1st Dec 2008 07:00
UMC ENERGY PLC
("UMC Energy" or "the Company")
OPERATIONS UPDATE
The directors of UMC Energy plc (AIM : UEP) wish to update the market on the following activities which have been carried out during the year to date.
The original exploration plan for 2008 had involved a drilling programme designed to validate the CEA indicated resource at Folakara. However, following a review of strategic priorities, it was decided to suspend this programme in favour of a more comprehensive programme of fieldwork designed to evaluate the full range of drill targets/opportunities in the total tenement package.
An airborne spectrometric survey had been flown over the entire Makay tenements (~9,400 sq km) at a 400m spacing and 80m elevation using the Medusa spectrometric airborne system with a total of over 23,000 line kms in 2007.
The processing and analysis of the Medusa airborne radiometric data for both the Folakara and Makay tenements began in late 2007 and continued in 2008. The base line data was reprocessed to produce colour images of the uranium channel and stacked profiles of the uranium and uranium / thorium ratio. From this data, a total of 29 anomalies at Folakara and 21 anomalies in the Makay tenements were identified as being of interest for field investigation.
Two periods of helicopter supported field work were undertaken in August and October 2008 when conditions were best suited to this work. This programme involved conducting initial ground radiometrics and spot surface sampling on the identified anomalies at Folakara and Makay that were identified from the airborne data.
The programme at Folakara was successful in locating 28 (of the 29) identified targets. Ground traversing with a spectrometer was undertaken in the vicinity of the anomaly, indicative assays taken with the spectrometer and in several cases grab surface samples collected. Outcomes of this work include:
Several additional sites of potential mineralisation have been located. These sites warrant further testing.
The mineralisation is more widespread than previously understood.
The assays (spectrometer and laboratory) of the areas of interest highlight a strong correlation with vanadium and low levels of thorium which is characteristic of uranium deposits.
The work supports the earlier thesis of mineralisation (deposits) at a grade of several hundred ppm U3O8.
The programme at Makay was successful in locating 16 (of the 21) identified targets, as a mechanical failure with the helicopter required the premature cessation of the programme. The same process as undertaken at Folakara was carried out at Makay. Outcomes of this work include:
A large area of potential mineralisation is indicated by 5 sites in the north-east of the tenements over an area measuring approximately 50km x 10km. Each of these sites has the potential to host small/medium sized uranium deposits.
This mineralisation is of the right type with low thorium and high vanadium. All of the occurrences are outcropping oxidised sandstones that lie above the water table.
The current assay results supports likely grades in the range of several hundred ppm U3O8.
The 2008 field work was used as the basis for determining the boundaries of tenement retention in 2009. With these criteria, approximately 50% of the Folakara tenement (~200sq kms) and 25% of the Makay tenements (~750 sq kms) are being retained for 2009.
For further information contact:
For further information:
Annie Richards UMC Energy plc Tel: 020 7514 1480
Angela Peace Strand Partners Ltd Tel: 020 7409 3494
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