Paladin Energy Ltd

TSX : PDN
ASX : PDN


Paladin Energy Ltd

January 13, 2014 09:02 ET

Paladin Energy Ltd: Manyingee Uranium Project, Western Australia Updated Mineral Resource

- Indicated Mineral Resource now 15.7Mlb

- Additional Inferred Mineral Resources of 10.2Mlb

- Confirms and expands on existing Mineral Resource

PERTH, WESTERN AUSTRALIA--(Marketwired - Jan. 13, 2014) - Paladin Energy Ltd (TSX:PDN) (ASX:PDN) ("Paladin" or the "Company") is pleased to announce that a revised mineral resource estimate for the Manyingee Deposit, effective January 13, 2014, conforming to both the JORC(2012) Code and Canadian National Instrument 43-101 has now been completed and the results are reported below using a 250ppm and 0.2m minimum thickness cut off (the "2014 Mineral Resource Estimate").

Updated Mineral Resource Estimate (250ppm U3O8 and 0.2m cut off)

Unit Mineral Resource Category Volume
m
3
Tonnes
M
Density
g/cm
3
Grade
ppm U
3O8
Pounds
M
Metal
t
U2 Indicated 860,370 1.46 1.7 885 2.85 1,292
Inferred 784,983 1.33 1.7 830 2.45 1,110
U3a Indicated 1,561,529 2.65 1.7 895 5.25 2,380
Inferred 1,108,662 1.88 1.7 960 3.98 1,806
U3b Indicated 1,533,046 2.61 1.7 850 4.88 2,214
Inferred 689,457 1.17 1.7 790 2.04 925
U3c Indicated 693,416 1.18 1.7 745 1.94 881
Inferred 423,742 0.72 1.7 790 1.25 569
U4 Indicated 277,732 0.47 1.7 765 0.80 362
Inferred 175,602 0.30 1.7 680 0.45 203
Total Indicated 4,926,093 8.37 850 15.71 7,127
Inferred 3,182,445 5.41 850 10.17 4,613
Figures may not add due to rounding.

Compared to the previous Mineral Resource estimate announced in 1999 (reported at a 300ppm U3O8 cut off) (the "1999 Mineral Resource") the 2014 Mineral Resource Estimate outlined herein represents a minor reduction in contained U3O8 for the indicated portion of the 1999 Mineral Resource and an increase in the Inferred portion. The 2014 Mineral Resource Estimate is based on a combination of recently validated historical drilling and 96 Rotary Mud and Diamond holes drilled by Paladin in late 2012. The validation of the historical data, along with Prompt Fission Neutron (PFN) probe logging of recent drill holes, has resulted in a change to the disequilibrium factor used to determine uranium grades. This change has resulted in a reduction in the Indicated Mineral Resource grade; however the overall grade of the deposit has increased due to revised geological modelling and estimation techniques.

More detail on the modelling techniques and estimation parameters used for the 2014 Mineral Resource Estimate as well as a plan of drill hole locations and typical cross section can be found in the additional information attached to this announcement. A NI 43-101 Technical Report for the Manyingee deposit will be filed on SEDAR in due course. All sampling, analytical and test data used in this Mineral Resource Estimation has been verified by the Qualified Person.

ADDITIONAL POTENTIAL

Manyingee is scheduled as the next new project development for the Company but will not be considered until the uranium price is sufficiently incentivising. Meanwhile it is expected that additional infill drilling planned for later in 2014 will enable the conversion of a portion of the current Inferred Mineral Resources into the Indicated category. In addition, this drilling will be targeted at identifying representative areas of mineralisation suitable for In-Situ Recovery processing in order to select a location for a field leach trial. Completion of a field leach trial, post gaining all necessary approvals, is seen as the next major step in further defining the potential of the Manyingee Deposit.

Declaration

The information in this announcement that relates to exploration results and mineral resources is based on information compiled by David Princep B.Sc., FAusIMM(CP). Mr Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves", and as a Qualified Person as defined in Canadian National Instrument 43-101. Mr Princep is a full-time employee of Paladin Energy Ltd and consents to the inclusion of the information in this announcement in the form and context in which it appears.

Caution regarding forward-looking information

Except for historical information contained in this news release, this news release contains "forward-looking information" within the meaning of securities laws of applicable jurisdictions. The forward-looking information includes, but is not limited to, statements with respect to Paladin's intentions to undertake additional infill drilling and to complete a field leach trial, and its expectations regarding the ability of such activities to advance the conversion of a portion of the current inferred mineral resources into the indicated resource category. Assumptions upon which such forward-looking information is based include that exploration programs will proceed as planned. Management believes these assumptions are reasonable. However, forward-looking information involves known and unknown risks, uncertainties and other factors, many of which are outside the control of Paladin, and its officers, employees, agents or associates. Such risks, uncertainties and other factors include, but are not limited to, those factors discussed in the section entitled "Risk Factors" in Paladin's most recent Annual Information Form available under Paladin's profile on SEDAR at www.sedar.com. Although Paladin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Actual results, performance or achievements may vary materially from those suggested by such forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information and Paladin assumes no obligation to update such information, except as required by applicable law.

To view Additional Information associated with this release, please visit the following link: http://media3.marketwire.com/docs/921460_ai.pdf

Contact Information