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UraMin Inc (UMN)

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Monday 19 February, 2007

UraMin Inc

Interim Feasibility Study

UraMin Inc
19 February 2007


19 February 2007


                                  UraMin Inc.
                          ('UraMin' or the 'Company')

            SRK's Interim Report on the Trekkopje Feasibility Study


UraMin is pleased to announce the results of SRK's Interim Progress Update
Report on the feasibility study for the Trekkopje Uranium Project in Namibia:


•  Proposed production profile rising to over 8 million lbs per annum
   U308 using heap leach technology

•  Estimated operating costs are US$18.07 per lb U308 after V205 credit
   (US$20.08 per lb without V205 credit) and estimated capital expenditure of
   US$461 million

•  Estimated pre-tax Internal Rate of Return of 67 per cent and a Net
   Asset Value of US$1.2 billion (using an 8 per cent discount rate)

•  Resources in the Measured and Indicated category increase over 200 per
   cent to 46.5 million lbs at an average grade of 146ppm U308 (using a cut-off 
   of 100ppm)


Ian Stalker, Chief Executive, said: 'SRK's project scope contemplates an open
pit mine utilising a sodium carbonate/bicarbonate heap leach process at a large
scale mining rate of 100,000 tpd.  As a result production would rise to more
than 8 million lbs per annum of U308, much higher than previously envisaged, and
Trekkopje would become one of the largest uranium producing mines in the world.
SRK's interim results have exceeded expectations and we look forward to
completing the Feasibility Study and beginning the development stage later this
year.'


Heap leach is the preferred processing technology following successful column
leach test work indicating recoveries of approximately 75 per cent and as a
result SRK has evaluated a production profile for Trekkopje rising to 8 million
lbs U308 per annum.  This compares favourably with the 3.3 million lbs U308 per
annum of production previously considered using tank leach processing.  Most
importantly water consumption using heap leaching is substantially lower than
would be the case with tank leaching.


SRK's model envisages a 2 year pre-production period, followed by a production
period of 8 years producing 61 million lbs U308 and 20 million lbs V205. A trial
mine is planned for the fourth quarter of 2007 and Trekkopje should commence
commercial production in the fourth quarter of 2008 at initial production rates
of 4 million lbs per annum scaling up to in excess of 8 million lbs within 2
years thereafter.  Potential exists to achieve incremental production for the
project from the following areas:


•   An additional 75 million tonnes of sulphate rich ore grading approximately 
    148 ppm is excluded from the proposed mine plan but is the subject of 
    further testing and could be amenable to acid leaching.

•   Test work is being undertaken to determine whether lower grade material 
    using a cut off grade of 60 ppm could be treated on a 'dump leach' basis.

•   Excellent exploration potential exists on the additional exploration license 
    area granted to UraMin in November 2006.  Significant radiometric
    anomalies on the property are interpreted to delineate extensive sedimentary
    channels, similar to those already drilled on the Trekkopje project.

This potential upside could extend the life of mine and sustainability of
production rates of 8 million lbs per annum of U308 beyond the initial mine plan
of 8 years with resultant enhanced project economics.


The selection of a carbonate/bi-carbonate heap leach and ion exchange at a mine
production rate of 100,000 tpd would require a water supply from a desalination
plant of 12 million m3 per year. It is anticipated that the cost of construction
of a desalination plant may be partially offset by contributions from other
parties reducing the estimated capital expenditure on the basis of a shared
plant.


Updated Resource Statement


UraMin is also pleased to announce SRK's NI 43-101 compliant updated interim
resource statement on the Trekkopje Uranium Project in Namibia where both
deposits have seen a substantial conversion of Inferred to Indicated Resources.
Current in-fill drilling is expected to convert most of the total remaining
Inferred resource to Measured and Indicated.



•  Project Measured and Indicated resources are estimated at 144.6
   million tonnes grading 146 ppm eU3O8 (at a 100 ppm cut off grade), containing 
   an estimated 46.5 million pounds of U3O8.


•  Project Inferred resources are estimated at 195.3 million tonnes grading 138 
   ppm eU3O8, containing an estimated 59.3 million pounds U3O8.


