News

RNS Announcements

Discovery of Two New Uranium Prospects and Extensions to the Uranium Mineralisation in Southern Tanzania

18 Jan 2008

Overview

• Regional helicopter reconnaissance has discovered two new uranium prospects within the Company's 50:50 joint venture exploration area:
• The Foxy prospect at the Ruvuma project area returned a grab sample assay result of 13,400ppm U3O8 (1.34%); and
• The Eland prospect at Ruvuma project returned grab sample assay results of 1,080ppm U3O8 (0.108%), 440ppm U3O8 (0.044%) and 141ppm U3O8 (0.014%)
• Subsurface uranium identified in drilling at Mtonya (URA 60:40 WMT) over a strike length of 4km. October Reverse Circulation drilling delivered significant intercepts including:
• 4 metres at 737ppm U3O8 (0.074%) from 44 metres
• 1 metre at 1140ppm U3O8 (0.114%) from 25 metres
• 2 metres at 970ppm U3O8 (0.097%) from 20 metres
• 3 metres at 216ppm U3O8 (0.022%) from 61 metres
• Aggressive 2008 exploration programme in place to further progress Tanzanian uranium properties

Uranium Resources plc, the AIM listed uranium exploration company, has discovered two new uranium prospects at its Tanzanian properties and received further positive drilling results from previously intersected uranium mineralisation at its flagship Mtonya Project which now has identified subsurface uranium over a strike length of 4km.

URA Director James Pratt said, "These two new discoveries, in conjunction with the continuing positive drill results from our flagship Mtonya project, act as a further endorsement of the exciting potential of our Tanzanian portfolio to host a significant uranium deposit."

New Discoveries

The results from the regional helicopter supported field reconnaissance programme conducted in November 2007 have resulted in the discovery of two new important mineralised systems, Foxy and Eland, in the 50:50 owned Ruvuma project area (formerly Ruvuma). These prospects are located approximately 60km south-east and 110 km south-west of Mtonya respectively.

Foxy
The mineralisation which occurs at the Foxy prospect is related to a hematised sandstone bed which is exposed over an area of approximately 0.5km2. Counts up to 20,000 counts per second ("cps") were found in association with abundant yellow secondary uranium mineral, uranophane. In addition, a grab sample taken from the eastern edge of the anomaly returned an assay result of 13,400ppm U3O8 (1.34%).

Eland
The Eland Prospect mineralisation is associated with a light coloured segregation in a banded leuco gneiss. The 50:50 Joint Venture has located an airborne anomaly approximately 0.6km2 with hotspots up of up to 4,000cps. Brief ground reconnaissance has yielded a best grab sample assay result of 1,080ppm U3O8 (0.108%). Other results include 440ppm U3O8 (0.044%) and 141ppm U3O8 (0.014%).

SEM-EDAX analysis has confirmed the bulk of the uranium in the gneiss is associated with a uranium-rich pyrochlore. The pyrochlore is closely associated with biotite and zircon and the uranium averages 16% by weight. The presence of uranium-rich pyrochlore in a single sample of fresh rock at the Eland prospect is a highly compelling find, worthy of more detailed geological evaluation and drilling.

The discovery of a new type of uranium mineralisation in the basement rock in south west Tanzania is extremely encouraging. The potential presence of this type of mineralisation opens up a number of possibilities and warrants the re-evaluation of a number of highly significant airborne radiometric anomalies that were previously downgraded and dismissed as anomalous basement.

Mtonya Uranium Project

Results from the third Reverse Circulation ("RC") drilling programme at Mtonya have delivered further significant intercepts and extended the area of subsurface uranium mineralisation. Significant intercepts from the October drill programme include:

• 4 metres at 737ppm U3O8 (0.074%) from 44 metres
• 1 metre at 1,140ppm U3O8 (0.114%) from 25 metres
• 2 metres at 970ppm U3O8 (0.097%) from 20 metres
• 3 metres at 216ppm U3O8 (0.022%) from 61 metres

The Joint Venture has now planned an aggressive expansion and development programme for its Tanzanian uranium properties over 2008. The Joint Venture budget is expected to be in the order of $4 million during which Western Metals will achieve 60% ownership of the Company's farm-in tenements by circa June 2008.

After Western Metals has earned its 60% interest in the farmin tenements, Uranium Resources intends to contribute its 40% share of exploration expenditure. Uranium Resources also plans to contribute 50% of exploration costs on the balance of tenements, which include the two new discoveries.

The planned programme will include RC drilling, airborne radiometric, ground based geological, geophysical and geochemical surveys.

A copy of Western Metals' announcement can be found on Uranium Resources' website. This announcement includes a number of diagrams and photographs which may assist in the understanding of this announcement.

Notes on Table: All drilling vertical. Samples have been collected by riffle splitting dry intervals and representative tube sampling of wet intervals. Samples have been analysed by ICP using laboratory method ME-ICP61s by ALS Chemex laboratory Perth Australia. Samples greater that 10,000 ppm U3O8 have been analysed by XRF using method ME-XRF10s. Certified reference standards and blanks have been included by Western Metals in addition to laboratory control standards. All results are in U3O8 ppm with analysis method accuracy quoted at ? 10 ppm U3O8. Co-ordinates are WGS84 and have been measured by hand held GPS. All intersection lengths are estimated to be true width of mineralisation based on local geological observation. Results in grey have previously been reported.

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and/or assessed by Dr Joseph Drake-Brockman who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Drake-Brockman is employed by Drake-Brockman Geoinfo Pty Ltd. Dr Drake-Brockman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Drake-Brockman consents to the inclusion in this announcement of the matters based on his assessment of the available information in the form and context in which it appears.

-End-

For further information please visit www.uraniumresources.co.uk or contact:
James Pratt	Uranium Resources plc	T: +61 412 743 382
Ross Warner	Uranium Resources plc	T: 07760 487 769
Hugh Warner	Uranium Resources plc	T: +618 9217 3350
Hugh Oram	Nabarro Wells & Co. Limited	T: 020 7710 7400
Hugo de Salis	St Brides Media & Finance Ltd	T: 020 7242 4477
Felicity Edwards	St Brides Media & Finance Ltd	T: 020 7242 4477

Notes to editors

Uranium Resources plc is an AIM listed uranium exploration and development company focused in Southern Africa. The Company has primarily concentrated on expanding and developing its portfolio of uranium licences in the highly prospective Karoo Basin in Southern Tanzania where it currently has a land package in excess of 13,500 sq km.