NACHU GRAPHITE PROJECT - EXPLORATION UPDATE Highlights: • 977 metres of graphitic mineralisation intersected from 1,204 total metres in the first trench (T1) • Further extensive mineralisation found in the next two trenches (T4 and T6) • No deleterious elements seen in outcrop sample analyses. Uranex Limited (ASX: UNX) (“Uranex” or the “Company”) is pleased to provide an update of the exploration activities on the 100% owned Nachu Project. Since the previous announcement the Uranex geology team at the project has discovered further significant intersections of graphitic schists on the tenement. Trenching Observations: Trench T1 The first trench (T1 in Figure 1) in the southern part of the tenement (results partially reported in an announcement on 24 June 2013) was completed on 25 June 2013. A total of 977 metres of graphitic schists were intersected from the 1,204 metres of trenching in T1. The trench heading was approximately 64o west of north and the interpreted strike of the mineralisation is at 13o east of north. The eastern part of this trench was extended to test the area where an outcrop sample assayed 54% Cg. In this extension, graphite mineralisation was found to be present along the entire length of the trench and the subjective assessment is that we have large graphite flakes present at an elevated concentration. However, the geologists have not yet found any continuous area where the very high grade sample may have originated. This area is currently being reviewed and it is anticipated that the trench will be extended further to the east. 251 samples from this trench have been received at the laboratory and are being processed. The summary of the logged intersections can be found in Table 1 below. From the initial observations of the mineralised outcrops the strike of the mineralisation appeared to be oriented generally to the west of north but as more information has become available from the trenching, the dominant strike direction now appears to be east of north. From other regional geology reports, the regional strike of the Mozambique Belt Metamorphics is reported as approximately north-south but this trench is ranging from 15 degrees east to 15 degrees west of north. The observations in the trenches are showing a localised deviation from the main structure. URANEX LIMITED ABN 26 115 111 763 Level 3 15 Queen Street Melbourne VIC 3000 Australia Ph: (03) 9621 1533 Fax: (03) 9621 1544 [email protected] www.uranex.com.au ASX Code: UNX Number of Shares 211.5M Ordinary Shares 188M Options 8.25M Unlisted Options Market Capital A$12.5 million Board of Directors Johann Jacobs Chairman Stephen Hunt Non-executive Director Frank Poullas Non-executive Director Rodney Chittenden Chief Executive Officer John Nethersole Company Secretary Nachu Graphite Results Page 2 of 5 Telephone: + 61 (0)3 9621 1533 www.uranex.com.au Level 3, 15 Queen Street Facsimile: + 61 (0)3 9621 1544 ABN 26 115 111 763 Melbourne VIC 3000 E-mail: [email protected] ASX Code: UNX Australia From metres To metres Interval Length metres Lithology Mineralisation 0.0 65.7 65.7 Schist Graphitic 65.7 71.0 5.3 Schist 71.0 207.4 136.4 Schist Graphitic 207.4 215.0 7.6 Dolomite 215.0 229.0 14.0 Dolomite Graphitic 229.0 250.0 21.0 Schist Graphitic 250.0 308.0 58.0 Dolomite 308.0 312.0 4.0 Schist Graphitic 312.0 332.2 20.2 Pegmatite 332.2 364.6 32.4 Dolomite Graphitic 364.6 375.0 10.4 Schist Graphitic 375.0 396.0 21.0 Dolomite 396.0 413.0 17.0 Amphibolite 413.0 467.0 54.0 Schist Graphitic 467.0 477.3 10.3 Dolomite 477.3 520.0 42.7 Schist Graphitic 520.0 555.0 35.0 Quartz mica schist Graphitic 555.0 575.0 20.0 Biotite schist Graphitic 575.0 595.0 20.0 Quartz mica schist Graphitic 595.0 615.0 20.0 Quartz schist Graphitic 615.0 675.0 60.0 Quartz mica schist Graphitic 675.0 695.0 20.0 Quartz biotite schist 695.0 725.0 30.0 Quartz schist Graphitic 725.0 731.0 6.0 Amphibolite 731.0 745.0 14.0 Quartz schist Graphitic 745.0 752.0 7.0 Quartz mica schist 752.0 855.0 103.0 Quartz schist Graphitic 855.0 864.8 9.8 Dolomite 864.8 930.0 65.2 Quartz schist Graphitic 930.0 1000.0 70.0 Schist Graphitic 1000.0 1029.0 29.0 Quartz mica schist 1029.0 1125.0 96.0 Schist Graphitic 1125.0 1140.0 15.0 Quartz schist 1140.0 1204.0 64.0 Schist Graphitic Table 1 - Geology of Trench T1 Nachu Graphite Results Page 3 of 5 Telephone: + 61 (0)3 9621 1533 www.uranex.com.au Level 3, 15 Queen Street Facsimile: + 61 (0)3 9621 1544 ABN 26 115 111 763 Melbourne VIC 3000 E-mail: [email protected] ASX Code: UNX Australia Trench T4 The next trench (T4 in Figure 1) was completed on 4 July 2013 and was designed to test an area in the south west of the tenement where some outcropping graphitic mineralisation and a narrow high grade zone was discovered during exploration in May 2013. Whilst the narrow high grade zone was confirmed, no other similar occurrences of the high grade zone were found. This trench did identify 274.4 metres of graphitic mineralisation from a total trench length of 436 metres. This trench commenced at 8 898 573 N and 482 965 E and proceeded on