NIMRODEL RESOURCES LIMITED (ASX:
NMR)
ASX Release
- 19 May 2009
NIMRODEL SIGNS HEADS OF AGREEMENT TO ACQUIRE ADVANCED KAMUSHAN URANIUM
PROJECT, KYRGYZSTAN
CURRENT JORC RESOURCE OF 2.5Mlb WITH POTENTIAL TO BE IN PRODUCTION BY
2010
SIGNIFICANT SCOPE FOR INCREASING THE CURRENT RESOURCE
HIGHLIGHTS
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Heads of Agreement signed with private UK-based
company, Pangaea Energy Ltd, for the option to purchase 80% of the Kamushan Uranium Project, Northern Kyrgyzstan
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2.5mlb of Indicated and Inferred JORC-compliant
Uranium resources at 370ppm within 3.4 metres from
surface on average
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Recently completed additional drilling indicates
potential to significantly expand the resource base
�
Short-term reclassification and increase of the
current resource is expected on completion of a bulk density measurement programme
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Project located close to quality infrastructure
including town of Kamushan and nearby Kara Balta uranium processing facility
60km to the south
�
Recent modeling by Pangaea (subject to due diligence)
estimates that the project can be built by H2 2010 for US$13 million with
extraction and processing costs of between US$10-12/lb
International mining company Nimrodel Resources
Limited (ASX: NMR) is pleased to announce that is has signed a Heads of
Agreement ("HOA") with private UK-based company Pangaea Energy Ltd
("Pangaea"), for the Option to Purchase ("Option") 80% of
the Kamushanovskoe Uranium Project ("Kamushan"), located near
the Kyrgyzstan capital of Bishkek. The option also includes the acquisition of
the 720km� Jetym uranium exploration lease in eastern Kyrgyzstan.
The deal will give Nimrodel the option to purchase
Pangaea's advanced uranium project in Kyrgyzstan following completion of a 90
day due diligence period, and will enable Nimrodel to increase the Company's
asset base in Kyrgyzstan, which now includes uranium and gold projects at
various stages of development.
Pangaea have reported that the Kamushan Uranium
Project has produced positive metallurgical results and with the
possibility for Nimrodel to commence initial production as early as 2010. The
project is expected to bring solid early revenue streams with minimal up-front
capital requirements (current Pangaea estimate of US$13m), representing a
veryearly payback period.
Nimrodel will acquire the project in two stages:
Stage One - Due Diligence and Option to Acquire
Stage One of the transaction will commence immediately
with the payment of an Option Fee of US$100,000 to Pangaea's 100%-owned
subsidiary, IMC Resource Holdings (Hong Kong). Additionally, Nimrodel will fund
bulk sampling costs (expected to be <A$10,000) to re-classify and increase
the current JORC resource.
The 90 day option period will comprise of 60 days of
actual due diligence following a notice period of 30 days from the date of the
Heads of Agreement, during which time an option agreement is expected to be
signed. The Company anticipates being in a position to commence formal due
diligence at the end of May 2009.
If Nimrodel does not proceed to Stage Two (detailed
below), Nimrodel will retain a 1.5% interest in IMC Resource Holdings (Hong
Kong) or will, at Pangaea's discretion, receive its money back.
Stage Two - Acquisition and Commencement of Bankable
Feasibility Study
Following a successful due diligence programme, the
second stage of the transaction will involve the issue to Pangaea of up to 30
million ordinary Nimrodel shares and 15 million options (exercisable at 20
cents per share) to Pangaea. The share consideration will not exceed 19.9% of
the issued capital of Nimrodel at the time of EGM approval.
Following approval by Nimrodel shareholders, Nimrodel
will then fund a Bankable Feasibility Study (BFS), on-going exploration
activities to expand the resource and overheads until end March 2010 up to a
total of US$1.5m. The BFS is estimated to take approximately 6 months to complete.
After completion of the BFS or expenditure totaling US$1.5m, costs will be
shared proportionately, but funded by Nimrodel via a loan to the 20% minority
(Minority Loan), bearing interest at commercial rates.
Upon completing a minimum capital raising of US$1m,
Nimrodel will formally acquire a 100% interest in IMC Resource Holdings (Hong
Kong) which holds an 80% interest in the Kamushan and Jetym Uranium Projects
via IMC Resources CJSC Kyrgyzstan. Nimrodel will have a majority representation
on the Board of IMC Resources CJSC.
