SAN Nickel Joint Venture Update

RNS Number : 9692R

URU Metals Limited

14 November 2011

 



For immediate release                                                                                                    14 November 2011

URU METALS LIMITED

("URU Metals" or "URU" or "the Company")

SAN Nickel Joint Venture Update

 Ongoing Drilling Continues to confirm large disseminated nickel resources at Burgersfort and Zebediela nickel projects, South Africa

Highlights

·     Additional drilling results confirm the presence of large potentially open pittable disseminated sulphide nickel resources at both the Burgersfort and Zebediela projects.

·     At the Burgersfort target, the current drilling programme is focused on an area in the north of the project area. Thirteen boreholes have been completed to date and the last borehole in this campaign will be finalised during November 2011.  Results of the first five boreholes are reported here.

·     At the Zebediela target, the drilling results confirm that Zebediela is continuous in a north-west, south-east direction for more than 3,000metres with an average width of more than 1,000 metres. Sixteen boreholes totaling 4,969 metres have been drilled completing this campaign.  The results of the first ten boreholes are reported here.

·     Assay results of the remaining fifteen boreholes at Burgersfort and Zebediela completed to date have not been received and these will be announced as soon as they become available.

·     Work on both projects is now focused on optimising metallurgical test work to make a saleable nickel concentrate.

Commenting on the latest drilling results from the Burgersfort and Zebediela nickel targets, Paul Loudon, Non-Executive Chairman of URU Metals, said:

"The results continue to be extremely pleasing and indicate that both Burgersfort and Zebediela have the potential to host considerable sized open pit disseminated sulphide nickel resources.  I am also pleased to announce that Mr. Herculus Jacobs, a highly experienced metallurgical engineer, has joined the joint venture team full time and will head up all metallurgical aspects on both targets"

Background

URU Metals, the exploration and development company with uranium interests in Niger and South America, and nickel interests in Southern Africa, announces additional diamond drilling results on two of its nickel targets which confirm the presence of large potentially open pittable disseminated nickel sulphide resources. 

The first drilling campaign is coming to an end and test work on bulk samples is in progress to design comminution and metallurgical flow sheets for use in preliminary economic assessments of the projects. 

Details of initial drilling programme

The initial drilling programs are designed to establish the potential for large tonnage near-surface disseminated sulphide nickel mineralisation which, on the basis of any subsequent positive metallurgical testing, should provide enough information to complete a preliminary economicassessment.

The latest diamond drilling results are set out below.

Burgersfort Nickel Project

The Burgersfort nickel project is located close to the town of Burgersfort in the Mpumalanga Province of South Africa where potential nickel mineralization in the extensive Aapiesdoorndraai peridotite sill is being evaluated.  Current drilling is targeting a 2,500m by 1,500m area in the north of the sill where the focus is to delineate a large, near surface disseminated nickel sulphide resource. Eleven boreholes in a programme of 13 vertical widely spaced boreholes have been completed and the last one is in progress.

Assay results have been received from the first five boreholes (see Table 1) which confirm the possible existence of a large, near surface disseminated nickel resource. Assay results of the other boreholes have not been received and will be reported as soon as they are available. Upon receipt of all outstanding results, and satisfactory review of all QAQC and metallurgical results carried out to date, it is anticipated that a JORC/SAMREC compliant resource will be completed.

Table 1- Significant Assay Results of vertical Diamond Drilling at Burgersfort Nickel Project

Borehole ID	From (metres)	To (metres)	Interval (metres)	% total Ni*	Remarks
AP05	38	253.61	215.61	0.24
Including	38	61	23	0.29	Oblique dyke 54.41m to 107.4m
Including	107.4	253	145.6	0.30
AP08	20	229.67	209.67	0.25
Including	38	164	126	0.33
AP09	42.55	169	126.45	0.22
Including	93	155	62	0.27
AP14	81.12	328.8	247.68	0.28
Including	85	265	180	0.29
AP13	33.62	148.7	115.08	0.19
Including	97	127	30	0.24

*Ni grades shown as determined by multi-acid digest with ICP finish

Zebediela Nickel Project

The Zebediela nickel project is located in the Limpopo Province of South Africa close to the platinum mining town of Mokopane. A large peridotite body with known disseminated nickel sulphide mineralisation is being evaluated with the target of proving the existence of a large (in excess of 1 billion tonne) near-surface disseminated nickel sulphide resource.  The diamond drilling program is designed to determine the extent and average grade of the peridotite body.  The next phase will be to define an area within the body containing a large tonnage at higher grade and to complete JORC/SAMREC compliant resource estimates.

The current drilling programme has confirmed that the body is continuous in a north-west, south-east direction for more than 3,000 metres with an average width of more than 1,000 metres. 