•  The Measured and Indicated resource increased 236% from the September 2006 
   initial resource estimate, as a result of the conversion of Inferred 
   resources, due to increased drill density.


•  A program of in-fill drilling central to the 200 by 200m grid (5-spot 
   drilling) is being completed and is expected to convert much of the existing
   Inferred resource to Measured and/or Indicated resource.  An updated resource
   estimate is due in April 2007.



Trekkopje Project Combined Resources at 100 ppm U3O8 Cut-off grade

Resource Classification                   Resource             Grade          Contained          Contained
                                          (tonnes)       eU3O8 (ppm)       Tonnes eU3O8       Pounds eU3O8
Measured:

Klein Trekkopje                          7,096,000               156              1,105          2,435,000
Trekkopje                                        0                 0                  0                  0

                                             _____             _____              _____              _____
Sub-Total Measured                       7,096,000               156              1,105          2,435,000
                                             _____             _____              _____              _____
Indicated:

Klein Trekkopje                        109,631,000               149             16,320         35,978,000
Trekkopje                               27,835,000               131              3,659          8,067,000
                                             _____             _____              _____              _____
Sub-Total Indicated                    137,466,000               145             19,979         44,045,000
                                             _____             _____              _____              _____
Measured & Indicated:

Klein Trekkopje                        116,727,000               149             17,424         38,413,000
Trekkopje                               27,835,000               131              3,659          8,067,000
                                             _____             _____              _____              _____
Total M&I                              144,562,000               146             21,084         46,480,000
                                             _____             _____              _____              _____
Inferred:

Klein Trekkopje                        177,090,000               139             24,610         54,255,000
Trekkopje                               18,216,000               125              2,284          5,035,000
                                             _____             _____              _____              _____
Sub-Total Inferred                     195,306,000               138             26,894         59,290,000
                                             _____             _____              _____              _____



Klein Trekkopje Deposit Resources at 100 ppm U3O8 Cut-off grade


Resource Classification - 100 ppm cutoff  Resource             Grade          Contained          Contained
                                          (tonnes)       eU3O8 (ppm)       Tonnes eU3O8       Pounds eU3O8
                                          
Measured:

Conglomerate                             2,835,000               143                404            891,000
SO4 Rock*                                4,261,000               164                700          1,544,000
Bedrock                                          0                 0                  0                  0
                                             _____             _____              _____              _____
Sub-Total Measured                       7,096,000               156              1,105          2,435,000
                                             _____             _____              _____              _____
Indicated:

Conglomerate                            88,430,000               144             12,744         28,095,000
SO4 Rock*                               21,076,000               169              3,561          7,851,000
Bedrock                                    125,000               115                 14             32,000
                                             _____             _____              _____              _____
Sub-Total Indicated                    109,631,000               149             16,320         35,978,000
                                             _____             _____              _____              _____
Measured & Indicated:

Conglomerate                            91,265,000               144             13,148         28,986,000
SO4 Rock*                               25,337,000               168              4,262          9,395,000
Bedrock                                    125,000               115                 14             32,000
                                             _____             _____              _____              _____
Total M&I                              116,727,000               149             17,424         38,413,000
                                             _____             _____              _____              _____
Inferred:

Conglomerate                           119,579,000               136             16,288         35,909,000
SO4 Rock*                               57,381,000               145              8,307         18,313,000
Bedrock                                    130,000               116                 15             33,000
                                             _____             _____              _____              _____
Sub-Total Inferred                     177,090,000               139             24,610         54,255,000
                                             _____             _____              _____              _____

* SO4 Rock is material for which sulfate (gypsum) is present above a
process-determined cut-off grade of 0.30% SO4. The average SO4 grade of sulfate
rich ore is not yet determined, as too few assays are present to allow grade
estimation. SO4 material may or may not need special attention in processing.
In-fill RC drilling in progress will establish SO4 grade distribution.


