11 Oct 2010 07:00
Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration
11 October 2010
Uranium Resources plc ('Uranium Resources') or ('the Company')
Drilling Update
Uranium Resources plc, the AIM listed uranium exploration and development company, is pleased to announce that it has completed phase 1 of its drilling programme at the Mtonya Prospect in Tanzania and commenced phase 2 of the programme.
The primary objective of phase 1 was to test the Company's geological model and identify favourable geological settings. The initial results of phase 1 have confirmed management's geological interpretation on a district and prospect scale. Of particular significance have been observations of the right prospective lithologies and the intersection of strata, which have been subjected to extensive redox processes. Management believe these have potential to host large-scale uranium mineralisation.
Phase 1 comprised three diamond core drill holes for a total of 1,512m. The Company is yet to receive all assays for phase 1 drill holes. Due to the success of phase 1, the Company has commenced phase 2 which will comprise a further 2,200m of diamond core drilling. Phase 2 will further define the geology and is expected to generate drill targets for subsequent exploration programmes. The Company has engaged an additional rig to undertake the work and strengthened the field team by the addition of two experienced uranium geologists. The Company expects to complete phase 2 drilling, subject to weather conditions, by year end and will provide further updates in due course.
Alex Gostevskikh, Managing Director of Uranium Resources, said, "We are particularly pleased with the outcome of phase 1 and we are glad to see it generating initial positive results. Observing the predicted lithologies and the scale of ore forming processes is very encouraging. The Company has put a lot of effort into designing this drill programme and we are continuing to process the large quantities of data being generated. We are still awaiting the majority of assay results from the programme. However, the processing of this data will advance our understanding of the mineralisation controls and help us generate valid drill targets for future drilling programmes. Phase 2 is designed to further develop our geological model and generate targets for interpretation and follow-up."
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information assessed by Alex Gostevskikh who is a Member of the Mining and Metallurgical Society of America. Mr Gostevskikh 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'. Mr Gostevskikh 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:
| Alex Gostevskikh | Uranium Resources plc | Tel: +44 (0) 7997 713377 |
| Ross Warner | Uranium Resources plc | Tel: +44 (0) 7760 487769 |
| Hugh Warner | Uranium Resources plc | Tel: +61 (0) 413 621 652 |
| Samantha Harrison | Ambrian Partners Ltd (Nomad) | Tel: +44 (0) 20 7634 4700 |
| 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 exploration and development company. It is the Company's strategy to advance its existing assets and strengthen its portfolio via opportunistic acquisition. Uranium Resources has uranium licences in the highly prospective Karoo Basin in Southern Tanzania.