thick on surface u zone, page-13

Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration


Uranium Resources plc ('Uranium Resources' or 'the Company')
Locates outcropping Uranium Mineralisation in Tanzania

Overview

# OUTCROPPING URANIUM MINERALISATION IDENTIFIED ON TANZANIAN LICENCES following a short reconnaissance field trip

# PEAK SURFACE SAMPLE ASSAY RESULT OF 975PPM (0.098%) U3O8

# ASSAYS RESULTED FROM TESTING ONE AIRBORNE ANOMALY, WHICH IS PART OF A string of airborne anomalies that trend over 7km within the Mtonya group of tenements

# AN EXTENSIVE FIELD WORK PROGRAMME IS PLANNED FOR THE COMING DRY SEASON in July-August to further evaluate these encouraging early results

Results of Field Work

Uranium Resources plc, the AIM listed uranium exploration and development company, is pleased to announce that it has confirmed the presence of uranium mineralisation on its Tanzanian licences. Positive results from a short reconnaissance field trip in the Mtonya group of tenements in the southern part of Tanzania revealed outcropping uranium mineralisation with a peak assay result of 975ppm (0.098%) U3O8.

These results come from testing one airborne anomaly from a string of airborne anomalies that trend over seven km within the tenement. In light of these results major field work is planned for July-August 2006 during the dry season.

During April 2006 the Company's consultant, Dr Joe Drake-Brockman, undertook a 3 day reconnaissance field trip to the Mtonya group of tenements in southern Tanzania. Aside from preparing for the major field trip in July - August this year, the primary aim of the survey was to carry out initial ground checks of a rank one airborne radiometric anomaly in the northeast corner of prospecting reconnaissance licence (PRL) 3185. This anomaly has been named the Henri anomaly.

Despite limited time and restrictive conditions associated with operating in the wet season, Dr Drake-Brockman was able to locate the anomaly and confirm the presence of uranium as demonstrated by the analysis from the four surface samples taken, which are presented in Table 1. Furthermore Dr Drake-Brockman was able to confirm that Karroo sandstones form the host rock to the Henri anomaly.


Table 1
Sample ID U3O8 ppm Thorium_(ppm)

A0-008 975 9

A0-006 120 6

A0-007 42 8

A0-005 40 13

Traces of yellow secondary uranium mineralisation were noted in sample A0-008. This assay compares well with the average grade of Paladin's Kayelekera deposit (840 ppm eU3O8), which is located in a similar environment in Karroo sediments on the northwestern edge of Lake Malawi.

The airborne anomaly tested is one of a group of anomalies on URA's licence. These results indicate that a number of the remaining airborne uranium anomalies in the vicinity may be similarly caused by near surface uranium mineralisation. The anomalies appear to outline a 7 km long uranium trend that the Company believes has the potential to host a significant uranium deposit.

The Company, in conjunction with its joint venture partner Western Metals Limited, is currently scheduling secondary field work to be undertaken between July and August this year. The first phase of work will be undertaken by foot as the forest cover and steep topography restrict vehicular access. This work will consist of radiometric traverses to confirm the size, continuity and magnitude of the airborne anomalies, sampling of hotspots to verify uranium mineralisation, trenching of mineralised zones to estimate thickness and orientation and geological mapping of trenches and outcrops to establish the parameters controlling the mineralisation. Assuming positive results, the Company will commence planning a drilling programme.

Uranium Resources CEO Hugh Warner said: "These results are great news and I believe confirm our view that the Mtonya group of tenements in the southern part of Tanzania are highly prospective. As a result we and our proposed joint venture partner are initiating a second round of comprehensive field work aimed at identifying drill targets."

As previously announced on 3 April 2006, Uranium Resources has offered a farm-in agreement to Western Metals Limited, a company listed on the Australian Stock Exchange, whereby Western Metals will earn a 40% interest in Uranium Resource's 100% owned Tanzanian Prospecting Licences through the expenditure of A$2 million on the licences. Western Metals must spend a minimum of A$500,000 within 12 months of the completion of the transaction and will be the operator of the joint venture. Western Metals may increase its ownership to 60% through the expenditure of a further A$2 million on the licences. The transaction is subject to the approval of the Western Metals shareholders at a general meeting to be held on 19 May 2006.

Western Metals intends to make a similar announcement to the Australian Stock Exchange. Its announcement will include some diagrams. The Company will shortly make those diagrams available on its website: www.uraniumresouces.co.uk.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Joseph Drake-Brockman who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Drake-Brockman is employed by Drake-Brockman Geoinfo Pty Ltd. Dr Drake-Brockman 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 in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Drake-Brockman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.


**ENDS**

Contacts:


Ross Warner Uranium Resources plc Tel: 07760 487 769
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477

Notes:

Uranium Resources plc was admitted to AIM on 18 February 2005. It was established to acquire uranium assets on a worldwide basis with a primary geographical focus on Africa and Australia. The Company will consider acquisitions covering the full range of projects from exploration to production with a bias towards known, but undeveloped uranium resources and has an initial goal to acquire up to 100 million lbs of in-ground uranium. The Board of Directors is experienced in identifying and evaluating uranium acquisition opportunities and possesses the skills to finance and develop a portfolio of uranium assets. The Company aims to take advantage of the re-organising of the energy producing market and the increasing need for nuclear energy. Renewed interest in uranium exploration and mining with the growth in energy requirements in both the developed and developing worlds means that a shift toward nuclear generation is increasingly likely. Importantly, nuclear energy is the only base-load power source that does not produce greenhouse gases.


This information is provided by RNS
The company news service from the London Stock Exchange

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