scoping study confirms 1 dollar per share, page-7

PALADIN RESOURCES LTD
A.C.N. 061 681 098
245 CHURCHILL AVE, SUBIACO WESTERN AUSTRALIA 6008
PO BOX 201, SUBIACO WESTERN AUSTRALIA 6904
TELEPHONE: (+61 8) 9381 4366 FAX: (+61 8) 9381 4978
EMAIL: [email protected]
Web: www.paladinresources.com.au
Ref:F5384
6 August 2004
Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
Langer Heinrich Uranium Project Bankable Feasibility Study
Positive Mineral Resource Estimates
Paladin is pleased to advise that Hellman and Schofield Pty Ltd (H&S), the mineral resource specialists employed for the Langer Heinrich Bankable Feasibility Study, have completed new resource estimates. These are reported here according to the JORC (1999) Code.
H&S’s evaluation work has confirmed and significantly increased the total resources previously estimated with the tonnage of contained U3O8 increasing by 20% (at a 100ppm U3O8 cut-off) and 28% (at 300ppm and 500ppm cut-offs).
Mineral Resources now stand at:-
• 89.3Mt ore at 0.046% U3O8 containing 41,200t U3O8 (100ppm cut-off)
• 42.7Mt ore at 0.076% U3O8 containing 32,300t U3O8 (300ppm cut-off)
• 21.2Mt ore at 0.113% U3O8 containing 24,100t U3O8 (500ppm cut-off)
The new resource estimates have significantly increased the amount of Measured Resources to 10.2Mt from the previous 2.0 Mt.
Details of the new estimates at a 300ppm U3O8 cut-off are:
• Measured Resource 10.2Mt ore at 0.067% U3O8 (6,900t of contained U3O8)
• Indicated Resource 4.4Mt ore at 0.060% U3O8 (2,600t of contained U3O8)
• Inferred Resource 28.1Mt ore at 0.080% U3O8 (22,800t of contained U3O8)
TOTAL 42.7Mt ore at 0.076% U3O8 (32,300t of contained U3O8)
This evaluation work by H&S has confirmed that a large body of uranium mineralisation exists at Langer Heinrich. These new results and reinterpretation of the existing data by Paladin indicates that, with restricted additional drilling, sufficient Inferred Resources can be converted to an Indicated Resource category in order to achieve a 10 year mine life based on only one open pit within the Detail 1 area, rather than having to develop three pits within Details 1, 2 and 3 as required by the current mine schedule.