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Friday 17 October, 2008

Lithic Metals&Energy

Drilling Report

RNS Number : 0865G
Lithic Metals and Energy Limited
17 October 2008
 






Lithic Metals and Energy Ltd


Drilling Encounters Broad Zone of UraniumMvula EastZambia


Lithic Metals and Energy (AIM:LMY) today announces initial results from scout diamond drilling at its Mvula East uranium prospect, Zambia.


Highlights


  • Drill assays to 826ppm U3O8

  • Multiple zones of elevated uranium values

  • Drilling testing central 3km of 6km-long uranium anomaly 

  • Drilling widely spaced


Assays for diamond drill hole MVUDD003 completed at the Mvula East uranium prospect, Zambia have revealed several zones of elevated uranium values up to 826ppm U3O8.


Broader zones encountered included 6.04m @ 142.24ppm U3O8 from 187m (including 42cm @ 826ppm U3O8) and 7m @ 137ppm U3O8 from 206.24m (including 60cm @ 734ppm U3O8).  Uranium mineralisation was generally intersected in metamorphosed dolomite units interfingered with biotite schists.


Mvula East is a 6 kilometre-long uranium radiometric anomaly with surface rock chips to 736ppm U3O8. A scout programme of 8 broadly-spaced drill holes along the central 3 kilometres of the anomaly for a total of 1532.4 metres of drilling was completed in August of this year to assess the general distribution and tenor of uranium mineralisation at depth.


Commenting on these results, Lithic Metals & Energy MD Jim Kerr said 'With a significant surface strike length of uranium anomalism already established we are now seeing corresponding uranium values over reasonable widths at depth.  With drill holes spaced around 500 metres apart, further intersections from completed drill holes could transform Mvula East into quite an interesting target.  We look forward to receiving the remaining drill assays and will announce the results as they come to hand.'


For more information, please visit www.lithicme.com


Or contact

Jim Kerr, Lithic Metals & Energy

Tel: +61 8 9322 5804

David Youngman / Katy Mitchell, WH Ireland Limited

Tel: +44 (0)161 832 2714

Laurence Read / Beth Harris, Threadneedle Communications

Tel: +44 (0)20 7653 9855


  

Table 1. Significant Drill Intersections

Easting

Northing

RL

Depth

Dip

Azimuth

From

To

M

U3O8

ppm

Comments

679743

8254316

901

241.35

-50

225

149.4

151.5

2.1

128



187.96

194

6.04

142

including 42cm @ 826ppm U3O8

198

199.8

1.8

198

including 20cm @ 823ppm U3O8

205

212

7

137

including 60cm @ 734ppm U3O8

222

223

1

135


Notes:

  • Uranium analysis by 25gm pressed powder XRF by Genalysis Laboratories of Perth, Western Australia

  • Significant intervals calculated as a weighted average using a 100ppm U3O8 cutoff, with a maximum of 2m internal waste 

  • Metal values (U) converted to oxide values (U3O8) using a factor of 1.179

  • Grid coordinates in ARC1950_35S projection


About Mvula East

Located on the Mpande licence approximately 60km south-east from the capital city of LusakaZambia, the Mvula East prospect is a 6km-long uranium radiometric anomaly associated with an outcropping unit of metamorphosed dolomite.


The prospect was discovered by airborne radiometric survey, with subsequent ground surveys confirming uranium values up to 736ppm U3O8. 


Uranium Rights Joint Venture 

Lithic Metals and Energy entered into a joint venture with Zambezi Resources (AIM/ASX: ZRL) in May 2008, under which Lithic Minerals and Energy has the right to earn 51% of the uranium rights over 6800km² of four granted exploration licences (Chumbwe, Mpande, Mulungushi and Rufunsa) by spending US$5 million over 2.5 years. 

With respect to the four exploration licences Lithic can increase its uranium rights in the Chumbwe licence to 75% by completing a definitive feasibility study over the Oryx prospect. It can also increase its uranium rights to 75% over the other three licences by completing a definitive feasibility study (DFS) on any one uranium resource. 

Lithic can move to 100% by sole funding mine development after completion of a DFS, assuming Zambezi Resources elects not to contribute



The information in this report that relates to Exploration Results is based on information compiled by Managing Director Jim Kerr (BSc Geol, MSc Min Econ, MSEG). Mr Kerr, a full-time employee of Lithic Metals and Energy is a Member of the Australasian Institute of Mining and Metallurgy and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Kerr consents to the circulation and inclusion in the report of the matters based on the information in the form and context in which it appears.



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