Ann: Exploration Update , page-6

Proactive Comment
http://www.proactiveinvestors.com/companies/news/4925/marenica-energy-drilling-identifies-western-extension-of-namibian-uranium-resource-4925.html

Tuesday, March 23, 2010

Marenica Energy Drilling Identifies Western Extension Of Namibian Uranium Resource

International uranium company Marenica Energy (ASX: MEY) has reported that a fresh round of wide-spaced drilling at its 80%-owned Marenica Uranium Project in Namibia, Southern Africa, has identified a significant western extension of the resource.

The results reinforce the substantial exploration upside within the Marenica leases and the potential for further additions to the resource inventory, which was increased by 86% earlier this month.

A new program comprising 5,000 metres of Aircore drilling commenced at Marenica last month. The new drilling is designed to test regional targets defined by airborne radiometrics and geological modelling.

Drilling at target area MA5,located directly west of the existing Marenica resource area, has defined a broad area of near-surface, secondary uranium mineralisation associated with shallow calcrete cover and weathered bedrock, representing a potential western extension to the current resource.

Intersections as high as 259ppm eU3O8 over 1.4m were returned from limited downhole probing of wide-spaced drilling.

While only a limited number of holes at the target have been gamma-probed, the company said initial results are encouraging.

These are exciting results from a relatively early stage of the new drilling program, said Marenica Energys CEO, John Young.

Wide-spaced aircore drilling has defined a zone of near-surface mineralisation immediately west of the resource zone which will be priority focus for resource drilling moving forward."

Also of note is the potential for primary uranium mineralisation at Target Area MA6 in the Southern Dome area. The discovery of primary uranium deposits would be a company changing event for Marenica and remains a key objective for our exploration programs in parallel with work to progress the current resource towards production, Young added.

To date, 244 holes have been drilled for approximately 2,400 metres at target areas MA4, MA5, MA9 and MA10. Down-hole gamma probing of the drilling is currently underway, although only limited results are available so far.

Reconnaissance of the southern target area MA6 has commenced, with initial observations indicating that the airborne radiometric anomaly defining the target is associated with anomalous leuco-granites, on the periphery of the Southern Domestructure.

Mapping and ground surveys at the target area will be completed during April, with a view to defining drill targets for potential granite-hosted uranium mineralization.

The company said this indicates the potential for primary uranium mineralisation hosted in the granites in this area, opening up an exciting new exploration front at the Marenica Project.