21st Jul 2014 09:05
LONDON (Alliance News) - Uranium Resources PLC Monday said it has decided to delay any further drilling at its Mtonya uranium project in Tanzania until market fundamentals improve.
Uranium Resources shares were down 17% to 0.730 pence, putting them amongst the top AIM fallers on Monday.
The uranium exploration and development company said that until the market for uranium improves, the true potential of the project is not being recognised by the wider market.
Uranium Resources said it will continue to evaluate its exploration and development strategy, including corporate transactions, in order to advance the value of Mtonya, which has already benefited from a 26,485 metre resource-definition drilling programme.
As a result, the company has started a review of its overall tenement strategy in Tanzania and has relinquished its licences in the Ruhuhu Basin, which were 150 kilometres from the Mtonya site and not central to future growth potential.
"There are strong nuclear fuel market fundamentals in place including the continued growth in Asian and European power generation; and finite supplies of secondary uranium and existing limits on economically viable uranium resources," Managing Director Alex Gostevskikh said in a statement. "As such we remain optimistic that we will be able to continue to advance Mtonya and look forward to updating the market on developments in due course."
By Tom McIvor; [email protected]; @TomMcIvor1
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