AIM-listed exploration company Uranium Resources, which operates in Tanzania, says that continued expansion of uranium with further drilling and a planned development path to prove its economic viability as a uranium project, as well as the future for its Mtonya and other projects, bodes well with its growth plans and desire to deliver significant shareholder value.

The company revealed that development of maiden resource at its flagship Mtonya project is under way and has successfully completed a 26 485 m drilling programme for the delineation of the initial resource at the project.

Further, Uranium Resources said that it continues to establish itself as a uranium-focused exploration company and views Mtonya as a priority project. In addition to Mtonya, the company has to date conducted early-stage exploration work in Tanzania at its other projects which include Ruvumu (Foxy and Gundua), Ruhuhu (Pedro) and Lukimwa.

Meanwhile, the company noted that in light of the recent changes in Tanzanian licensing fees, a critical review of the companys assets has led to a conclusion that its resources are best invested in advancing the Mtonya project and adjacent properties.

As a result, Uranium Resources revealed that it has elected to exit the Kapinga Joint Venture and return all of its non-core tenements to its joint-venture partners. The Kapinga Joint Venture included the Ruvuma projects (Foxy, Gundua). The company pointed out that all other assets in Tanzania are also being reviewed.

The company also advised that an impairment charge of US$87 551 has been recorded in the financial statements in respect of the Kapinga joint venture termination decision.

In conclusion, the company said that the past year has seen Uranium Resources continue its emergence as a leading uranium exploration company in Africa.

It added that Uranium Resources has developed a credible exploration model and has successfully demonstrated the deep mineralisation potential at Mtonya, which is expected to be amenable to in-situ recovery.

By any measure, this is a new and exciting discovery and it signals the immense magnitude of uranium potential in Tanzanian sedimentary basins. Aiming to increase the resource at Mtonya and carry out pump test places the company on a clear development path, said Uranium Resources MD Alex Gostevskikh.

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