SAN Nickell Joint Ventue Update

RNS Number : 3314J

URU Metals Limited

29 June 2011

 



For immediate release                                                                                                              29 June 2011

URU METALS LIMITED

("URU Metals" or "URU" or "the Company")

SAN Nickel Joint Venture Update

 Initial Drilling Results for Zebediela and Burgersfort Nickel Projects, South Africa

Highlights

·    Initial diamond drilling results confirm the presence of potentially large disseminated nickel resources at Burgersfort and Zebediela Projects.

·    Zebediela and historical results confirm that the body is continuous in a north-west, south east direction for more than 3,000 metres with an average width of more than 1,000 metres.  

·    Burgersfort current drilling programme is focused on an area in the north of the project area with best assay results from the first vertical borehole of 0.30% Ni from surface to 253 metres.

·    Assay results of five other boreholes at Zebediela and Burgersfort completed to date have not been received and these will be announced as soon as they become available. 

·    The initial results of the drilling programme on the projects indicate that both the Zebediela and Burgersfort targets have the potential to host large near-surface disseminated sulphide nickel deposits. These are similar to deposits currently being investigated elsewhere, including the Dumont Ni Project of Royal Nickel Corporation (RNX- TSX) in Quebec, Canada.

Commenting on the initial drilling results from the Zebediela and Burgersfort targets for the Nickel Joint Venture, Paul Loudon, Non-Executive Chairman of URU Metals, said:

"The results of the first phase of drilling at our two Nickel Joint Venture targets are extremely pleasing. The drill programme will continue to evaluate the targeted ultramafic bodies to prove the potential of world class-size sulphide nickel deposits."

Background

URU Metals, the exploration and development company with uranium interests in Niger and South America, and nickel interests in Southern Africa, announces the first diamond drilling results on two of its nickel targets which confirm the presence of potentially large disseminated nickel resources.  The drilling campaign is still in progress.

As previously announced, URU established a joint venture with Southern African Nickel ("SAN"), which is developing a portfolio of large scale nickel projects in Southern Africa.  URU agreed to provide funding up to US$3.6 million to facilitate project development activities to earn an initial effective interest of 50 per cent. in the Joint Venture. Exploration has been mainly focused on the Zebediela and Burgersfort nickel projects in South Africa. The first diamond drilling results are set out below.

Details of drilling programme

The initial drilling programmes are designed to establish the potential for large tonnage near-surface disseminated nickel mineralisation which, on the basis of any subsequent positive metallurgical testing, should provide enough information to complete a scoping study.

Zebediela Nickel Project

The Zebediela Nickel Project is located in the Northern Province of South Africa close to the platinum mining town of Mokopane. A large peridotite body with known disseminated nickel sulphide mineralisation is being evaluated with the target of proving the existence of a large (in excess of 1 billion tonne) near-surface ore body containing economically recoverable nickel sulphide mineralisation. The drilling programme is designed to determine the depth, surface extent and average grade of the peridotite body and to define an area within the body to delineate a high tonnage near surface resource as the next phase.

The current drilling programme has confirmed that the body is continuous in a north-west, south-east direction for more than 3,000 metres with an average width of more than 1,000 metres on the property.  

Table 1 – Diamond Drilling at Zebediela Nickel Project

	Borehole ID	Latitude	Longitude	Elevation	Azimuth	Inclination	Depth
							(Metres)
	U01 (Historical)	-24.13223	29.02236	1172	52	-50	662.03
	U02 (Historical)	-24.11655	29.01468	1160	52	-50	461.63
	Z01	-24.12000	29.02000	1161.5	52	-50	168.05
	Z02	-24.12507	29.02241	1173	52	-50	255.40
	Z03	-24.12088	29.01879	1167	52	-50	336.00
	Z04	-24.12170	29.01763	1160	52	-50	364.11
	Z05	-24.12616	29.02141	1175	52	-50	396.05
	Z06	-24.12300	29.01600	1167	52	-50	Drilling
	Z07	-24.13084	29.02428	1167	52	-50	Drilling