Trekkopje Deposit Resources at 100 ppm U3O8 Cut-off grade


Resource Classification - 100 ppm cutoff  Resource              Grade          Contained          Contained
                                          (tonnes)        eU3O8 (ppm)       Tonnes eU3O8       Pounds eU3O8
                                          
Measured                                         0                  0                  0                  0
Indicated:

Conglomerate                            20,063,000                133              2,659          5,862,000
SO4 Rock*                                7,772,000                129              1,000          2,205,000
Bedrock                                          0                  0
                                             _____              _____              _____              _____
Total M&I                               27,835,000                131              3,659          8,067,000
                                             _____              _____              _____              _____
Inferred:

Conglomerate                            11,395,000                127              1,445          3,186,000
SO4 Rock*                                6,821,000                123                839          1,849,000
Bedrock                                          0                  0
                                             _____              _____              _____              _____
Sub-Total Inferred                      18,216,000                125              2,284          5,035,000
                                             _____              _____              _____              _____


* SO4 Rock is material for which sulfate (gypsum) is present above a
process-determined cut-off grade of 0.30% SO4. The average SO4 grade of sulfate
rock is not yet determined, as too few assays are present to allow grade
estimation. SO4 material may or may not need special attention in processing.
In-fill RC drilling in progress will establish SO4 grade distribution.


Resources for both Trekkopje and Klein Trekkopje have been updated from
September 2006 by the following:


• Completion of 200 by 200m spaced drilling at Klein Trekkopje and the
  drilling of a 400 by 400 m area on 50 by 50m spacing to examine grade
  variability:

• An 18ppm 'background' radiometric eU3O8 base above which 
  mineralization exists was confirmed by chemical analyses.  This was removed 
  from the down-hole eU3O8 data for all drill holes at both Trekkopje and Klein
  Trekkopje.

• Statistical data defined a 35ppm break to corrected eU3O8 data, as the basis 
  for establishing grade shells at both deposits;

• Data was composited to 2.5m down-hole intervals to allow for the likelihood of 
  bulk tonnage mining methods, while permitting vertical discrimination of the 
  deposit at the top and bottom of mineralization.

• Increased density of drilling allowed for 100m x 100m x 2.5m blocks; grade 
  interpolation was by ordinary kriging internal to the grade shells, using
  acceptable variography parameters that mimic geology.

• Resources were classified based on a proportion of the range, number of 
  composites, and a minimum number of drill holes; standard protocols for CIM
  classifications of Measured, Indicated and Inferred resources.

• SO4 material was defined by a 0.3% SO4 cutoff, defining a surface
  sub-parallel to the topography surface to define tonnes of SO4 material.

• SO4 grades are not reported as they are based on very limited RC assay data, 
  are not currently sufficient, and will be augmented with additional
  information from the current 5-spot drilling in progress.

• For the purpose of a Preliminary Assessment, there are a total of 33.1
  million tonnes of Measured and Indicated resource, and 64.2 million tonnes
  of Inferred resource for which sufficient SO4 is present to be listed
  separately.  Approximately 22 million tonnes are currently in the plan as
  normally processable material, pending further testing and drill assay
  results. The remaining SO4 bearing resource is being investigated for
  possible alternative processing options.


Resources will be updated in April 2007 after inclusion of 5-spot infill RC
drilling. The intent of the 5-spot drilling program is to convert Inferred
resources to Indicated resources and provide additional analytical data to
establish SO4 grades.


Feasibility    a comprehensive study of a deposit in which all geological, engineering, operating, economic and other
study          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

U308 ppm       Triuranium octaoxide grades in parts per million generated as a result of the conversion of down hole
               total gamma radiometric probe data to equivalent uranium oxide  using probe calibration on known uranium
               sources and QA/QC procedures. 'Industry Standard Procedure'

Sodium         Chemical formula - Na2CO3, is a sodium salt of carbonic acid
carbonate

V205           Vanadium pentoxide

SO4            Sulphate

Sedimentary    Fluvial channel containing debris including clasts and sediment derived from a source upstream
channels

Conglomerate   Rock consisting of rounded clasts of gravel surrounded by sand.

