Hi there,

Please see RFC Ambrian's morning comment highlighting Uranium Resources as a speculative BUY on the back of the Company defining a maiden resource of 3,583,000t at 255ppm containing 2.14Mlb U₃O₈  at its flagship Mtonya uranium discovery project in Tanzania, confirming the country as an emerging new in-situ recovery uranium district (In-situ recovery is the lowest cost and most environmentally benign method of uranium extraction).

The roll-front widths, thicknesses and grades seen at Mtonya are remarkably similar to other world-class roll-front deposits including those found in Wyoming's Wind River Basin and Powder River Basin where Cameco and Uranium One operate successful ISR facilities, again highlighting the exciting potential of URA's project. 

The maiden resource only covers an area of less than 70km² out of the company's 625km² Mtonya group of tenements (less than 10%).  Further infill drilling within the resource area and lateral extension of known mineralisation expected to substantial increase resources in the future.

Kindest regards

Felicity

Uranium Resources (URA)

Price: 1.9p   Target Price: NR   Recommendation: Speculative Buy   Market Cap: ?14.4m

Maiden Resource at Mtonya

Uranium Resources has announced that a maiden National Instrument 43-101-compliant Mineral Resource estimate has been completed for its 100%-owned Mtonya uranium deposit, which is located 100km east of Songea in southern Tanzania. The Mineral Resource estimate was prepared by Roscoe Postle Associates Inc (RPA) of Toronto, Ontario. Highlights included:

?          Maiden CIM Inferred Resource estimate of 3,583,000t @ 255ppm containing 2,014,000lb U₃O₈.

?          The resource estimate was mostly comprised of Tier 1 mineralisation (within 260m of surface) where drill spacing was sufficiently dense for an Inferred Resource estimate.

?          Tier 1 mineralisation is open in all directions. Equally encouraging mineralisation in Tiers 2 (260-350m) and 3 (deeper than 350m) represents future exploration potential.

?          Exploration drilling currently covers an area of less than 70km² out of the company's 625km² Mtonya group of tenements, which also host Nyoka, immediately adjacent to Mtonya, and Lukimwa, a second priority roll-front uranium target some 27km south-west of Mtonya.

?          All diamond drilling at Mtonya is widely spaced and mineralisation is open in all directions, including Tiers 2 and 3.

?          The internal studies of lithology and mineralogy carried out on samples of mineralised drill core suggest similarities with the uranium deposits of Kazakhstan and Wyoming, US.

?          RPA recommends a considerable budget to explore and assess the potential on the property.

Comment

This was a positive development for URA as it has demonstrated a Maiden Resource at Mtonya. Whilst we expected this initial resource to be small, it does effectively show 'proof of concept' for potentially economic roll-front uranium deposits at the project. This represents an important step in bringing the project forward. The grades and widths in this resource are very similar to those seen at the Powder River Basin deposits in Wyoming.

The plan is to extract the uranium through in situ recovery (ISR) and the delineation of a resource is a key outcome to progress management's long-term development strategy. The bulk of the resource is located below the water table in geology that looks very suitable for ISR extraction.

As we have stated before, we feel that the degree of drilling required to prove up a sizeable resource is beyond the scope of URA at present. The company expects that the proof of resources in an exciting and emerging uranium province will attract the attention of potential strategic investors.

Recommendation

We continue to rate Uranium Resources as a SPECULATIVE BUY. We believe the roll-front uranium mineralisation has real potential.

RFC Ambrian acts as Nomad and Broker to this company

Metals & Mining Research

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