Table 2 - Significant Nickel Intercepts of inclined Diamond Drilling at Zebediela

Borehole ID	From (metres)	To (metres)	Interval (metres)	% total Ni*	Remarks
U01 (historical)	101	622	521	0.26	Stopped in NE footwall
Including	536	631	95	0.30
U02 (historical)	60	222	162	0.27	Stopped in NE footwall
Including	116	211	95	0.33
Z01	35	96	61	0.26	Stopped in NE footwall
Including	59.54	96	36.46	0.26
Z02	51.7	238.53	186.83	0.22	Stopped in NE footwall
Including	174	228	54	0.25
Z03	59.34	312.37	253.03	0.23	Stopped in NE footwall
Including	83	178	95	0.28
Z04	47	364	317	0.25	Stopped in mineralized hartzburgite
Including	203	314	111	0.28
Z05	44.82	368	323.18	0.26	Stopped in NE footwall
Including	59	167	108	0.28
Z06	57.65	345.1	287.45	0.24	Stopped in mineralized hartzburgite
Including	93.08	201	107.92	0.27
Z07	51.17	446.25	395.1	0.24	Stopped in NE footwall
Including	76	200	124	0.29
Z08	60.94	381	320.06	0.26	Stopped in NE footwall
Including	230	345	115	0.27
Z09	58	329.35	271.35	0.22	Stopped in NE footwall
	58	158	100	0.26
Z10	50.8	202.80	152.00	0.21	Stopped in NE footwall
Including	71	159	88	0.22
	137	159	22	0.26

*Ni grades shown as determined by multi-acid digest with ICP finish.

Drilling and assay results to date have shown that there appears to be surprisingly little variation in both host rock hartzburgite composition and nickel mineralisation throughout the body.   Significant intercepts of the first ten boreholes from which assay results have been received together with the results of two historical holes are shown in Table 2.

Results of the completed boreholes Z11 to Z16 are still awaited and will be reported when received. 

Upon receipt of all outstanding results, and satisfactory review of all QAQC and metallurgical results carried out to date, it is anticipated that a JORC/SAMREC compliant resource will be completed.

Boreholes Z01, Z03, Z04, Z06, Z12 (assay in progress),Z13 (assay in progress)and Z14 are heel-toe boreholes along the same section drilled to evaluate the full width of the peridotite body with borehole Z01 drilled close to the bottom contact and the other holes drilled to intersect peridotite stratigraphically deeper into the body. Boreholes Z05, Z07 to Z011, Z15 and Z16 are placed to define, together with historical holes U1 and U2, the strike extent of the body.

Metallurgy

Detailed mineralogical test work has been performed on composite lithological samples representative of the Burgersfort and Zebediela nickel mineralisation.  Informed by the mineralogical data, a nickel extraction route inclusive of comminution, froth flotation and magnetic separation has been proposed. 

A proven, yet innovative, comminution circuit that could result in significant power and operating costs reductions is proposed to liberate the nickel containing minerals. Comminution test work has been completed and returned favorable results in support of the proposed flow sheet.

Flotation test work performed on the Zebediela bulk sample has progressed well and demonstrated that a rougher sulphide concentrate can be recovered, while suppressing the overwhelming serpentine matrix. Key parameters that are being optimized include the grind and reagent requirements, while further work is ongoing with regard to production of a saleable concentrate.

Mr. Herculus Jacobs B.Eng (Metallurgy), Pr. Eng (Metallurgy),ECSA, SAIMM, MMMA, NIASA has been appointed to coordinate the research at SGS Laboratories, Maelgwyn Mineral Services and other institutions with the view to designing initial metallurgical flow sheets for use in the preliminary economic assessment.

For further information:

URU Metals Limited

Anton Esterhuizen

Tel: [phone]

Beaumont Cornish Limited (Nominated Adviser)

Michael Cornish

Tel: [phone]

Brand: Mining IR

Andre Morral / Dr Iestyn Adams

Tel: [phone]

Daniel Stewart & Company (Broker)

Sean Lunn

Tel: [phone]

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.

These forward-looking statements speak only as of the date they are made.

Mike Venter Pr.Sci.Nat., Principal Consultant at The MSA Group is the qualified person responsible for URU Metals who verified the data reported above. Mike Venter is a consultant to URU Metals with no interest in the company and has consented to the inclusion in this announcement of its name in the form and context in which it appears. Exploration data is acquired by URU Metals using best practice quality assurance and quality control protocols.

GLOSSARY

Hartzburgite

A rock of the peridotite group consisting essentially of olivine and orthopyroxene

Nickel or Ni

Nickel belongs to the transition group of metals, is hard and ductile and a silvery-white metal with a slight golden tinge that takes a high polish.

Peridotite

A peridotite is a dense, coarse-grained igneous rock, consisting mostly of the minerals olivine and pyroxene. Peridotite is ultramafic, as the rock contains less than 45% silica. 

Pyrrhotite

Pyrrhotite is an unusual iron sulfide mineral with variable iron content. Pyrrhotite is a rather common trace constituent of igneous rocks all over the world. It occurs as segregation deposits from mafic igneous rocks associated with pentlandite and other sulfides. Pyrrhotite does not have specific applications. It is mined primarily because it is associated with pentlandite, sulfide mineral that can contain significant amounts of nickel and cobalt

Pentlandite

Pentlandite is an iron-nickel sulfide. Pentlandite is found within the lower margins of mineralised layered intrusions, the prime example being the Bushveld igneous complex, South Africa, the Voiseys Baytroctolite intrusive complex in Canada, the Duluth gabbro, in North America, and various other localities throughout the world. In these locations it forms an important nickel ore.

Preliminary Economic Assessment

A comprehensive study of a deposit in which all geological, engineering, operating, economic and other relevant factors are considered in sufficient detail for it to reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.

Ultramafic rocks

Ultramafic rocks are igneous and meta-igneous rocks with very low silica content and are composed of usually greater than 90% mafic minerals (dark colored, high magnesium and iron content). The earth's mantle is composed of ultramafic rocks.

ENDS

 

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