URU Metals Limited Regulatory News (URU)

12 Nov 2008 09:40



For immediate release 12 November 2008

Niger Uranium Limited  ("Niger Uranium" or the "Company")

Exploration Update

Large radon and geochemical survey commenced on the 100% owned Irhazer license area, Niger.

The exploration team is targeting an apparent repetition of the type of geological setting present at Azelik, to the west of the license area where a significant uranium resource is being developed.

The Company believes that radon detection coupled with conventional geochemistry and geological interpretation are the best means of detecting a potential 'buried' deposit, which may be obscured due to the presence of a cover of younger sediments in the area.

Niger Uranium, the uranium focused exploration and investment company with assets in Niger, South Africa and Namibia, is pleased to announce that a 1600 point radon and geochemical survey has commenced on the company's highest priority targets within its 100 percent owned Irhazer license area in Niger. 

"Potential for a concealed deposit within the Assaouas Formation"

At the nearby Azelik deposit uranium is hosted by the Assaouas Formation along the flanks of a major domal structure occurring on the Azelik fault; the doming and the faulting are thought to have been vital for the extensive mineralisation. Niger Uranium has identified two areas within the Irhazer license which have the potential to host the same formations in a very similar domal setting and which may therefore also host economic concentrations of uranium mineralisation.

The Azelik fault continues north-eastwards across Niger Uranium's Irhazer license and a major domal structure is present in the Emilal area which is one of the areas to be covered by the survey. The presence of a cover of younger sediments conceals the dome to a large extent. The expected depth to the target Assaouas Formation and potential uranium mineralisation is between 80 and 150 metres. Another major domal structure occurs within the Fagoshia area on the Fagoshia Fault 25 kilometres to the south east of Azelik. 

Niger Uranium has recruited specialist radon detection consultants, Stratamodel Inc. of the U.S. to carry out the radon survey. The field teams commenced the 1600-detector survey on the 10th of November. Detectors are being placed on a grid over the Emilal and Fagoshia domal areas. A conventional soil sample and an augered rock chip sample are also being collected at each site and will be analysed to provide data to be used in conjunction with the radon results.

Results and Drill testing

Results of the radon and geochemical survey will be integrated with geological data and statistical analysis carried out to identify targets which will be ranked and drill tested. Drilling is planned to commence within 8 weeks of completion of the survey.

Ian Stalker, Executive Chairman, said:

"We are very pleased to announce the commencement of a Radon and Geochemical exploration survey on the Irhazer license area in Niger. This comes on the back of our recently announced maiden resource at In Gall. We have confidence in our geological model and its potential similarity to mineralisation in the Azelik area"

Note for Editors:

Radon Survey - detection of concealed uranium deposits

Uranium in all deposits decays and radon gas is one of the resulting daughter products. Radon tends to migrate upward and outward from the source through cover rocks; its detection therefore presents an opportunity for qualitative identification of 'buried' uranium deposits. One of the most effective methods to detect and quantify the emanation of radon at surface, is the 'radon cup' technique (also known as track-etch or alpha track method). Each cup or detector uses a film sensitive to the quantity of radon gas it is exposed to.

Competent Person for Niger Uranium

Mr. Richard Wadley (Pr. Sci. Nat), Senior Consultant at MSA Geoservices, is the qualified person responsible for Niger and has verified the data reported above. Mr Wadley is a consultant to Niger Uranium, with no interest in the company and has consented to the inclusion in this announcement of his name in the form and context in which it appears. Exploration data is acquired by Niger Uranium using best practice quality assurance and quality control protocols.

Contacts:

Niger Uranium Limited

Ian Stalker, Executive Chairman

Tel: +27 11 269-4900

Beaumont Cornish Limited

Michael Cornish

Tel: +44 (0) 207 628 3396

Forward Looking Statements:

This press release contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.