Henkries Project Update

RNS Number : 8038R

Niger Uranium Limited

07 May 2009

 



For immediate release                                                                                                                      7 May 2009

Niger Uranium Limited 
('Niger Uranium' or the 'Company')

Henkries Project Update

Niger Uranium is pleased to announce further encouraging drilling results at its Henkries Central deposit, with individual sample assays up to 5.14 kilograms per tonne U3O8 as well as indications of a new and deeper mineralised zone. The Company has also has received promising initial results from the Henkries North exploration target.

• An additional 12 boreholes have been drilled at Henkries Central, with 11 of these containing significant mineralisation. Results for all 12 boreholes are listed in Table 1. 

Highlights include:

• HC15200N-50E: 5.95 metres @ 660 ppm U3O8 from a starting depth of 8.60 metres 

• HC12700N-150W: 2.54 metres @ 1318 ppm U3O8 from a starting depth of 0.50 metres

• HC15000N-100W:  7.28 metres @ 325 ppm U3O8 from a starting depth of 5.72 metres

• HC12450N-250W: 4.80 metres @ 483 ppm U3O8 starting at surface.

• The mineralisation is hosted in soft organic-rich material, clay and diatomaceous earth, and is mostly  located within 5-6 metres from surface. The highest grade individual sample returned 5141 ppm U3O8 over a 0.3 metre interval.

• At the Henkries North exploration target, a total of 1638 metres (79 holes) has been drilled to date, providing a preliminary interpretation of the extent of mineralization. Five 'pods' containing similar host lithologies have been interpreted along a 5 kilometre strike section of the Koa River palaeo-channel. Results for 6 holes have been received to date and are listed in Table 2.

Highlights include:

• HNN001: 13.10 metres @ 177 ppm U3O8 from a starting depth of 2.4  metres 

• HNN002: 7.30 metres @ 366 ppm U3O8 from a starting depth of 1.0 metres

• HNN004: 8.50 metres @ 587 ppm U3O8 from a starting depth of 0.5 metres

• Two 'deep' holes were drilled at Henkries Central to test the possibility of lower, previously undetected mineralization.  One of the holes, HC15200N-250E, intersected a second zone of mineralization from 21.20 to 24.40 metres depth. Testing with a portable XRF device (not an acceptable means of chemical analysis under the SAMREC code) returned a peak value of 1068 ppm U3O8. The significance of this intersection will be tested with further drilling and laboratory XRF analyses.

Ian Stalker, Executive Director and Acting Chief Executive Officer, said:

'These ongoing drilling results illustrate that the Henkries deposit contains some excellent close-to-surface grades. The Directors believe that the free-dig nature of the ore and the available infrastructure (existing powerline and water within 5 kilometres) set this project apart from other projects with similar grades. The encouraging results at Henkries North and the possibility of a deeper mineralised zone at Henkries Central support our confidence in this project'.

Henkries Central Drilling 

365 metres of drilling (24 boreholes) has been completed to date at Henkries Central. The results for the first 12 boreholes were reported in an earlier announcement dated 12 March 2009. The results of the latest 12 boreholes are discussed here and are reported in Table 1. Boreholes were drilled vertically, using the Sonic Coring method and positioned at widely spaced intervals (200 to 800 metres) along the length of Henkries Central. Mineralised sediments were intersected in all of these holes, comprising a package of clay, organic material and diatomaceous material up to 6 metres thick. A complete list of coordinates for the latest 12 holes is provided in Table 3. Half-core samples were submitted to SGS Lakefield in Johannesburg for preparation and analysis of U3O8 by XRF. Industry-standard quality control measures were taken and data found to be acceptable.

Table 1 - Results of the latest 12 boreholes drilled at Henkries Central (primary intervals calculated by applying a 50 ppm cut-off)

BH ID	From (m)	To (m)	Thickness (m)	XRF U3O8 (ppm)
HC12600N-50E	1.20	3.04	1.84	24
HC14900N-50E-B	5.70	8.74	3.04	453
including:	6.82	8.36	1.54	701
HC14900N-50W-B	5.50	8.30	2.80	253
HC15200N-50E	8.60	14.55	5.95	660
including:	12.40	13.60	1.20	2421
HC15000N-100W	5.72	13.00	7.28	325
HC12700N-150W	0.50	3.04	2.54	1318
including:	2.09	2.80	0.71	3939
HC12450N-250W	0.00	4.80	4.80	483
including:	2.54	3.44	0.90	1168
HC10750N-00	0.00	2.10	2.10	542
including:	0.00	1.52	1.52	728
HC10600N-50W	2.03	4.50	2.47	204
HC14100N-100E	0.00	1.00	1.00	418
HC12650N-250W	3.60	5.00	1.40	543
HC13500N-100E	1.50	2.50	1.00	524
including:	1.50	1.90	0.40	1024

Henkries North Exploration Target

At Henkries North a total of 1638 metres of drilling (79 holes) has been completed to date, on an approximate 200 by 200 metre grid. Five 'pods' containing fine grained sediments comprised mostly of clay and organic material have been interpreted as being potentially uranium-bearing. Pods appear to range in size from 400 to 1000 metres in length and from 250 to 650 metres in width. The thickness of mineralised layer in these holes ranges from 1.95 to 13.10 metres. Assay results for 6 boreholes have been received to date and are shown in Table 2. 

