Henkries Project Update

RNS Number : 7730U

Niger Uranium Limited

30 June 2009

 



For immediate release                                                                                                                    30 June 2009

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

Henkries Project Update

The Board of Niger Uranium is pleased to announce a maiden resource estimate for Henkries Central and the completion of Phase-1 drilling at Henkries North.

• The MSA Group of Johannesburg, South Africa ('MSA') has estimated SAMREC-compliant undiluted resources for Henkries Central of 2.97 million lbs U3O8 in the Measured and Indicated categories at an average grade of 501 ppm U3O8, and an additional undiluted 1.5 million lbs U3O8 in the Inferred category at an average grade of 294 ppm U3O8 using a cut-off grade of 100 ppm U3O8. The resource figures at varying cut-offs are provided, on a gross basis, in Tables 1 to 3 below and the Company's net attributable share is given in Tables 5 and 6.
  

• All of the resource within MSA's model occurs within 20 metres of surface (using the 100 ppm U3O8 cut-off). Given the shallow and soft nature of the resource and the good infrastructure serving the project area, the Directors are optimistic that an attractive operating and capital costs can be supported. 

• At the Henkries North target the first phase of drilling is underway.

• On completion of the acquisition, Niger Uranium will hold a 74 per cent. interest in Namakwa Uranium (Proprietary) Limited (the 'Acquisition'), the holding company of the prospecting right PR 885/2007 within which the Henkries uranium project is located.

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

'The maiden resource confirms the favourable grade and low-strip ratio that Anglo reported in its Feasibility Study. In due course we would expect that this resource could be expanded by including the additional mineralised areas at Henkries Central and Henkries North.'

The following tables are extracted without material adjustment from the resource estimate prepared by MSA and set out the in-situ SAMREC compliant Measured, Indicated and Inferred Resources for Henkries Central on a gross basis. 

Table 1: SAMREC compliant Measured Resources (Gross) for Henkries Central

MEASURED
U3O8  Cut-off ppm	Resource Million Tonnes	Average Grade U3O8  ppm	U3O8   Million lbs
0	1.61	278	0.99
50	0.93	466	0.95
100	0.68	610	0.91
150	0.58	696	0.89
200	0.50	773	0.86
250	0.44	847	0.83
300	0.38	938	0.79

Table 2: SAMREC compliant Indicated Resources (Gross) for Henkries Central

INDICATED
U3O8  Cut-off ppm	Resource Million Tonnes	Average Grade U3O8  ppm	U3O8   Million lbs
0	6.99	158	2.43
50	3.23	316	2.25
100	2.02	464	2.06
150	1.54	569	1.93
200	1.36	622	1.86
250	1.16	691	1.76
300	1.04	739	1.69

Table 3: SAMREC compliant Inferred Resources (Gross) for Henkries Central

INFERRED
U3O8  Cut-off ppm	Resource Million Tonnes	Average Grade U3O8  ppm	U3O8   Million lbs
0	8.95	106	2.09
50	4.26	194	1.81
100	2.36	294	1.53
150	1.67	365	1.35
200	1.32	416	1.21
250	1.07	463	1.09
300	0.85	511	0.96

MSA's Resource Estimation Methodology

The estimate is based upon XRF data from a combined total of 11,930 metres of core drilling for 856 boreholes, of which 722 were drilled by Anglo Operations Limited ('AOL') between 1977 and 1979 and 134 were drilled by Niger Uranium recently. The AOL database was verified by a programme of twin-hole drilling at 22 sites across the deposit. The twin-hole data has been reviewed by MSA, who have concluded that the data strongly supports the uranium grades, thickness and geology contained in the historic database. 

The resource is hosted primarily by soft clay-rich sediments and overburden is mainly windblown sand and clay. MSA used Datamine mining software to model mineralised envelopes of the dominant host lithologies. Grade estimation was made using the inverse-distance squared approach and density contributions were calculated per lithological type. The latter will assist in determining metallurgical parameters per lithology. Data from 3857 individual density determinations was used to accurately assign density to each block within the resource model. 

Expansion of the Existing Resource

The resource estimate reported here does not include data from drilling completed at Henkries North and the lower layer at Henkries Central. The resource estimate also does not provide for potential geological losses. Once the results for all recently drilled boreholes are received, the Company can begin modelling and estimation of the potential resources contained in these target areas. 

