15th May 2006 07:03
Uranium Resources PLC15 May 2006 Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration Uranium Resources plc ('Uranium Resources' or 'the Company') Locates outcropping Uranium Mineralisation in Tanzania Overview • Outcropping uranium mineralisation identified on Tanzanian licences following a short reconnaissance field trip • Peak surface sample assay result of 975ppm (0.098%) U3O8 • Assays resulted from testing one airborne anomaly, which is part of a string of airborne anomalies that trend over 7km within the Mtonya group of tenements • An extensive field work programme is planned for the coming dry season in July-August to further evaluate these encouraging early results Results of Field Work Uranium Resources plc, the AIM listed uranium exploration and developmentcompany, is pleased to announce that it has confirmed the presence of uraniummineralisation on its Tanzanian licences. Positive results from a shortreconnaissance field trip in the Mtonya group of tenements in the southern partof Tanzania revealed outcropping uranium mineralisation with a peak assay resultof 975ppm (0.098%) U3O8. These results come from testing one airborne anomaly from a string of airborneanomalies that trend over seven km within the tenement. In light of theseresults major field work is planned for July-August 2006 during the dry season. During April 2006 the Company's consultant, Dr Joe Drake-Brockman, undertook a 3day reconnaissance field trip to the Mtonya group of tenements in southernTanzania. Aside from preparing for the major field trip in July - August thisyear, the primary aim of the survey was to carry out initial ground checks of arank one airborne radiometric anomaly in the northeast corner of prospectingreconnaissance licence (PRL) 3185. This anomaly has been named the Henrianomaly. Despite limited time and restrictive conditions associated with operating in thewet season, Dr Drake-Brockman was able to locate the anomaly and confirm thepresence of uranium as demonstrated by the analysis from the four surfacesamples taken, which are presented in Table 1. Furthermore Dr Drake-Brockman wasable to confirm that Karroo sandstones form the host rock to the Henri anomaly. Table 1 Sample ID U3O8 ppm Thorium_(ppm) A0-008 975 9 A0-006 120 6 A0-007 42 8 A0-005 40 13 Traces of yellow secondary uranium mineralisation were noted in sample A0-008.This assay compares well with the average grade of Paladin's Kayelekera deposit(840 ppm eU3O8), which is located in a similar environment in Karroo sedimentson the northwestern edge of Lake Malawi. The airborne anomaly tested is one of a group of anomalies on URA's licence.These results indicate that a number of the remaining airborne uranium anomaliesin the vicinity may be similarly caused by near surface uranium mineralisation.The anomalies appear to outline a 7 km long uranium trend that the Companybelieves has the potential to host a significant uranium deposit. The Company, in conjunction with its joint venture partner Western MetalsLimited, is currently scheduling secondary field work to be undertaken betweenJuly and August this year. The first phase of work will be undertaken by foot asthe forest cover and steep topography restrict vehicular access. This work willconsist of radiometric traverses to confirm the size, continuity and magnitudeof the airborne anomalies, sampling of hotspots to verify uraniummineralisation, trenching of mineralised zones to estimate thickness andorientation and geological mapping of trenches and outcrops to establish theparameters controlling the mineralisation. Assuming positive results, theCompany will commence planning a drilling programme. Uranium Resources CEO Hugh Warner said: "These results are great news and Ibelieve confirm our view that the Mtonya group of tenements in the southern partof Tanzania are highly prospective. As a result we and our proposed jointventure partner are initiating a second round of comprehensive field work aimedat identifying drill targets." As previously announced on 3 April 2006, Uranium Resources has offered a farm-inagreement to Western Metals Limited, a company listed on the Australian StockExchange, whereby Western Metals will earn a 40% interest in Uranium Resource's100% owned Tanzanian Prospecting Licences through the expenditure of A$2 millionon the licences. Western Metals must spend a minimum of A$500,000 within 12months of the completion of the transaction and will be the operator of thejoint venture. Western Metals may increase its ownership to 60% through theexpenditure of a further A$2 million on the licences. The transaction issubject to the approval of the Western Metals shareholders at a general meetingto be held on 19 May 2006. Western Metals intends to make a similar announcement to the Australian StockExchange. Its announcement will include some diagrams. The Company willshortly make those diagrams available on its website:www.uraniumresouces.co.uk. The information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Dr JosephDrake-Brockman who is a Member of The Australasian Institute of Mining andMetallurgy. Dr Drake-Brockman is employed by Drake-Brockman Geoinfo Pty Ltd. DrDrake-Brockman has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify as a Competent Person as defined in the 2004Edition of the 'Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves'. Dr Drake-Brockman consents to the inclusion in thereport of the matters based on his information in the form and context in whichit appears. **ENDS** Contacts: Ross Warner Uranium Resources plc Tel: 07760 487 769Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes: Uranium Resources plc was admitted to AIM on 18 February 2005. It wasestablished to acquire uranium assets on a worldwide basis with a primarygeographical focus on Africa and Australia. The Company will consideracquisitions covering the full range of projects from exploration to productionwith a bias towards known, but undeveloped uranium resources and has an initialgoal to acquire up to 100 million lbs of in-ground uranium. The Board ofDirectors is experienced in identifying and evaluating uranium acquisitionopportunities and possesses the skills to finance and develop a portfolio ofuranium assets. The Company aims to take advantage of the re-organising of theenergy producing market and the increasing need for nuclear energy. Renewedinterest in uranium exploration and mining with the growth in energyrequirements in both the developed and developing worlds means that a shifttoward nuclear generation is increasingly likely. Importantly, nuclear energy isthe only base-load power source that does not produce greenhouse gases. 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