UraMin Inc.
AIM : UMN
TSX : UMN

UraMin Inc.

January 15, 2007 09:30 ET

UraMin Inc.: Announced High Grade Drilling Results From the Bakouma Uranium Project

LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 15, 2007) - UraMin (TSX:UMN)(AIM:UMN) is pleased to announce initial drilling results from the Patricia deposit, the largest of the 10 uranium deposits making up the Bakouma Project in the Central African Republic ("CAR"):

- High Grade mineralisation was encountered with significant intersections at the Patricia Uranium Deposit being:

- 33 m at 0.14% U3O8 from 69 m depth in drill hole PRC004

- 6 m at 0.41% U3O8 from 42 m depth in drill hole PRC007

- 64 m at 0.30% U3O8 from 41 m depth in drill hole PRC010, with 8 m at 0.61% U3O8

- 59 m at 0.34% U3O8 from 32 m depth in drill hole PRC018, with 8 m at 0.88% U3O8

- 29 m @ 0.20 % U3O8 from 55 m depth in drill hole PRC014

- 38 m @ 0.26 % U3O8 from 47 m depth in drill hole PRC017

- 59 m @ 0.34 % U3O8 from 32 m depth in drill hole PRC018

- 18 m @ 0.30 % U3O8 from 52 m depth in drill hole PRC021


-Drilling programme ahead of schedule with 66% of the historically defined Patricia mineralisation delineated

- Open ended mineralisation at depth and high grade intervals identified indicate potential to exceed the existing historic exploration target of 18,000 tonnes U3O8 for Bakouma

It is anticipated that a NI43 101 compliant resource statement will be completed on the Patricia deposit during the first quarter of 2007.

In the past six months, UraMin has completed 11,453 meters of reverse circulation percussion drilling in 119 drill holes. Thus far, a total of 98 drillholes have been completed in the Patricia deposit with a further 21 drill holes in other deposits. Assay values for 17 of these drill holes have been received and assay results from 49 drill holes are pending and are expected by the end of January 2007 with samples for the balance of the holes drilled to date undergoing sample preparation on site.

The Bakouma Uranium Project consists of ten documented uranium deposits in close proximity to one another. A review of the studies conducted by Compagnie des Mines d'Uranium de Bakouma and Societe de l'Uranium Centrafricain between 1969 and 1977 reveals an exploration target in excess of 18,000 tonnes (41 million lbs) of U3O8 at an average grade in excess of 0.27% U3O8 containing an estimated 18,000 tonnes (41 million lbs) of U3O8.

The aforementioned historic estimates do not comply with NI 43-101 standards and should not be relied on as they do not use mineral category definitions used in codes recognized by NI 43-101. Current drilling is focused primarily on delineating the uranium mineralisation that was previously identified by these studies for the Patricia Uranium Deposit, which has a historically reported target of 8,000 tonnes U3O8.

Assay results for the first 17 of the Patricia drill holes have indicated U3O8 values ranging between 0.14% (over 33 meter composite width) to 0.41% (over 6 meter composite width). Within these composited intervals individual samples, representing vertical intersection widths of 1 meter, range in grade from 0.01% to as high as 2.1% U3O8. These results confirm the occurrence of uranium mineralisation at grades and widths similar to that documented by the previous studies.

In the current drilling program uranium mineralisation has been intersected from depths below surface ranging from 8 meters to 50 meters extending down to 105 meters (the maximum depth for the results of the drilling thus far) where the mineralisation is open ended in 8 of the 24 holes reported. UraMin intends to test this depth extension by deepening certain of the drill holes.

Historical information indicates that the maximum drill depth achieved on the Patricia deposit was 107 meters. UraMin has improved this and is consistently reaching depths below 100 meters and extending as deep as 130 meters below surface where indications of the presence of mineralisation, as determined by hand held total gamma scintillation counters, exists in these deeper intersections. These are to be confirmed by XRF assay shortly.

The current 15,000 meter drill programme on Patricia is designed to drill the deposit on 50 meter centers. Modeling of this deposit is underway and it is planned to complete a NI 43-101 compliant mineral resource inventory by the end of March 2007.

Drilling will continue to focus on the Bakouma area to delineate a further target of 8,000 tonnes U3O8 at the Pato and Pama deposits by mid 2007. In addition, delineation of uranium mineralisation on a further seven historically reported deposits will continue in 2007.

Ian Stalker, Chief Executive of UraMin, said:

"Initial exploration results for the Patricia deposit at Bakouma have exceeded expectations. This work confirms the potential for resources to be delineated close to the surface making them amenable to extraction using open pit mining methods. Furthermore the open ended mineralisation and high grade intervals identified thus far could result in the historical resource target of 18,000 tonnes U3O8 being exceeded.

We believe that the previous work done on the project in the late 1970's, will allow the Company to fast track the preparation of its own feasibility study, including confirmation drilling and possible strike extensions. The partnership formed with the Government of the CAR and its interest in the project will greatly facilitate its development and benefit the Bakouma region."

Mr. G M Greenway, Pr.Sci.Nat. (SACNASP), MSAIMM, Divisional Manager of Snowden Mining Industry Consultants, is the qualified person responsible for the Bakouma drilling program and has verified the data reported above. Mr Greenway is a consultant to UraMin, with no interest in the company and has consented to the inclusion in this announcement of his name in the form and context in which it appears. Exploration data is acquired by UraMin using best practice quality assurance and quality control protocols. Reverse circulation percussion chip assay samples are collected by appropriately qualified personnel and are assayed at SANAS accredited laboratories in Johannesburg, South Africa; Set Point Laboratory (SANAS No. T0223) and ISO/IEC 17025, SGS Lakefield Research Africa (SANAS No. T0169) and Mintek Analytical Services (SANAS No. T0042). U3O8 assays are performed using x-ray fluorescence spectrometry on a pressed powder pellet. Quality control procedures follow industry best practice and include the use of blind control samples.

GLOSSARY

Feasibility Study

A comprehensive study of a deposit in which all geological, engineering, operating, economic and other relevant factors are considered in sufficient detail for it to reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.

Lbs

Pounds

Uranium

Heavy silvery-white metallic element found in several minerals, notably uraninite and carnotite.

U3O8

Triuranium Octaoxide

Background Information:

UraMin (www.uramin.com) was founded in February 2005. The Company was established to acquire and develop mineral properties, predominantly uranium.

UraMin is currently focusing on the development of its advanced exploration projects at Trekkopje in Namibia, Bakouma in the Central African Republic and Ryst Kuil in South Africa. Through the South African joint venture, UraMin also enjoys additional license applications for important uranium deposits in the Karoo, South Africa. No assurance can be given that remaining applications for the prospecting rights in the Ryst Kuil Channel or elsewhere in South Africa will be successful.

Forward-Looking Statements:

This press release contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

These forward-looking statements speak only as of the date they are made.

This announcement and the information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction, including the United States.

Contact Information

  • UraMin Inc.
    Ian Stalker
    Chief Executive Officer
    +27 (0)11 783 5056
    or
    UraMin Inc.
    Neil Herbert
    Finance Director
    +27 (0)11 783 5056
    Website: www.uramin.com
    or
    Toronto
    Steve Vaughan
    (416) 865-7931
    or
    Canaccord Adams
    Robin Birchall
    Nominated Advisor
    +44 (0) 20 7050 6500
    or
    Financial Dynamics
    Ben Brewerton / Edward Westropp
    +44 (0)20 7831 3113