At Henkries North a total of 2,044 metres of drilling (109 boreholes) has been completed to date, on an approximate 200 by 200 metre grid. Assay results for 6 of these boreholes were reported previously and results for an additional 8 have been received (as set out in Table 4 below). The drilling has defined 5 large 'pods' of clay and organic rich sediments very similar to those found at Henkries Central. 

Table 4:     Results of ALL boreholes reported by the laboratory to date, from Henkries North using a 50 ppm cut-off (NSI means 'no significant intersection'). Survey Positions for these holes are given in Table 7.

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
HNN005	6	7	1.00	88
HNN006	15.00	20.50	5.50	171
HNN008	4.50	6.45	1.95	51
HNN009				NSI
HNN012	0.00	8.30	8.30	300
and	20.39	24.10	3.71	180
HNN013	1.55	13.21	11.66	67
HNN019	1.50	5.80	4.30	324
HNN020				NSI
HNN027	20.50	21.50	1.00	197
HNN046				NSI
HNN060				NSI

As reported previously, borehole HC15200N-250E at Henkries Central intersected the upper mineralized layer and also a lower mineralized layer from 21.20 to 24.40 metres depth, comprised of clay and organic-rich lithologies. 18 boreholes totalling 524 metres, drilled on an approximate 250 by 250 metre grid, have now been completed to test this target. In all holes a 0.1 to 6.0 metre thick layer of clay-rich sediments similar to those of the upper layer (hosting the Henkries Central resource) was intersected. Results for these samples are expected early July.

Limited fieldwork at the Henkries South exploration target has identified near-surface indications of mineralisation. Grab samples from pits have returned between 0 and 406 ppm U3O8 using a hand-held XRF unit (a non-SAMREC compliant method of analysis). An 800-point radon survey commenced late June to define drilling targets within the 20 kilometre length of palaeochannel comprising Henkries South.

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 per cent. 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 therefore Niger Uranium's net attributable interest in the project is 64 per cent. Table 5 and 6 give the SAMREC compliant resources for this interest.

An application was submitted to the Department of Minerals and Energy (now the Department of Mining or Minerals) 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).  

Table 5: SAMREC compliant Net Attributable Measured and Indicated Resources for Henkries Central

MEASURED AND INDICATED
U3O8  Cut-off ppm	Resource Million Tonnes	Average Grade U3O8  ppm	U3O8  Million lbs
100	1.72	501	1.9

Table 6: SAMREC compliant Net Attributable Inferred Resources for Henkries Central

INFERRED
U3O8  Cut-off ppm	Resource Million Tonnes	Average Grade U3O8  ppm	U3O8  Million lbs
100	1.5	294	0.98

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, is the qualified person responsible for Niger Uranium and has supervised Mr. Mike Venter (Pr.Sci.Nat), Regional Consulting Geologist at MSA and Mr. Mike Hall (MAusIMM), Consulting Geologist at MSA, who verified the information contained in this announcement. Messrs Venter and Hall have 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. Neither Mr Wadley nor Mr Venter nor Mr Hall has any interest in the Company and each has consented to the inclusion in this announcement of his name in the form and context in which it appears. Messrs Wadley, Venter and Hall have confirmed that the information presented in this announcement is accurate, balanced and complete and consistent with the resource estimate prepared by MSA.

Contacts:

Niger Uranium Limited

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

Beaumont Cornish Limited                                        Tel: [phone]

Michael Cornish

Table  7:    Henkries North borehole survey positions. All are given as metres UTM zone 34 South. All boreholes were drilled vertically.

BH ID	Easting	Northing	Elevation	Depth of hole
HNN001	218130.2767	6793821.394	357.7016	23.75
HNN002	218313.5934	6794813.561	347.5473	20.55
HNN003	218505.5421	6794900.85	340.6345	20.6
HNN004	218513.1719	6795028.622	336.5902	23.45
HNN005	218472.1889	6796282.331	305.7009	23.45
HNN006	218402.1539	6796399.347	303.1973	23.45
HNN008	218399.714	6796794.162	300.2739	20.6
HNN009	218398.0649	6796202.476	306.1393	23.65
HNN012	218548.9097	6794792.61	346.7286	32.7
HNN013	218799.1053	6794801.154	346.4685	23.5
HNN019	218193.0297	6794795.682	348.503	18
HNN020	218002.2716	6793801.953	358.8864	24.1
HNN027	218199.164	6793600.248	365.7917	30.05
HNN046	218697.2572	6797800.717	260.4418	23.85
HNN060	218603.2763	6797194.732	277.7866	23.85

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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