Subject to the commencement of Stage 2, it is
anticipated that the Acquisition will be completed by the end of August 2009.
Production
Upon commencement of commercial production, a one-off
production bonus of US$2.5m (less the Minority Loan)will be paid to Pangaea in
the form of equity in Nimrodel. This payment will be made on a VWAP (Volume
Weighted Average Price) of Nimrodel shares and is subject to prior repayment of
the minority completion loans.
Project Background
The Kamushan Uranium Project in Northern Kyrgyzstan
contains 2.5mlbs of Indicated and Inferred at-surface JORC-compliant uranium
resources at 370ppm U3O8 with significant expansion
potential (P. Jones - 29/04/08).
Importantly, the uranium is in soft ore and located
within 3.4m, on average, from the surface. There is also significant expansion
potential (to several multiples of current resource) within the Exploration
Licence, which covers an area of over 500km�.
In recent modelling, Pangaea has calculated that the
project can be built by H2 2010 for approximately US$13m by utilising existing
uranium processing facilities nearby. With extraction and processing costs of
US$10-12/lb, the project has robust economics and for this reason it is
expected that the entire resource can be economically extracted. These
estimates and the basis for them will be reviewed as part of the due diligence
program.
Kamushanovskoe is on the doorstep of the town of
Kamushan, and has all necessary infrastructure, including rail hub and uranium
processing facilities located just 60km's away on sealed roads.
SUMMARY
Commenting on the agreement, Nimrodel's Managing
Director, Mr. John Hebenton said: "We are very pleased to have signed
this agreement with Pangaea. The project is a good fit for us and can be
developed in parallel with our ongoing gold and uranium exploration activities
within the region.
"The deal gives Nimrodel access to an advanced
uranium project with near-surface deposits in close proximity to existing
uranium processing facilities and infrastructure; it ticks all the boxes
in terms of what we were looking for including short-term production and
significant expansion potential" he added.
"Development of Kamushan increases Nimrodel's
exposure to this richly mineralised region, and provides the opportunity for
further exploration in an area that, by modern standards, has been poorly
explored and under-developed .."
The initial focus of development at Kamushanovskoe will
be to complete due diligence and the subsequent BFS ahead of the commencement
of production in 2010. The Project is viewed by the Company as a key strategic
vehicle to building on Nimrodel's profile in Central Asia as a diversified
mineral exploration company.
- ENDS -
Enquiries:
John Hebenton, Managing
Director
Mobile: +61 (0) 418 962 879
Email: johnh@liniaprava.com.au
Damian Delaney, CFO
Mobile:
+61 (0) 438 921 666
Email:
damiand@nimrodel.com.au
About Nimrodel
Nimrodel Resources is an international exploration company
which is developing a portfolio of highly prospective, uranium, precious and
base metals projects in Kyrgyz and Australia. The Company has three core
projects: the Batken Province and Tyuz-Ashuiskaya
Projects in Kyrgyzstan and the Buckaroo Project in Australia.
The Batken
Oblast Project covers 1,946 km� and encompasses a highly prospective area with
geology similar to that of the Mailuu-Suu Uranium
Mine, which historically produced approximately 10,000 tonnes
of high-grade uranium. The leases are in the Fegrana
Basin, within 10km of an existing uranium plant at Hojent
in Tajikistan and within 45-100kms of former Soviet uranium mines, including Mailuu-Suu and Tuya Muyun.
The Tyuz-Ashuiskaya
Exploration Licence, which is located in the
gold-rich Chatkal region of Western Kyrgyzstan, is an
under-explored area which includes the Sarayay-Tyllyaberdy
gold deposit - a 7.5 kilometre long zone of surface
gold mineralisation.
Based on historical information
including extensive surface trenching results, the Company considers that there
is potential to define a substantial gold resource of over 500,000oz of
high-grade gold at grades in excess of 5g/t Au.
Competent Persons
Statement
The information in this report that relates to
exploration, mineral resources or ore reserves is based on information compiled
by Mr Anthony Martin (B.Sc.Hons.)
who is an employee of Nimrodel Resources Limited and
is a member of the AusIMM. Mr
Martin 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
described by the 2004 Edition of the "Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves". Mr Martin consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.