Uru Metals Regulatory News (URU)

28 Aug 2008 10:11



For immediate release

28 August 2008

NIGER URANIUM LIMITED

("Niger Uranium" or "the Company")

Resource Statement

The Board of Niger Uranium is pleased to announce its maiden resource statement for the Company's IN GALL Target on the IN GALL Property in Niger.

Highlights

The In Gall Resource

MSA declares the following SAMREC compliant Inferred Resources at Ingall at varying cut off grades:

Cut off grade  (ppm eU3O8)	Inferred Resource  (Million tonnes)	Grade  (ppm eU3O8)	Metal  (million lbs eU3O8)
50	48.09	92.0	9.76
75	27.84	114.3	7.02
100	14.06	141.5	4.39
125	6.55	176.3	2.55

The uranium at In Gall is associated with an extensive disconformity between the Cretaceous-aged Tegama and Irhazer arenaceous formations. This disconformity crops out at surface and is generally flat lying. The mineralised layer is typically 0.2 to 2.3 metres thick and continuous; within the resource area every borehole intersected mineralisation above a minimum 20 centimetre-100 ppm eU3O8 cut-off. A single minor fault has been identified transecting the zone of mineralisation, but is not expected to have a material impact on the resource estimate.

Mineralogical work on borehole samples has been completed by SGS of Johannesburg. Carnotite, uranophane+/- coffinite and autinite were identified by SEM work as the main uranium bearing phases, typically within a silicate gangue. 

All boreholes are vertical and drilled by the tri-cone method and probed using a Robertson Geologging gamma tool. The probe was calibrated by Medusa Systems BV in the Netherlands, to provide equivalent uranium grades expressed as eU3O8. To support the probe data, 5 diamond core holes were drilled to twin 5 tri-cone holes across the resource area. Samples were collected at 0.2 metre intervals through the mineralised layer and analysed for U3O8 by XRF. The results support the equivalent uranium grades used in the resource estimate. These results are contained in appendix 1. 

The resource is open; the host-formation has been followed westwards by Niger Uranium for 16 kilometres along strike by limited trenching and shallow drilling. Once the rainy season is over (October) step out drilling to extend the resource is planned. 

Where the mineralised layer is exposed at surface, trenches have been excavated to provide exposures to assist with the understanding of the mineralised material. Specific gravity measurements on five samples completed by SGS gave a narrow range of 2.56 to 2.74; an average density of 2.65 tonnes/cubic metre was used for the resource estimate.

Resource estimation and categorisation of the grade estimate was undertaken on the basis of the criteria laid out in the South African SAMREC code. The estimate was made in Datamine. Inverse distance-squared interpolation was used to estimate eU3O8 grades into blocks with dimensions of 50 m (easting), 50 m (northing) and 0.5 m (RL). The search ellipsoid dimensions chosen for the grade interpolation process were 500 m in Easting and Northing and 0.5 m in RL, within the defined envelope.

MSA believes the status and magnitude of these resources could be raised by step-out and infill drilling to further define and possibly extend the known strike length of the high-grade channel. Additional density measurements are also required. All additional and the earlier 2008 drillholes should be accurately collar-surveyed to confirm data integrity. 

Work Programme

In addition to work at the In Gall target, the company is gearing up for the field season commencing late September. Step-out holes are planned to be drilled at the Aboye target where a single borehole (AB003) drilled early in 2008 returned 9 metres at 125 ppm eU3O8 (reported previously) within the Tchirezrine II formation, the formation that hosts Areva's massive Imouraren deposit. 

At other targets within the Irhazer and In Gall licenses a 1600 point radon and geochemical survey is planned given the possible improvement in the security situation in Northern Niger. This survey will be carried out over the favorable structural corridors along which numerous airborne anomalies and anomalous grab samples have been collected (reported previously). The radon data should detect potential concealed uranium mineralisation. In addition, conventional soil and rock analyses will be carried out at each point, to provide a fully integrated geochemical database, which will be used to define target areas for follow-up sampling and drill testing. 

John Sanders, Director and CEO said:

"The In Gall target is the 3rd area to be tested by the company in just over 6 months of operation; the fact that a new uranium resource has been discovered so early in our exploration programme is an excellent result. As well as extending and upgrading this resource, work will now shift to the other high priority targets where every effort will be made to repeat the exploration success achieved at In Gall."

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. 

For further information:

Niger Uranium Limited John Sanders, Chief Executive Officer

Gordon Cassidy, Finance Director

Tel: +27 (0)11 269 4900

Beaumont Cornish Limited

Michael Cornish 

Tel: + 44 (0) 20 7628 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. These forward-looking statements speak only as of the date they are made.

  

Appendix 1.

Results of diamond core verification analyses by XRF and probe results for the same intervals for the original and 'twin' holes. Analyses were completed by SGS Lakefield Laboratory, South Africa.

