Last checked at 15 Oct 2010 10:58
For immediate release
15 October 2010
Niger Uranium Limited
("Niger Uranium", "NUL" or the "Company")
2010 Exploration Drilling Campaign commences on Niger Licenses
Niger Uranium Limited (AIM: URU), the metals exploration and development company with uranium interests in Niger, Namibia and South America, and nickel interests in Southern Africa, announces the commencement of its 2010 exploration drilling campaign on the Company's wholly-owned In Gall and Irhazer uranium licenses in Niger.
Highlights
·; An exploration programme to evaluate three previously identified uranium targets (at an estimated cost of US$650,000) commences on 15 October 2010
·; A combination of tricone and diamond drilling will initially focus on the Aboye target, located in the north-eastern portion of the In Gall license area. Five tricone boreholes are to be drilled, totalling approximately 1,250 linear metres. Drilling is to commence on 15 October 2010
·; Objectives at Aboye are to delineate a 3km2 zone that could contain a uranium mineralisation trap and to examine the intersection (6m@127ppm U3O8) of the borehole AB003 drilled in 2007
·; The second drill target is at Akenzigui in the south-eastern portion of the Irhazer license. The drilling of more than 2,000 metres is expected to commence on 15 November 2010
·; Geological faulting and doming at the Akenzigui target resembles that of the Azelik Mine, situated 40 km north, where an international consortium led by China Nuclear International Uranium Corporation and the Niger Government is developing a deposit of approximately 15,000 tonnes U3O8
·; The third exploration target will, at this stage only, be the mapping of certain areas in the north of the Irhazer permit, where radon anomalies were identified by the company in the past.
·; The prolongation, by the Niger Government, of the Company's In Gall and Irhazer permits by 20 months with effect from 18 August 2010
·; Work on the In Gall and Irhazer license areas is unaffected by the security problems experienced further north in Niger. Both In Gall and Irhazer licences are located close to the military base at Agadez
Paul Loudon, Non-Executive Chairman of Niger Uranium, said:
"We are delighted to announce the restart of our exploration activities in the highly prospective In Gall and Irhazer license areas. Our objective is the identification of an economically viable uranium resource in Niger and we look forward to informing shareholders as soon as results are made available. The Niger and French Governments have recently strengthened security within Niger and our assessment is that the security risk at In Gall and Irhazer is low."
Details of drilling programme
The objective of the programme is to further evaluate prospective drill and other targets previously identified by the company during 2007 and 2008. The field camp has been re-established and staff commenced work during the first week of October 2010 with the objective of completing the following programme:
Aboye Target: The drilling of five boreholes (totalling approximately 1,250 linear metres) is scheduled to commence on 15 October 2010. The holes are to be drilled by using a combination of tricone drilling followed by diamond drilling over mineralised sections. Down hole geophysical logging will be completed for each hole. We expect that work at this site will conclude during the first week of November. The choice of drill locations is based on previous results obtained, namely:
If significant uranium mineralisation is intersected during the current drilling campaign, Niger Uranium intends to commence a scoping study in 2011 to determine whether a second phase of drilling is justified. Results from the second phase of drilling, together with previous results, could subsequently form the basis for a pre-feasibility study, which could commence towards the end of 2011.
Political and security situation
Niger Uranium believes that the security risk at In Gall and Irhazer is low. The permit area is located far to the south of residual activity by opponents to the current Niger government. In Niger, an inter-ministerial committee has been set up to deal with the issue within national borders and to establish a strategy to protect mining and other commercial activities. France has deployed a military force in the Arlit region to provide additional security. Large military camps are situated close to the Niger Uranium exploration permits and the Company primarily employs local staff. Local authorities have installed a radio transmitter-receiver at In Gall. All cars and foot teams are equipped with radios, which remain in permanent contact with the National Guard base at In Gall.
The Board is therefore confident that the current exploration programme (and subsequent activities) at the In Gall and Irhazer license areas can proceed unaffected by the security problems that have been experienced in the northern regions of Niger.
Licenses
Whilst the licenses that cover the In Gall and Irhazer properties were issued to Niger Uranium in 2007 for an initial period of three years each, the security situation prevailing in Niger during the interim period has prevented most companies from carrying out their exploration activities effectively. This was particularly the case in the northern areas of the country. As a result, the Niger Government recently announced that it was reviewing the activities of all mining and exploration companies in the country and would consider the possible prolongation of the lifespan of existing mining permits. The Board is pleased to confirm that its In Gall and Irhazer permits have now been prolonged for a further 20 months, at no extra cost, with effect from 18 August 2010.
For further information:
Niger Uranium
Gordon Cassidy, Finance Director
Tel: +27 (0)11 269 4900
Beaumont Cornish Limited (Nominated Adviser)
Michael Cornish
Tel: +44 (0)20 7628 3396
Brand: Mining IR
Andre Morrall /Dr Iestyn Adams
Tel: +44 (0)151 531 7908
Competent Person for Niger Uranium
Mr. Richard Wadley (Pr. Sci. Nat), Senior Consultant at MSA Group Geoservices, is the qualified person responsible for Niger and has verified the geological data reported above. Mr Wadley is a consultant to Niger Uranium, with 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. Exploration data is acquired by Niger Uranium using best practice quality assurance and quality control protocols.
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.