Uranium Resources (LON:URA), the AIM listed uranium exploration and development company, has completed the first phase of its drilling programme at the Mtonya prospect in Tanzania and has now begun the second stage of the programme. Shares in the company responded with a rise of 13% to 3.25p. Uranium raised £0.8m in July in a share placing priced at 2p per share to fund the development work at Mtonya. The programme design is based on a comprehensive analysis of regional geophysical and geological data and the results of previous drilling on the property. Mtonya lies in the Selous Basin of Southern Tanzania, a known uraniferous district which has yielded the Nyota Deposit for Mantra Resources Ltd as well as numerous other uranium occurrences.

The initial results of phase 1 drilling have confirmed management's geological interpretation on a district and prospect scale. Of particular significance have been observations of the right prospective lithologies and the intersection of strata, which have been subjected to extensive redox processes. Management believe these have potential to host large-scale uranium mineralisation.

Phase 1 comprised three diamond core drill holes for a total of 1,512m and while the company has yet to receive all assays for the drill holes it is pressing ahead with phase 2, which will comprise a further 2,200m of diamond core drilling. Phase 2 will further define the geology and is expected to generate drill targets for subsequent exploration programmes. The company has engaged an additional rig to undertake the work and strengthened the field team by the addition of two experienced uranium geologists. Uranium said it hoped to have finished the next stage of drilling, subject to weather conditions, by year end.

Alex Gostevskikh, the company’s managing director, said: “We are particularly pleased with the outcome of phase 1 and we are glad to see it generating initial positive results. Observing the predicted lithologies and the scale of ore forming processes is very encouraging. The company has put a lot of effort into designing this drill programme and we are continuing to process the large quantities of data being generated. We are still awaiting the majority of assay results from the programme. However, the processing of this data will advance our understanding of the mineralisation controls and help us generate valid drill targets for future drilling…

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