Borehole Number		Depth (metres)		Sample	Original Hole eU3O8 (ppm)	Twin Hole eU3O8 (ppm)	XRF U3O8 (ppm)
		From	To
H17	30A	26.30	26.50	602	17	30	10
H17	30A	26.50	26.70	603	21	30	20
H17	30A	26.70	26.90	604	27	47	40
H17	30A	26.90	27.10	606	44	75	50
H17	30A	27.10	27.30	607	88	115	210
H17	30A	27.30	27.50	609	199	190	50
H17	30A	27.50	27.70	612	279	240	340
H17	30A	27.70	27.90	613	167	178	310
H17	30A	27.90	28.10	614	100	113	140
H17	30A	28.10	28.30	616	65	67	50
H17	30A	28.30	28.50	617	43	43	30
H17	30A	28.50	28.70	619	31	30	20
H17	30A	28.70	28.90	622	29	29	20
H17	30A	28.90	29.10	623	30	27	30
H17	60B	39.70	39.90	624	28	25	20
H17	60B	39.90	40.10	626	35	26	20
H17	60B	40.10	40.30	627	45	33	40
H17	60B	40.30	40.50	629	53	46	20
H17	60B	40.50	40.70	632	87	62	40
H17	60B	40.70	40.90	633	232	165	40
H17	60B	40.90	41.10	634	275	327	50
H17	60B	41.10	41.30	636	159	226	410
H17	60B	41.30	41.50	637	89	119	200
H17	60B	41.50	41.70	639	57	70	50
H17	60B	41.70	41.90	642	41	44	20
H17	60B	41.90	42.10	643	29	35	10
H17	60B	42.10	42.30	644	24	28	10
H17	57DE	46.70	46.90	646	36	43	40
H17	57DE	46.90	47.10	647	38	47	40
H17	57DE	47.10	47.30	649	42	55	60
H17	57DE	47.30	47.50	652	59	58	60
H17	57DE	47.50	47.70	653	77	65	70
H17	57DE	47.70	47.90	654	165	98	100
H17	57DE	47.90	48.10	656	246	171	210
H17	57DE	48.10	48.30	657	295	246	180
H17	57DE	48.30	48.50	659	339	408	920
H17	57DE	48.50	48.70	662	369	302	250
H17	57DE	48.70	48.90	663	247	169	190
H17	57DE	48.90	49.10	664	118	94	20
H17	57DE	49.10	49.30	666	77	58	20
H17	57DE	49.30	49.50	667	63	54	50
H17	57DE	49.50	49.70	669	59	52	20
H17	57DE	49.70	49.90	672	59	43	30
H17	57DE	49.90	50.10	673	61	43	40
H17	55E	56.75	56.95	674	21	24	30
H17	55E	56.95	57.15	676	15	18	20
H17	55E	57.15	57.35	677	17	17	20
H17	55E	57.35	57.55	679	28	24	20
H17	55E	57.55	57.75	682	65	52	20
H17	55E	57.75	57.95	683	137	99	60
H17	55E	57.95	58.15	684	184	177	150
H17	55E	58.15	58.35	686	253	192	130
H17	55E	58.35	58.55	687	244	264	250
H17	55E	58.55	58.75	689	127	168	420
H17	55E	58.75	58.95	692	72	95	60
H17	55E	58.95	59.15	693	44	61	30
H17	55E	59.15	59.35	694	37	42	20
H17	55E	59.35	59.55	696	37	36	20
H17	55E	59.55	59.75	697	34	33	20
H17	55E	59.75	59.95	699	32	35	20
H17	50G	48.70	48.90	702	36	36	30
H17	50G	48.90	49.10	703	34	34	50
H17	50G	49.10	49.30	704	34	34	30
H17	50G	49.30	49.50	706	38	38	40
H17	50G	49.50	49.70	707	55	55	100
H17	50G	49.70	49.90	709	94	94	140
H17	50G	49.90	50.10	712	190	190	270
H17	50G	50.10	50.30	713	291	291	310
H17	50G	50.30	50.50	714	229	229	170
H17	50G	50.50	50.70	716	190	190	80
H17	50G	50.70	50.90	717	132	132	30
H17	50G	50.90	51.10	719	77	77	30
H17	50G	51.10	51.30	722	48	48	20
H12	50G	51.30	51.50	723	40	40	20
H12	50G	51.50	51.70	724	34	34	30
H12	50G	51.70	51.90	726	31	31	20

Appendix 2.

Glossary

Uranium	Uranium is a silver grey moderately radioactive metallic element that has the symbol U and an atomic weight of 238.03
In-situ leaching (ISL)	In-situ leaching (ISL) or solution mining is a process of recovering minerals such as copper and uranium through boreholes drilled into the deposit. Explosive or hydraulic fracturing may be used to create open pathways in the deposit for a solution to penetrate. Leaching solution is pumped into the deposit where it makes contact with the ore. The solution bearing the dissolved ore content is then pumped to the surface and processed.
Tri-cone drilling	A rapid, relatively cost effective technique of drilling boreholes for uranium exploration by gamma ray probe. The tri-cone drill (or roller) bit, consists of three cone shaped toothed rollers in a cluster. Each of the cones has hard teeth mounted on bearings. The spatial control of sampling for laboratory purposes is not good with tri-cone drilling and alternative drilling techniques would have to be used.
CR39 radon survey	Is a technique of soil survey to measure or detect buried uranium mineralization in certain geological environments.
U3O8 eU3O8	The uranium content of a sample is reported as U3O8 if the analysis is performed in a laboratory. Uranium content when measured by a gamma ray down hole probe is reported as eU3O8.
XRF	X-ray Fluorescence Analysis is a sophisticated laboratory technique for the analysis of uranium and other elements
BHID	Abbreviation for borehole identification number.
UTM	Abbreviation for Universal Transverse Mercator which is a grid-based coordinate system method of specifying locations on the surface of the Earth.
Borehole Collar	The surveyed starting point of a borehole at the earth's surface
ppm	Abbreviation for parts per million. 1000 parts per million are equivalent to 0.1%

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