Table 2 - Significant Assay Results of Diamond Drilling at Zebediela

Borehole ID	From	To	Unit	Interval	Ni
	(Metres)	(Metres)		(Metres)	(%)
U01	5.58	53	Weathered	447.4	0.18
U01	53	67	3	14.	0.01
U01	67	387	2	320	0.23
U01	387	622	1	235	0.27
U02	0	45	Weathered	45	0.21
U02	45	109	2	64	0.20
U02	109	216	1	107	0.31
U02	216	460	Footwall	244
Z01	0	37	Weathered	37	0.14
Z01	37	105	1	68	0.24
Z01	105	168.05	Footwall	63.05
Z02	0	51.7	Weathered	51.7	0.21
Z02	51.7	138.00	2	86.05	0.22
Z02	138.00	238.53	1	100.53	0.22
Z02	238.53	255.4	Footwall
Z03	0	59.34	Weathered	59.34	0.17
Z03	59.34	81.00	2	22	0.25
Z03	81.00	312.37	1	231.37	0.23
Z03	312.37	336	Footwall	23.63

A 12 diamond drill hole programme has been planned with five holes completed and two currently in progress (see Table 1 above). This drill programme complements the two historical boreholes previously drilled into the north-eastern contact of the peridotite body, these being boreholes U01 and U02 which had intersections of 552 metres at 0.25% Ni and 220 metres at 0.25% Ni respectively.

The results of the current drilling appear to validate the historical boreholes and indicate that the body is a flattened pipe-like body with the north-eastern contact of the body dipping at 80 degrees to the south-west. Boreholes Z01, Z03, Z04 and Z06 are heel-toe boreholes along the same section to evaluate the full width of the peridotite body with borehole Z01 drilled close to the bottom contact and the other holes drilled to intersect peridotite stratigraphically deeper into the body.

Significant assay results from the first three boreholes drilled during this investigation (Z01, Z02 and Z03) are shown in Table 2 above together with results of the two historical boreholes (U01 and U02).  The results show that units 1 and 2 of the peridotite generally have average grades of between 0.2% and 0.3% total Ni.

A bulk sample of material composited from drill core has been submitted to SGS laboratories for metallurgical test work to confirm previous findings that the nickel is mainly contained in recoverable nickel sulphide minerals and not within Ni bearing silicate minerals.

Results of the other boreholes completed are still awaited and will be reported when received.

Burgersfort Nickel Project

The Burgersfort nickel project is located close to the town of Burgersfort in the Limpopo Province of South Africa.  Previous exploration by Gold Fields and Falconbridge identified several shallow disseminated nickel targets and three deeper massive sulphide nickel targets associated with the Aapiesdoorndraai peridotite sill. The sill outcrops at places within an area of 20km by 4km within which exploration activities are being currently being focused. 

The drilling programme is focused on locating an economically viable disseminated nickel sulphide mineralisation within the Prospecting Right.

In the 1980s disseminated nickel sulphide mineralisation was reported in boreholes intersecting the Aapiesdoorndraai peridotite sill.  Some holes intersected more than 0.3% Ni from surface to a depth of more than 300 metres but the area in which these holes were drilled is now part of a housing development.

The current drilling programme is targeting an area in the north of the project area where the focus is to delineate a large, low grade near surface disseminated nickel sulphide resource. Four boreholes in a programme of 12 vertical widely spaced boreholes have been completed (Table 3) and two are in progress.

Assay results have been received from the first borehole AP-05 (see Table 4) with best intersection of 0.30% Ni from surface to 253 metres, excluding a 45 metre oblique dyke intersection, which confirmed the possible existence of a near surface large tonnage disseminated nickel resource.

Assay results of the other boreholes have not been received and will be reported as soon as they are available.   

