tanzanian uranium confirmed

URANEX NL
ABN 26 115 111 763
Level 2, 28-42 Ventnor Avenue, West Perth
Western Australia 6005
PO Box 466, West Perth, Western Australia 6872
TEL + 61 (08) 9486 9002
FAX + 61 (08) 9486 9003
[email protected]
www.uranex.com.au
Tanzanian Uranium Confirmed
16th March 2006
Uranex is pleased to announce that highly encouraging uranium values
to 2.1kg/t U3O8 have been obtained from the Bahi Project area.
Background
The Bahi Project area is located in central Tanzania and incorporates an
extensive closed drainage system that has developed over weathered uranium
rich granites. This drainage system ultimately captures all soluble uranium
leached from the underlying rocks and provides transport to suitable trap sites
along the drainages and ultimately into the 60x40km Bahi salt lake. Uranex
has secured tenement coverage over the lake and much of the peripheral
drainage trends with granted and offered tenements with a total area of
4,710km2.
The primary exploration focus of the Bahi Project is the 2,040km2 Bahi salt
lake and the five large deltas formed by the discharge of the channels which
drain into an area of 27,000 km2 of Archaean granite and granite gneiss
terrain.
Initial Reconnaissance Program
Wet weather has to date prevented testing of the primary objective. An initial
reconnaissance program completed in November 2005 was designed to
investigate a number of significant airborne radiometric anomalies within the
peripheral drainage system, to the north-west of Lake Bahi. All of the assay
results from that program have now been received.
Pit Results
Six areas adjacent to meandering channels that drain into Lake Bahi were
investigated by pitting. A total of 134 hand-dug pits, generally to a depth
of 3 metres, were completed. Of these pits 43 (32%) returned anomalous
values greater than 100ppm U3O8 (0.1kg/t). Visible orange carnotite
mineralisation is present in a number of the pits.
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Highly encouraging results were obtained from two of the pits;
BPIT164: assayed 2,079ppm U3O8 (2.1kg/t) from 2.5m to 3.0m
BPIT76: assayed 1,187ppm U3O8 (1.2kg/t) from 2.5m deep to 3.0m
at the bottom of the pit.
RAB Results
Forty six rotary air-blast (RAB) holes were completed within three of the
pitted areas. Of these shallow RAB holes, 23 (51%) returned anomalous
values of greater than 100ppm U3O8 (0.1kg/t). Five of the drill holes
returned values greater than 200ppm U3O8 (0.2kg/t).
RAB hole BBH0038 returned an intercept of 1.0m from a depth of 2.0m of
326ppm U3O8 (0.32 kg/t).
These results are highly encouraging and confirm the widespread
mobilisation of uranium in the surficial environment in drainage
peripheral to Lake Bahi.
Next Exploration Phase
An aggressive program of pitting, auger and diamond drilling is scheduled to
commence in May. This program will continue until the onset of seasonal
rains in November.
The program will include:
�� Follow-up drilling of the good results obtained from the recently
completed program.
�� Test of a large number of airborne radiometric anomalies within and
adjacent to the drainage systems. Pitting and auger drilling will be
utilised to initially test these potential trap-sites.
�� The Bahi playa lake and its deltas will be tested once they dry sufficiently
to allow drill access. Diamond drilling will commence in the vicinity of the
historic drill hole that intersected 0.15m of 2.3kg/t U3O8.
Conclusion
Uranex believes that these results reflect the high prospectivity of the Bahi
Project area and further support the Company’s view that its extensive
tenement holding in Tanzania has potential to host economic uranium
discoveries.
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GEOFFREY J WALLACE
DIRECTOR/COMPANY SECRETARY
Information in this announcement relating to exploration results is based on data compiled by Mr
Harry Wilhelmij who is a Fellow of the Australasian Institute of Mining and Metallurgy, and who is a
consultant of the Company. Mr Wilhelmij has sufficient relevant experience to qualify as a Competent
Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr Wilhelmij consents to the inclusion of the data in the form and context
in which it appears.