Table 2 - Results received from Henkries North drilling to date (primary intervals calculated by applying a 50 ppm cut-off).

BH ID	From (m)	To (m)	Thickness (m)	XRF U3O8 (ppm)
HNN001	2.40	15.50	13.10	177
HNN002	1.00	8.30	7.30	366
HNN003	5.35	9.50	4.15	160
HNN004	0.50	9.00	8.50	587
HNN006	15.00	20.50	5.50	171
HNN008	4.50	6.45	1.95	51

New mineralised zone beneath Henkries Central

Limited historical work suggests that paleochannel sediments may extend significantly deeper than the historically defined resources. The previous operators, Anglo Operations Limited (AOL) did not drill many holes deeper than the targeted near surface mineralised layers, with most holes being terminated at a final depth of 12 to 15 metres. Late in March 2009, Niger Uranium drilled two 'deep' boreholes at Henkries Central, to test the possibility for additional deeper mineralised zones. HC12700N-125W was drilled to a final depth of 51m and ended in gritty material assumed to be weathered bedrock, without intersecting any noteworthy mineralisation at depth (based on portable XRF). The second deep hole HC15200N-250E, drilled 2400 metres to the northwest of the first, intersected a mineralized layer from 21.20 to 24.40 metres depth, and comprised of clay and organic-rich lithologies. The portable XRF unit (not an acceptable means of chemical analysis under the SAMREC code) gave a peak grade of 1068 ppm U3O8 within this interval. It is premature to speculate on the significance of this new, deeper intersection, but several ''step-out' holes are planned to test its lateral and vertical extent. 

Pre-Feasibility Study and Resource Estimation

In light of recent significant intersections at the Henkries North exploration target and the potential additional mineralised zone beneath Henkries Central, Niger Uranium has decided to postpone the commencement of the Pre-Feasibility Study ('PFS') until the fourth quarter of 2009. The Directors believe that this will give the Company sufficient time to establish the extent of the resources potentially present at Henkries Central and Henkries North. This information will then form the basis of the PFS. In preparation for the PFS, a project engineer is to make a thorough review of the 1979 AOL Feasibility Study, focussing on metallurgical aspects. A programme of batch test-work on 5 x 120 kilogram samples is planned to commence in June 2009. In 1978 AOL completed a pilot scale programme that processed 37 tonnes of ore to produce ammonium di-uranate (yellow cake) of purity 87.5% U3O8  and assumed a conservative overall uranium recovery of 81 percent. Resource modelling and estimation of the Henkries Central Resource is ongoing: the process of verification of the AOL drilling database is taking longer than anticipated due to suspected high intra-formational grade variability (nugget effect).

Share Purchase Agreement and Section 11 transfer

As previously announced on 1 September 2008, Niger Uranium signed a share purchase agreement for the acquisition of 100 per cent of URU Henkries Limited from Aardvark Uranium Limited. On completion of the acquisition Niger Uranium will have a 74 percent interest in Namakwa Uranium (Proprietary) Limited, the holding company of the prospecting right PR 885/2007 which includes the Henkries uranium project. The remaining 26 percent of Namakwa Uranium will continue to be held by BEE partner, Gilstra Exploration cc. AOL has a 10 per cent free-carry interest in the Henkries Project.

An application was submitted to the Department of Minerals and Energy on 31 October 2008 for the approval of the transfer to URU Henkries of the Namakwa shareholding, as required by Section 11 of the Mineral and Petroleum Resources Development Act, 2002 (MPRDA).  

Qualified Person

The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the 'SAMREC Code') sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South Africa. The information contained in this announcement has been presented in accordance with the SAMREC Code.

Mr. Richard Wadley (Pr.Sci.Nat), Principal Consultant at MSA Geoservices, is the qualified person responsible for Niger Uranium and has supervised Mr. Mike Venter (Pr.Sci.Nat), Regional Consulting Geologist at MSA Geoservices, who verified the information contained in this announcement. Mr. Venter has visited the project site to review drilling, sampling and other aspects of the work relevant to this announcement and found all aspects to be acceptable under the requirements of the SAMREC Code. Each of Mr Wadley and Mr Venter has no interest in the Company and has consented to the inclusion in this announcement of his name in the form and context in which it appears.

Borehole collar positions 

A summary of the borehole positions is set out in Table 3 below. Boreholes indicated 'survey' were surveyed by a qualified land surveyor to within 0.1 metre accuracy. Boreholes indicated 'GPS' were surveyed from hand-held GPS, accurate to within 10 metres, pending formal surveying. All are given as metres UTM zone 34 South. All boreholes were drilled vertically.

Table 3 - Borehole Positions. 