heading 32o east of north. The summary of the logged intersections can be found in Table 2. In T4 the strike direction is very close to east-west, this was expected from the initial observations. Trench T6 The final trench (T6 in Figure 1), reported on in this release, commenced on July 5 2013 and was completed on July 14 2013 with a total length of 437.9 metres of graphitic mineralisation recorded from the total trench length of 1,006 metres. Significant sections of this trench were characterised by soil depths to the full depth of the trench. These areas will be tested with some in-trench pits to determine whether there is any mineralisation below the soils. Trench T6 commenced at 8 907 636 N and 485 751 E and proceeded at 270o (west). The summary of the intersections can be found in Table 3. From metres To metres Interval Length metres Lithology Mineralisation 0.0 5.0 5.0 Quartz schist 5.0 6.1 1.1 Schist Graphitic 6.1 8.8 2.7 Pegmatite 8.8 20.0 11.2 Biotite schist, Schist Graphitic 20.0 26.1 6.1 Schist Graphitic 26.1 60.2 34.1 Biotite schist Graphitic 60.2 68.4 8.2 Biotite schist 68.4 135.2 66.8 Biotite schist, Schist Graphitic 135.2 143.0 7.8 Schist 143.0 200.1 57.1 Schist Graphitic 200.1 212.6 12.5 Soil Graphitic 212.6 228.3 15.7 Quartz-biotite schist Graphitic 228.3 236.7 8.4 Soil 236.7 248.9 12.2 Quartz-biotite schist 248.9 269.0 20.1 Biotite schist Graphitic 269.0 278.4 9.4 Fericrete Graphitic 278.4 310.8 32.4 Schist Graphitic 310.8 351.0 40.2 Quartz schist 351.0 358.9 7.9 Fericrete Graphitic 358.9 436.0 77.1 Fericrete Table 2 - Geology of Trench T4 Nachu Graphite Results Page 4 of 5 Telephone: + 61 (0)3 9621 1533 www.uranex.com.au Level 3, 15 Queen Street Facsimile: + 61 (0)3 9621 1544 ABN 26 115 111 763 Melbourne VIC 3000 E-mail: [email protected] ASX Code: UNX Australia In - Trench Pitting In- trench pitting has commenced on T1 and T4 to test selected positions where mineralisation needs to be probed at greater depth. Several pits have been completed to a point where it is impractical to continue in the harder unweathered zone. Other Elements An ICP-MS analysis of the outcrop samples taken in February and May 2013 was also conducted to determine any indication of other mineralisation or deleterious elements in the schists. These results showed that there was no significant levels of deleterious elements which may have had an impact on project approvals or product quality. Analysis for these elements will continue on trench sample composites. From metres To metres Interval Length metres Lithology Mineralisation 0 7.3 7.3 Biotite-Amphibolite 7.3 59.5 52.2 Quartz schist Graphitic 59.5 139.8 80.3 Quartz-mica schist, Pegmatite 139.8 186.3 46.5 Soil to depth of trench 186.3 196.5 10.2 Quartz schist Graphitic 196.5 209.5 13 Pegmatite 209.5 341 131.5 Quartz schist, Soil Graphitic 341 347.4 6.4 Quartz-mica schist 347.4 388.2 40.8 Soil Graphitic 388.2 428.8 40.6 Quartz-mica schist Graphitic 428.8 458.7 29.9 Quartz-mica schist, Soil 458.7 518.2 59.5 Quartz-mica schist Graphitic 518.2 626.8 108.6 Quartz-mica schist 626.8 655.4 28.6 Quartz-mica schist Graphitic 655.4 668.2 12.8 Quartz-mica schist 668.2 687.4 19.2 Quartz-mica schist Graphitic 687.4 709.7 22.3 Mica schist 709.7 732.1 22.4 Amphibole-mica schist Graphitic 732.1 736.6 4.5 Pegmatite Graphitic 736.6 746.5 9.9 Amphibole-mica schist Graphitic 746.5 816 69.5 Quartz-mica schist, Pegmatite 816 834.5 18.5 Schist Graphitic 834.5 858.3 23.8 Soil 858.3 929 70.7 Amphibole-mica schist 929 1006 77 Soil Table 3 - Geology of Trench T6 Nachu Graphite Results Page 5 of 5 Telephone: + 61 (0)3 9621 1533 www.uranex.com.au Level 3, 15 Queen Street Facsimile: + 61 (0)3 9621 1544 ABN 26 115 111 763 Melbourne VIC 3000 E-mail: [email protected] ASX Code: UNX Australia Future work Trenching and pitting work will continue on the planned trenches. Until analytical results are received, visual observations are being made by the geologists, while logging the trenches, of the estimated grade and flake size in the mineralised zones.. This is acting as a guide for decisions on how the remaining planned trenches will be scheduled. Figure 1 – Tenement map showing the location of the planned trenches. Rod Chittenden Chief Executive Officer For further information, please contact: Tel: + 61 (0)3 9621 1533 Information in this report that relates to Exploration Targets, Exploration results, Mineral resources or Ore reserves is based on information compiled by Mr. Johan Erasmus, a Competent Person who is a registered member of the South African Council for Natural Scientific Professions (SACNASP) which is an Recognised Professional Organisation (RPO) included in a list posted on the ASX website. Mr. Erasmus is an consultant of Badger Mining and Consulting, Johannesburg, South Africa who were engaged by the company to undertake this work. Mr. Erasmus has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Erasmus consents to the inclusion of the data in the form and context in which it appears.
MNS Price at posting:
5.4¢ Sentiment: LT Buy Disclosure: Held
(20min delay)