Uranium Resources On Course for Maiden Resource Estimate

PUBLISHED: 23 Jul 2012 @ 22:56 | Comments (0) | More info about Kenneth G. Mondero

Uranium Resources plc (LSE:URA) said the company is “on course” to release its first JORC-compliant resource by the first quarter of 2013, following its fifth update on the company’s 100% owned Mtonya Project in Tanzania.

In a statement released earlier today, the uranium explorer reported “significant intercepts” after drilling a total of 16,500 metres, including 650 parts per million (ppm), 841 ppm, and 1,869 ppm of uranium mineralisation on the 1,200-square kilometre acreage.

The company plans to drill about 20,000 metres of open hole and diamond core drilling for its 2012 programme, following the 7,950-metre diamond scout programme it had in 2011.

“Our drilling campaign has been progressing well ahead of schedule and under budget and we are on course to define a maiden JORC-compliant resource by Q1 2013,” said Uranium Resources’ Managing Director Alex Gostevskikh, who also said a fourth rig will be mobilised next month.

In-Situ Recovery

Mr. Gostevskikh further noted that the Mtonya acreage is amenable to in-situ recovery based on similarities in the characteristics with the assets of Cameco and Uranium One, two of the world’s largest uranium producers that operate in-situ recovery facilities.

“The recent results further validate our exploration model for Mtonya where we are exploring for a significant sandstone-hosted deposit amenable to in-situ recovery.”

In-situ leaching is one of the three ways of extracting uranium ore and is the cheapest and the most environmentally sound, according to the company.

“The Company is now executing in-fill drilling to continue the improvement in grades and thickness”, the report read, adding that the initial interpretations “may significantly underestimate uranium grades”.

Uranium Resources has only touched tier 1 of the acreage, or at depths between 120 metres to 220 metres, with deeper tiers 2 and 3 still “valid exploration targets for future drilling”.

At one point, shares of Uranium Resources lead the top gainers in London trading, gaining 24.4% to 2.8 pence a share by 1:50 PM GMT, as the latest update was well received by the market.

Company Spotlight

Uranium Resources plc is a Tanzania-focussed uranium exploration company incorporated in England. The company has three exploration projects; Ruvuma, Ruhuhu, and Mtonya, which is currently the main focus of operations.

The company joined the Alternative Investment Market in 2005.

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