A  bulk sample which is a composite of borehole AP-05 has been submitted to SGS Laboratories for metallurgical work to confirm previous results that most of the nickel mineralisation is in the form of recoverable sulphide minerals.

Table 3 - Diamond Drilling at Burgersfort Nickel Project

Borehole ID	Latitude	Longitude	Azimuth	Inc	Depth	Peridotite Base
					(Metres)
AP-05	-24.655655	30.352626	0	-90	253.61	Stopped in peridotite
AP-08	-24.651625	30.341111	0	-90	262.07	229.63m
AP-09	-24.64901	30.354546	0	-90	204.72	171.24
AP-10	-24.64402	30.355121	0	-90	151.18	117.84

Table 4 - Significant Assay Results of Diamond Drilling at Burgersfort Nickel Project

Borehole ID	From	To	Unit	Interval	Ni
	(Metres)	(Metres)		(Metres)	(%)
AP-05	0	62.41	Above Dyke	62.41	0.29
AP-05	62.41	107.4	Dolerite Dyke	44.99	0.02
AP-05	107.4	253.61	Below Dyke	146.21	0.30

A second area on the property, located 16 km to the south, will become the focus of exploration efforts in the latter half of 2011.

For further information:

URU Metals

Gordon Cassidy, Finance Director

Tel: [phone]

Beaumont Cornish Limited (Nominated Adviser)

Michael Cornish

Tel: [phone]

Brand: Mining IR

Andre Morral / Dr Iestyn Adams

Tel: [phone]

Daniel Stewart & Company (Broker)

Sean Lunn

Tel: [phone]

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.

Mike Venter Pr.Sci.Nat., Principal Consultant at The MSA Group is the qualified person responsible for URU Metals who verified the data reported above. Mike Venter is a consultant to URU Metals with no interest in the company and has consented to the inclusion in this announcement of its name in the form and context in which it appears. Exploration data is acquired by URU Metals using best practice quality assurance and quality control protocols.

GLOSSARY

Nickel or Ni

Nickel belongs to the transition group of metals, is hard and ductile and a silvery-white metal with a slight golden tinge that takes a high polish.

Peridotite

A peridotite is a dense, coarse-grained igneous rock, consisting mostly of the minerals olivine and pyroxene. Peridotite is ultramafic, as the rock contains less than 45% silica. 

Pyrrhotite

Pyrrhotite is an unusual iron sulfide mineral with variable iron content. Pyrrhotite is a rather common trace constituent of igneous rocks all over the world. It occurs as segregation deposits from mafic igneous rocks associated with pentlandite and other sulfides. Pyrrhotite does not have specific applications. It is mined primarily because it is associated with pentlandite, sulfide mineral that can contain significant amounts of nickel and cobalt

Pentlandite

Pentlandite is an iron-nickel sulfide. Pentlandite is found within the lower margins of mineralised layered intrusions, the prime example being the Bushveld igneous complex, South Africa, the Voiseys Baytroctolite intrusive complex in Canada, the Duluth gabbro, in North America, and various other localities throughout the world. In these locations it forms an important nickel ore.

Sepentinite

Serpentinite is a rock composed of one or more serpentinite group minerals. Minerals in this group are formed by serpentinization, a hydration and metamorphic transformation of ultramafic rock from the earth's mantle. 

Serpentinization

Serpentinization is a geological low-temperature metamorphic process involving heat and water in which low-silica-mafic and ultramafic rocks are oxidised and hydrolyzed with water into serpentinite. Peridotite, including dunite at and near the seafloor and in mountain belts is converted to serpentine, brucite, magnetite, and other minerals

Scoping Study

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

Ultramafic rocks

Ultramafic rocks are igneous and meta-igneous rocks with very low silica content and are composed of usually greater than 90% mafic minerals (dark colored, high magnesium and iron content). The earth's mantle is composed of ultramafic rocks.

ENDS

 

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