NI 43-101      National Instrument 43-101 - Standards of Disclosure for Mineral Projects, Form 43-101F1 and Companion
               Policy 43-101CP


Measured       A 'Measured Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality,
Resource       densities, shape, and physical characteristics are so well established that they can be estimated with
               confidence sufficient to allow the appropriate application of technical and economic parameters, to
               support production planning and evaluation of the economic viability of the deposit. The estimate is     
               based on detailed and reliable exploration, sampling and testing information gathered through            
               appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that    
               are spaced closely enough to confirm both geological and grade continuity.

Indicated      An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality,
Resource       densities, shape and physical characteristics can be estimated with a level of confidence sufficient to
               allow the appropriate application of technical and economic parameters, to support mine planning and
               evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable
               exploration and testing information gathered through appropriate techniques from locations such as
               outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and     
               grade continuity to be reasonably assumed.


Inferred       An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality
Resource       can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not
               verified, geological and grade continuity. The estimate is based on limited information and sampling
               gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and
               drill holes.

5 spot infill  Drill pattern that includes 4 drill holes on a square pattern with an additional 5th hole drilled at the
drilling       centre of the square


eU3O8 (ppm)    Triuranium octaoxide grades in parts per million generated as a result of the conversion of down hole
               total gamma radiometric probe data to equivalent uranium oxide using probe calibration on known uranium
               sources and QA/QC procedures. 'Industry Standard Procedure'.

Lb             Pound

Uranium        heavy silvery-white metallic element found in several minerals, notably uraninite and carnotite

SRK            SRK Consulting (US) Incorporated, managing engineers for the feasibility study of the Trekkopje Uranium
               Project

Tpd            Tonnes per day


The resource information contained in this announcement has been reviewed by
Allan Moran, Principal Geologist with SRK. He is the Qualified Person overseeing
the Trekkopje Project drilling and resource estimation activities for the
purposes of NI 43-101 compliance. Mr. Moran has sufficient experience relevant
to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking, to qualify as a Qualified Person for the
purposes of this announcement.


Resource estimation by SRK, follows CIM (Canadian Institute of Mining and
Metallurgy) resource classification categories, and resources were determined
using background-corrected eU3O8 radiometric probe data, ordinary kriging for
grade estimation and industry standard block modeling techniques. Industry
accepted 'Best Practices Guidelines' were followed in data collection,
documentation, analyses, and reporting. UraMin has a QA/QC program in place for
sample analytical data and down-hole radiometric probe data. The stated
Trekkopje Project resource estimates are based on entirely new drilling data
collected in 2006 by UraMin, and does not include any historical drill hole
data.


The Interim Progress Update Report represents the latest view of project
concepts, designs and likely projected outcomes based on the work conducted to
date, industry accepted practice and certain project specific assumptions.
Readers are cautioned that the results reported are not definitive and maybe
subject to change as further work is undertaken.  Project outcomes may
ultimately be materially different from those projected in this report.


For further information:

Stephen R. Dattels

Executive Deputy Chairman

Tel: +44 7917 739249


Ian Stalker Chief Executive Officer

Neil Herbert, Finance Director

Tel: +27 11 783 5056


London

Canaccord Adams Limited

Robin Birchall/Tyler Broda

Tel: +44 20 7050 6741


UK Media Enquiries

Financial Dynamics

Ben Brewerton / Edward Westropp

Tel: +44 20 7831 3113


Toronto

Steve Vaughan

+1 416 643 6924



Background Information:


UraMin (www.uramin.com) was founded in February 2005 and its shares are traded
on the AIM market of the London Stock Exchange and the Toronto Stock Exchange
under the symbol 'UMN'. The Company was established to acquire and develop
mineral properties, predominantly uranium.  The Company currently has working
capital of approximately US$95 million and a market capitalization of
approximately US$1 billion on an undiluted basis.


UraMin is currently focusing on the development of its advanced exploration
projects at Trekkopje in Namibia, Bakouma in the Central African Republic and
Ryst Kuil in South Africa. Through the South African joint venture, UraMin also
enjoys additional prospecting license applications for important uranium
deposits in the Karoo, South Africa. No assurance can be given that remaining
applications for the prospecting rights in the Ryst Kuil Channel or elsewhere in
South Africa will be successful.



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.


Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.


                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                                                                                   

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