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North River Resources to take 50 pct stake in uranium exploration company



North River Resources (LON:NRRP) said this morning it is acquiring a 50 per cent stake in a company which holds two uranium licences in Namibia.

The news lifted the stock, and by 10.50 am, North River was trading up 5.45 per cent at 1.45 pence.

Brandberg Energy was created by Extract Resources (ASX:EXT, TSE:EXT) and holds exclusive prospecting licences 3327 and 3328, located near the old tin mining town of Uis in the northwest of the country.

NRR will receive its half share in Brandberg in return for pumping US$800,000 into the company.

Separately, a horizontal loop electromagnetic survey over 3327 and 3328 has identified of two uranium target areas.

Priority target Orawab is interpreted as a palaeochannel at least 14 kilometres long, between 100-1000 metres wide and up to 50 metres deep.

A secondary target, Ringo, appears to include a less prominent but still significant palaeochannel to the southwest of the Orawab target, which is up to 7 kilometres long, 50-500 metres wide and 30 metres deep.

The Ringo target is considered a possible downstream extension of the Brandberg uranium occurrence identified in historical literature, North River said.

Managing director David Steinepreis said: "We believe that the results of the horizontal loop electromagnetic survey are encouraging, indicating at least two palaeochannels of significant length, width and depth.

“Both EPLs are located in a globally significant and highly prospective uranium district, and we look forward to the commencement of our 1,100 metre RC drilling programme, through which we hope to gain further insight into the resource potential of these nuclear fuel properties."

Broker Ocean Equities welcomed the announcement.

North River has a broad spectrum of assets in its portfolio and by entering into joint venture agreements such as this it can retain upside in continued exploration without detracting from its other areas of focus, it said.

The primary target for North River is the Namib mine which Ocean expects to yield further encouraging exploration results in the near term.

“Clearly the two targets identified on Brandburg’s EPLs are interesting due to their scale, with further geological support coming from the historical references of uranium being found in the area. Results from the reverse circulation drilling will immediately show whether the targets are uraniferous or not, after which step out drilling can begin to develop a resource.

“Namibia is one of the most important sources of uranium and while the formal moratorium is in place, the companies that already have EPLs granted have a distinct advantage,” Ocean added.


http://www.proactiveinvestors.co.uk/companies/news/37952/north-river-resources-to-take-50-pct-stake-in-uranium-exploration-company-update-37952.html