URU Metals Limited Zebediela Project Update (9240N)

TIDMURU

RNS Number : 9240N

URU Metals Limited

01 November 2016

URU Metals Limited

("URU Metals" or "the Company")

Zebediela Project Update

URU Metals is pleased update shareholders on progress at the Zebediela Nickel Project, located in Limpopo Province, South Africa.

Highlights:

-- Prospecting licences that make up the Zebediela Nickel Project renewed for an additional two years

-- The Company has submitted an application to consolidate the three prospecting licences into one to reduce costs going forward

-- A new work programme is planned for 2017 that includes drill testing potential extensions of the nickel mineralisation, infill drilling, metallurgical studies and the completion of an updated mineral resource estimate

   --    URU is investigating the potential for processing the by-product magnetite mineralisation 
   --    Further details on the 2017 work programme will be provided in due course 

-- Mr Richard Montjoie and Mr Innes Buurman have joined the Company as Exploration Manager and Project Geologist respectively for the Zebediela Project

Further information on the Zebediela Project including photographs and maps are available on the Company's website www.urumetals.com

Licence renewal and consolidation plan

The Company is pleased to announce that South African Department of Mineral Resources ("DMR") has renewed the three prospecting licences that make up the Zebediela Nickel Project for an additional two years. The renewal of the licences follows a successful site visit by the DMR in June 2016.

The prospecting rights that make up the Project are held by URU's wholly owned South African Subsidiary Lesego Platinum Uitloop ("LPU"). LPU has also made an application to the DMR to consolidate the three prospecting licences into one licence area which the Directors believe will reduce costs going forward.

New work programme

A new work programme is planned for 2017 that includes drill testing potential extensions of the nickel mineralisation, infill drilling, metallurgical studies and the completion of an updated mineral resource estimate. This programme expands on the previous planned drilling programme which was postponed following technical problems encountered by the drilling contractor.

Magnetite potential

As part of its new work programme, the Company will investigate the potential processing of the magnetite resource at Zebediela in the oxide and sulphide zones as part of the Preliminary Economic Assessment of the project. The Directors believe the potential magnetite resource in the oxide zone alone could generate revenues prior to nickel and magnetite production in the sulphide zone. A bulk modal analysis of a composite sample of oxide zone material during the Preliminary Economic Assessment (PEA) showed that the sample consists of 15.34% magnetite by mass. Stripping of oxide zone material required to access the sulphide zone is in the order of 182 Mt. A preliminary estimated amount of magnetite present in the stripped material will be 27 Mt (non-compliant), potentially leading to significant early revenue prior to revenue from nickel production.

Technical Team

The Company is pleased to announce that Richard Montjoie and Innes Buurman have joined the Company in the role of Exploration Manager and Project Geologist respectively.

Mr Montjoie holds a B.Sc. Honours in Geology from the University of Witwatersrand, South Africa, and is fellow of the Geological Society of South Africa (GSSA) and a member for the Society of Economic Geologists, and a registered member of the South African Council for Natural Scientific Professions (SACNASP). Richard has over 14 years' experience in mineral project development globally. Richard has been involved in several exploration programs in South Africa and Northern Canada, including various Ni-PGE, diamond, coal, coal bed methane and gold exploration and mining projects. Richard provides sound geoscientific input in development planning to ensure effective data acquisition, management and project execution. Richard successfully acted as Project Manager for a 39 Moz platinum feasibility study, advancing the project from exploration stage to a completed bankable feasibility study with proven and probable reserves, on time and under budget, managing all aspects of the programme, from exploration programme design to various licencing applications.

Mr Buurman holds a B.Sc. Honours degree in Geology from the University of the Free State, South Africa and is currently studying for a M.Sc. degree in Economic Geology at the University of Witwatersrand, South Africa. Innes is a member of the Geological Society of South Africa (GSSA) and a candidate member of the South African Council for Natural Scientific Professions (SACNASP). He is experienced in exploration, project development and small scale mining, pertaining to PGE's in the Bushveld Complex; Tin - Tantalum - Niobium in Rwanda; and Gold in Zimbabwe, Mozambique and Democratic Republic of Congo.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

 
URU Metals Limited 
 John Zorbas 
 (Chief Executive Officer)              [phone] 
Northland Capital Partners Limited 
 (Nominated Adviser and Joint Broker) 
 Edward Hutton / Matthew Johnson        + 44 (0) 203 861 6625 
 

Project background

The prospecting rights that make up the Zebediela Nickel Project are held by URU's wholly owned South African Subsidiary Lesego Platinum Uitloop ("LPU"). The Project is situated approximately 7km north east of Mokopane (formerly Potgietersrus), in Limpopo Province, South Africa. The project area is located less than 5km from the N1 national highway linking two major cities, and access onto the farms is by all-weather tar and dirt roads. In addition, the national Johannesburg to Polokwane railway line has a siding on the property.

A previously completed NI 43-101 Mineral Resources Estimate at the Project defined:

   --      An Indicated resource of 485.4 Mt at a grade of 0.245% Ni 
   --      An Inferred resource of 1.115.1 Mt at a grade of 0.248% Ni 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 01, 2016 03:00 ET (07:00 GMT)