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re: jorc compliant resource estimate valhalla uran

Summit Resources increases resource estimate at Valhalla
10:20, Tuesday, 22 August 2006

Sydney - Tuesday - August 22: (RWE Aust Business News) - Summit
Resources Ltd (ASX:SMM) has announced that a revised and independently
validated JORC compliant resource estimate has been modelled and
calculated for the Valhalla uranium deposit in northwest Queensland.
The deposit is located 40 kilometres northwest of Mount Isa on
EPM9221, within the Isa Uranium Joint Venture Agreement (IUJV) area.
At 0.5lb/t (0.023pc) uranium oxide (U3O8) cut-off grade and a
combined indicated and inferred resource of 33.3 million tonnes grading
1.7lb/t (0.077pc) U3O8, the Valhalla resource totals 57 million pounds or
25,900 tonnes of U3O8.
This represents a 56pc increase on the previously reported 1999
JORC compliant resource of 36.5Mlb at Valhalla.
Using a higher, 1.4lb/t (0.064pc) U3O8, cut-off grade there is a
combined indicated and inferred resource of 16.3 million tonnes grading
2.5lb/t (0.113pc) U3O8 for a total of 40.3Mlb or 18,600 tonnes of U3O8.
This higher grade resource contains over 70pc of the reported metal
resource.
Summit said that when compared to the previously reported 1999
resource estimate, the lower cut-off grades used and lower resource
grades reported are justified based on the significant improvement in the
U3O8 price now approaching $US50lb.
This has resulted in the resource tonnes reported being
significantly increased from 11.5Mt to 33.3Mt.
Summit is manager, operator and holds a 50 per cent interest in
the IUJV
Mt Isa Uranium Pty Ltd, a wholly owned subsidiary of Valhalla
Uranium Ltd (ASX:VUL), is the remaining 50 per cent contributing
participant.
Shares of Summit Resources rose 1.5c to $1.495 this morning and
those of Valhalla gained 3c to $1.44.