 15 3 253 MRC086 Moysten 36.5418 -10.5285 16 3 150 MRC087 Moysten 36.5413 -10.529 28 2 215 MRC088 Moysten 36.5401 -10.5297 20 1 110 Open ended at bottom assays pending MRC088 33 1 130 MRC090 Tahbilk 36.5222 -10.5417 13 1 180 MRC093 Moysten 36.5207 -10.5435 12 1 180 MRC094 Henri 36.5199 -10.5465 39 1 190 Open ended at bottom assays pending MRC095 Henri 36.5208 -10.5527 27 2 205 MRC096 Henri 36.5217 -10.5522 36 1 170 Open ended at bottom assays pending MRC097 Henri 36.5209 -10.5515 31 1 170 MRC098 Para 36.5246 -10.5535 25 1 1140 MRC100 Henri 36.525 -10.5525 9 3 643 MRC100 57 1 470 MRC101 Henri 36.5269 -10.5505 8 2 445 MRC101 15 1 110 MRC101 44 1 130 MRC103 Para 36.5274 -10.5541 6 2 150 Open ended at bottom assays pending MRC103 15 2 105 MRC105 Para 36.5269 -10.5535 11 6 122 MRC106 Henri 36.5248 -10.5532 56 4 135 MRC107 Henri 36.5243 -10.5532 20 2 970 MRC107 32 1 120 MRC107 47 1 230 MRC107 59 1 180 MRC109 Para 36.5268 -10.5565 16 1 110 MRC113 Corridor 36.5367 -10.5395 54 2 185 MRC113 61 3 217 Notes on Table: All drilling vertical. Samples have been collected by rifflesplitting dry intervals and representative tube sampling of wet intervals.Samples have been analysed by ICP using laboratory method ME-ICP61s by ALSChemex laboratory Perth Australia. Samples greater that 10,000 ppm U3O8 havebeen analysed by XRF using method ME-XRF10s. Certified reference standards andblanks have been included by Western Metals in addition to laboratory controlstandards. All results are in U3O8 ppm with analysis method accuracy quoted at10 ppm U3O8. Co-ordinates are WGS84 and have been measured by handheld GPS. All intersection lengths are estimated to be true width ofmineralisation based on local geological observation. Results in grey havepreviously been reported. The information in this announcement that relates to Exploration Results,Mineral Resources or Ore Reserves is based on information compiled and/orassessed by Dr Joseph Drake-Brockman who is a Member of The AustralasianInstitute of Mining and Metallurgy. Dr Drake-Brockman is employed byDrake-Brockman Geoinfo Pty Ltd. Dr Drake-Brockman has sufficient experiencewhich is relevant to the style of mineralisation and type of deposit underconsideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2004 Edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves'. DrDrake-Brockman consents to the inclusion in this announcement of the mattersbased on his assessment of the available information in the form and context inwhich it appears. **ENDS** For further information please visit www.uraniumresources.co.uk or contact: James Pratt Uranium Resources plc Tel: +61 412 743382 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 Felicity Edwards 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. 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