URU Metals Limited 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:

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.

Appendix 2.

Glossary

ENDS