Uranium Resources Plc Regulatory News (URA)

1 May 2008 12:10

Uranium Resources PLC01 May 2008 Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration 1 May 2008 Uranium Resources plc ("Uranium Resources" or "the Company") Quarterly Activity Report Released By JV Partner Western Metals Ltd Uranium Resources plc, the AIM quoted uranium exploration and developmentcompany operating in Southern Africa, is pleased to provide a quarterly updatereleased by its joint venture partner, Western Metals Ltd ('WMT'), on activitiesunderway at its uranium projects in the prospective Karoo Basin in SouthernTanzania, where it currently has a land package in excess of 13,500 sq km. Highlights • Reverse Circulation ('RC') drilling scheduled to commence mid-May, initially aimed at evaluating the Grandfather prospect at Mtonya - previous trenching of airborne ground radiometric surveys and surface grab sampling returned significant results (4.64% U3O8, 0.02% U3O8) • RC drilling campaigns are also scheduled to evaluate the recently defined Foxy and Eland prospects • 2008 exploration programme at Mtonya, Ruhuhu and Ruvuma project areas includes airborne and ground geophysics, geological mapping, geochemical sampling, costeaning to generate new drill targets for 2009 • Continues to form strong relationships with the local communities, non-government and government organisations Field work and preparation for 2008 programme Planning and preparations for the 2008 exploration programme has progressedwell, with all major contractors and consultants signed up. Drilling is expectedto commence mid-May and a high-resolution airborne radiometric survey isscheduled to start in late May. Field work continued during the March quarter with field trips in February,March and April. Work focused on re-establishing access into the Mtonya Corridorprospects after the monsoonal rains and also on establishing access to theGrandfather, Foxy, Eland, Ngaka, Pedro and Mad Fish Prospects. Work completedduring the quarter included trenching and sampling at prospects within theMtonya Corridor, ground scintillometers surveys at Eland, rock chip sampling andmapping at Eland, geophysical re-logging of holes previously drilled into theMtonya Corridor prospects, hydro-geochemical base line and orientation studiesin the Mtonya Corridor area and DGPS surveys at various prospects. Results ofgeochemical sampling will be available during the June quarter. Collation and interpretation of geophysical, geological and geochemical datacontinues and significant progress has been made with respect to correlationsbetween holes and sections and to the possible geometry and controls onmineralisation. Community relations The community relations programme continues to engage all stake holders and formstrong relationships with the local communities, non-government and governmentorganisations. Negotiations with hunting licence owners have been successful and workprogrammes for 2008 have been endorsed. Mr George Bauk and Mr Moshin Adballah ofGame Frontiers Ltd, local and neighbouring village residents, village leaders,district and regional government officials and representatives of theMbarang'andu wildlife community met in Mchomoro in Southern Tanzania in January.The visit was a huge success and the community expressed support for jointventure activities in the area. The joint venture partners and Game Frontierscommitted significant financial support to the community specifically to -support 250 orphans with schooling for one year, provide four high schoolscholarships to private schools and assistance to complete the district officebuilding. Exploration programme for 2008 An aggressive regional and prospect specific exploration effort consisting ofairborne and ground geophysics, geological mapping, geochemical sampling,costeaning and RC drilling is planned for 2008. A dualistic approach toexploration will be adopted. The 2008 programme will continue to build on thesuccesses of the 2007 exploration effort, focusing on evaluation of existingtargets and will also aim to generate new targets that will feed the project "pipeline" and will deliver drill targets for 2009. Mtonya Project Area - The focus of exploration during 2008 will be RC evaluationof prospects along the Mtonya corridor and in particular the Grandfather, Rufus,Para extension and Mad Fish. This includes 8,500m of RC drilling. Work willinclude geological mapping, costeaning, ground geochemical and geophysicalsurveys, RC drilling and rehabilitation. The discovery of the Eland anomaly/prospect in "basement" is considered to upgrade the prospectivity of both theLikuyu and Main blocks. Further work will be done to evaluate "basement areas"for similar styles of mineralisation. RC drilling, scheduled to commence in mid-May, will initially be aimed atevaluating the Grandfather prospect where previous trenching of airborne groundradiometric surveys and surface grab sampling (4.64% U3O8, 0.02% U3O8) returnedsignificant results from a series of 5 trenches excavated over a strike of 1.4kilometres. Visual uranium mineralisation was identified in several trencheswith: • 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 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. Ruhuhu Project Area - The focus of exploration during 2008 will be RC evaluationof regional potential and existing prospects in particular the Pedro anomaly andother airborne radiometric anomalies not yet assessed. This includes 1,000m ofRC drilling to drill test the Pedro anomalies and environs. Work will includehelicopter supported reconnaissance, geological mapping, costeaning, groundgeochemical, geophysical surveys, RC drilling and rehabilitation. Ruvuma Project Area - The focus of exploration during 2008 will be regionalreconnaissance with a view to defining targets for follow-up in 2009 as well asa ground geophysical work, sampling and RC drilling campaigns to evaluate therecently defined Foxy and Eland prospects. This includes 3,000m of drilling.Work will include a helicopter supported reconnaissance, an airborne radiometricsurvey, geological mapping, costeaning, ground geochemical, geophysical surveys,RC drilling and rehabilitation. Glossary Costeaning: excavation of trenches to facilitate systematic sampling of thesubsurface rock profile Ground scintillometers surveys: hand and car-borne systematic surveys of thevariation in various types of radiation emitted from rocks and soil using ascintillometer DGPS surveys: differential global positioning system used to locate drillholes,costeans etc to a high degree of accuracy **ENDS** For further information please visit www.uraniumresources.co.uk or contact: James Pratt Uranium Resources plc Tel: +61 412 743 382Ross Warner Uranium Resources plc Tel: 07760 487 769Hugh Warner Uranium Resources plc Tel: +618 9217 3350Hugh Oram Nabarro Wells & Co Ltd Tel: 020 7634 4705Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7236 1177 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