BH ID	Easting (m)	Northing (m)	Elevation (m)	Method
Henkries Central
HC12600N-50E	220624.9659	6790344.333	422.9571	survey
HC14900N-50EB	219090.5846	6792064.939	396.6733	survey
HC14900N-50WB	219016.351	6791996.605	397.1314	survey
HC15200N-50E	218894	6792288	393	GPS
HC15000N-100W	218916.25	6792037.40	395.47	survey
HC12700N-150W	220406.60	6790290.74	418.44	survey
HC12450N-250W	220501.55	6790035.35	422.79	survey
HC10750N-00	221819.84	6788932.22	441.10	survey
HC10600N-50W	221878.20	6788785.23	445.36	survey
HC14100N-100E	219663.24	6791499.92	400.69	survey
HC12650N-250W	220365.78	6790186.23	421.16	survey
HC13500N-100E	220061.90	6791054.03	409.62	survey
Henkries North Exploration Target
HNN001	218130.28	6793821.39	357.70	survey
HNN002	218313.59	6794813.56	347.55	survey
HNN003	218505.54	6794900.85	340.63	survey
HNN004	218513.17	6795028.62	336.59	survey
HNN006	218402.15	6796399.35	303.20	survey
HNN008	218399.71	6796794.16	300.27	survey
Henkries Central 'deep boreholes'
HC12700N-125W	220428	679304	451	GPS
HC15200N-250E	219043	6792422	395	GPS

Contacts:

Niger Uranium Limited

Ian Stalker, Executive Director and CEO        Tel: [phone]

Beaumont Cornish Limited                   Tel: [phone]

Michael Cornish

Glossary

Aeolian                            Windblown

Anglo Operations             A subsidiary of Anglo American South Africa.

Limited

Assay                               To determine the concentration of the economic commodity, using an analytical technique

                                       such as X-ray fluorescence (XRF).

carbonaceous earth            A soft peat-like material comprised mostly of organic material.

Cut-off grade                   The minimum grade intersection used for reporting and resource estimation. The cut-off

                                       grade is normally chosen with consideration of the operating cost per tonne of ore.

diatomaceous earth           A sediment formed in freshwater lakes comprised mostly of fossilized remains of diatoms, a

                                       type of hard-shelled algae. In this case the diatomaceous earth also contains some clay and silt.

Fluvial sand                      Sand deposited in a river or stream.        

Free-dig                          Overburden and ore that is sufficiently soft that it can be excavated without any blasting.

                                      Normally excavators or bull-dozers are used to dig the material.

Grade                             The concentration of the economic commodity within the ore, in this case expressed as parts

                                       per million (ppm). 

Lbs                                 Pounds, an imperial unit of mass: 1 lb is equal to 0.454 kilograms.

Mineralisation                  The concentration of minerals in a body of rock. 

Palaeochannel                  A 'fossil' or inactive drainage channel containing sediments that were deposited under a

                                      previously active sedimentary environment.

ppm                               Parts per million, equal to gram per tonne. 1 ppm = 1 gram per (metric) tonne.

Pre-feasibility study          An assessment of the economic viability of a potential mining project to a reasonable to high

                                     level of confidence, normally preceding a Definitive Feasibility Study.  The study must consider

                                     all aspects of the project, including mine and processing plant design, waste disposal,

                                     environmental management and permitting. 

Recovery                        In this case meaning metallurgical recovery which is the proportion of the uranium that can be

                                     extracted by metallurgical processing of the ore, expressed as a percentage. 

Reef                               A term use to describe a layer or sequence of layers which contain mineralization, typically

                                     applied to tabular ore-bodies.

Resource                        The term 'Mineral Resource' covers the in-situ mineralisation which has been identified and

                                     estimated through exploration/assessment and sampling; and from which Mineral Reserves may

                                     be derived by the application of technical, economic, legal, environmental, social, marketing,

                                     governmental and political factors.

Stripping ratio                 The ratio between the volume of tonnage of waste and ore that must be removed in an open

                                                   pit. A lower stripping ratio means that less waste has to be removed to expose the ore for

                                      mining and generally results in a lower operating cost. For example a ratio of 10:1 means that

                                      the volume of waste (overburden) that must be removed is ten times the volume of the ore

                                      beneath.

SAMREC                       South Africa's internationally accepted code for the reporting of Mineral Resources and Mineral

                                      Reserves as prepared by the SAMREC committee under the auspices of the South African

                                      Institute of Mining and Metallurgy. Historical estimates may be accurate but until verified under

                                      the current code, are termed non-code compliant or non-compliant.

Sonic Drilling                   A drilling method that utilises high frequency mechanical vibrations to advance through

                                      unconsolidated material and enable the collection of continuous core samples.

Strike length                     In this case the length of the long axis of the deposit, controlled by the orientation of the

                                       paleochannel.

U3O8                              Triuranium octaoxide. 1 ppm U308 = 0.848 ppm U.

X-ray fluorescence            (XRF) is the emission of characteristic 'secondary' (or fluorescent) X-rays from a material that

                                       has been excited by bombarding with high-energy X-rays or gamma rays. The phenomenon is

                                       widely used for elemental analysis and chemical analysis.

Forward Looking Statements:

This press release contains statements that are 'forward-looking'. Generally, the words 'expect,' 'intend,' 'estimate,' 'will' and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are 'forward looking' statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

ENDS

 

END

 

 

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