Re Joint Venture

RNS Number : 5220M

GCM Resources PLC

30 January 2009

 



GCM Resources plc 

GCM RESOURCES PLC - AURA ENERGY LIMITED JOINT VENTURE DEFINES WIDESPREAD STRONG URANIUM MINERALISATION IN NORTHERN MAURITANIA

Aura Energy Limited (ASX:AEE), with which GCM Resources plc (GCM) has a joint venture, made the following announcement today covering the joint venture exploration activities in Mauritania.  In addition to its joint venture, GCM has an 18.5% interest in the ordinary shares of Aura Energy Limited.

• The second phase of sampling in the Oued Foule Est permit confirms the presence of widespread, significant uranium grades at surface

• Uranium mineralisation, ranging up to 2217 ppm U3O8, was located in shallow sampling pits, 

• The uranium mineralisation is located within zones of strong radiometric response defined by ground geophysical surveying.

• Within one 3.0 km long radiometric zone in Survey Area A, 10 out of 15 sample pits contained significant uranium mineralisation averaging 810 ppm U3O8. 

• Mineralisation appears to be as strong at the base of the pits as at surface

• The mineralisation lies within a 1400 km2 exploration permit held under Aura / GCM joint venture.

Aura Energy Limited, in joint venture with GCM Resources plc (GCM), carried out a field programme in December 2008 on its Oued el Foule Est exploration permit in Northern Mauritania. The objective of the programme was to test the extent of uranium mineralisation, high grade in places, encountered during previous reconnaissance surveying by Aura.  

The Joint Venture carried out a programme of detailed ground-based geophysics (radiometrics) over 8 target areas. Additionally a programme of pitting and sampling was conducted. In total 85 shallow pits were excavated to an average depth of approximately 0.7m. Samples were taken for analysis from pit walls and bottoms.  

Regional sampling pits were dug generally on a 500m x 500m grid to determine the extent of mineralisation. In addition, in one area, 12 sampling pits were dug on an approximate 50m grid to determine short range variability. 

In total, 19 of the pits contained elevated U values ranging from 119 ppm U3O8 to 2217 ppm U3O8 , with wall samples of these pits averaging 535 ppm U3O8.

Key results emerging from the field programme were:

• Ground radiometric surveying defined multiple zones of high radiometric response.

• Within Area A, where most of the sampling was completed, one strong radiometric zone approx 3.0 km in length with width varying between 100 to 500m, returned evidence of uranium mineralisation in 10 of 15 pits. These 10 pits averaged 810 ppm U3O8 in pit walls and 780 ppm U3O8 from pit floor samples.  

• Peak wall sample was 1700 ppm U3O8 and peak floor sample was 2217 ppm U3O8.

• The uranium mineralisation occurs within weathered lower Proterozoic granites and is commonly associated with calcrete.  

• Uranium occurs as yellow uranium vanadate (tyuyamunite and/or carnotite).

• The depth extent of the uranium mineralisation below the base of the sampling pits remains unknown.

• As far as Aura is aware the area has had no previous systematic exploration for uranium.

Aura and GCM jointly hold 2 other granted permits in northern Mauritania, and on both located similar strong uranium mineralisation during reconnaissance in 2008. Follow-up sampling to test the extent of the mineralisation on the other 2 licences remains to be carried out.

Aura's Managing Director, Dr Bob Beeson, said 'We are pleased with the very positive outcome of this programme. This has supported the results of the original fieldwork which indicated that we have identified a new, at surface, uranium field, containing good grades for shallow mineralisation'.

'Not only has the mineralisation been demonstrated to extend over substantial areas, but the mineralisation also appears to extend below the floors of the sample pits.'

Mauritania has a developed mining industry, a government keen to attract foreign investment, and extensive geological, geophysical and geochemical databases.

Background

On behalf of its Uranium Alliance with GCM, Aura has been actively developing high quality uranium exploration targets in West Africa since April 2007. The Alliance brings together the technical uranium experience, targeting and exploration skills of Aura with the project development and mining experience of GCM.  The Alliance is managed and exploration conducted by Aura with funding provided jointly by Aura and GCM in cash and in kind.  Projects generated by the Alliance are initially solely funded by GCM, with Aura retaining the right to participate in any Joint Venture with 30% (or, at Aura's election, lower) interest.    

GCM Resources plc Stephen Bywater Chief Executive [phone] Graham Taggart Finance Director [phone]	Pelham PR Charles Vivian [phone]  Klara Kaczmarek [phone]
JPMorgan Cazenove Nominated Adviser Michael Wentworth-Stanley Mark Hankinson [phone]
GCM Resources plc
Tel: [phone], Fax: [phone]
[e-mail]; www.gcmplc.com

 

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