Paladin Resources Ltd.

Paladin Resources Ltd.

November 09, 2005 08:49 ET

Paladin Resources Limited: Langer Heinrich Uranium Project, Namibia Mineral Resource Estimates Increased Significantly

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Nov. 9, 2005) - Paladin Resources Ltd (TSX:PDN)(ASX:PDN) (Paladin) is pleased to advise that drilling of the previously untested palaeochannel, extending west from the Detail 1 orebody, has returned very encouraging results. This drilling programme consisted of 245 RC drill holes for a total of 11,534m and was confined to certain areas in Detail 2 and Detail 7. Mineral resource specialists Hellman and Schofield (H&S) have completed and independently verified a revised JORC (1999, 2000) Code mineral resource estimate of Langer Heinrich using a 300ppm cut off and a 250ppm cut off. H&S prepared the initial National Instrument 43-101 technical report for Paladin.

The mineral resource estimations are based on derivation of U3O8 grades using downhole gamma logging results and applying standard practice radiometric determination methods for U3O8 determination (eU3O8). Approximately 20% of the mineralized holes were assayed for U308 using analytical chemical methods (XRF) for check purposes.

300ppm Cut Off Resource Estimate

Incorporating the newly defined mineralization H&S have reported the
following resource results.

All Details: 1 to 7 (including new channel drilling):-

300ppm Cut-off Mt Grade % U3O8 Tonnes U3O8
Measured Resources 16.7 0.07 12,350
Indicated Resources 10.1 0.06 6,300
Total 26.8 0.07 18,650

Inferred Resources 32.3 0.07 21,600

The previously reported mineral resources at 300ppm cut off were
24.2Mt of Measured and Indicated Resources grading 0.07% U3O8
(17,100t of contained U3O8) and 22Mt of Inferred Resources grading
0.07% U3O8 (15,700t of contained U3O8).

250ppm Cut Off Resource Estimate

In previous Paladin market releases, when reporting Measured,
Indicated and Inferred resources, a 300ppm cut off has been used,
however the Mining Reserves have been calculated using a 250ppm
cut-off. Estimations of Measured, Indicated and Inferred Resources
will in future use the 250ppm cut off, to fully conform with the cut
off grade used for reporting Proven and Probable ore reserves. The
300ppm cut off reported above has only been given here to allow
comparisons to be made with the earlier market releases (dated 12
February 2005 and 19 September 2005).

The Mineral Resource estimation using a 250ppm cut-off has been
calculated by H&S as follows:-

All Details: 1 to 7 (including new channel drilling)

250ppm Cut-off Mt Grade % U3O8 Tonnes U3O8
Measured Resources 19.9 0.07 13,250
Indicated Resources 12.4 0.06 6,950
Total 32.3 0.07 20,200

Inferred Resources 40.0 0.06 23,800

Compared to the previously reported Mineral Resources (estimated with the 300ppm cut off) the new resource estimates at 250ppm cut off represents an increase in contained U3O8 as follows:

- A 24% increase in the Measured and Indicated Resources (from 17,100t to 20,200t U3O8).

- A 52% increase in the Inferred Resources (from 15,700t to 23,800t contained U3O8).

Additional Resource Potential

The potential for increasing the resource base even further within ML140 is regarded as high. Details 3, 4, 5 and 6 contain mineralization which remains open and future drilling will concentrate in evaluating these areas.


The latest resource drilling work has resulted in a substantial increase in the mineral resources of Langer Heinrich project. Applying a 250ppm cut off has contributed additionally to the resource base of the deposit, with a total of 20,200t of contained U3O8 now identified in the Measured and Indicated Resources categories. There are also 40Mt of Inferred Resources grading 0.06% U3O8 containing 23,800t U3O8 and this represents a substantial upside. The Directors believe a considerable amount of these Inferred Resources can be converted to Measured and Indicated Resources categories following additional drilling. The Langer Heinrich Deposit can now be regarded as a very significant uranium deposit in resource terms.

There is strong expectation therefore that these new resource estimates will contribute significantly to extending both the minelife and an upgrade in production. Additional mine production is regarded as being essential to meet increasing worldwide demand. The opportunity to readily and substantially expand production of the Langer Heinrich mining operation (now under construction) therefore puts Paladin in an excellent position to capitalize on the market opportunities and further benefit its shareholders.

Paladin is an Australian company listed on the Toronto Stock Exchange and the Australian Stock Exchange under the trading symbol "PDN". Paladin is involved in the mineral resource sector with projects both in Africa and Australia. Paladin has a strong emphasis on uranium. With the Langer Heinrich Uranium Project in Namibia currently in development, Paladin believes that, in combination with its Kayelekera Project in Malawi which is currently undergoing a feasibility study, it has control of the two most advanced uranium projects in Southern Africa.

Additional Notes:

The information in this announcement that relates to mineral resources is based on information compiled by Ed Becker BSc (hons), MAusIMM and mineral resource estimation by David Princep BSc MAusIMM, each of whom have more than five years experience in estimation of mineral resources and ore reserves. Mr Becker is a full-time employee of Paladin Resources Ltd. Mr Princep is a full-time employee of Hellman & Schofield Pty Ltd. Each of the above named are "qualified persons" as defined under National Instrument 43-101 and consents to the inclusion of the information in this announcement in the form and context in which it appears.

Caution Regarding Forward Looking Statements: Statements regarding Paladin's plans to develop the Langer Heinrich Project are forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by such statements. There can be no guarantee such statements will be realized. In particular, there can be no assurance that Paladin will be able to successfully build, develop and operate a uranium mine or that it will be able to raise the funds necessary to complete such tasks. Furthermore, there can be no assurance that if completed, any mine will be profitably operated.

Contact Information