🕐16.01.13 - 12:54 Uhr

URANIUM RESOURCES - OPTIVA BUY NOTE "ON THE CUSP OF PROVING A WORLD-CLASS U
RANIUM RESOURCE IN TANZANIA"



Hi there, Please find Optiva Securities BUY research note on Uranium Resources (URA), the AIM quoted uranium exploration and development company focussed on finding world-class uranium deposits in Tanzania which are amenable to in-situ recovery, the most commonly used, economically effective and environmentally benign method of uranium extraction.

The Company has entered a transformational period as it gears up to announcing a maiden resource Q1 2013 at its flagship Mtonya uranium project.

In 2012, URA completed 26,485m of drilling at Mtonya, which confirmed that the lateral extents of significant sandstone-hosted roll-front uranium mineralisation are amenable to in-situ recovery.

Interestingly, the roll-front widths, thicknesses and tenor seen at Mtonya are remarkably similar to other world-class roll-front deposits including those found in Wyomings Wind River Basin and Powder River Basin where Cameco and Uranium One operate successful ISR facilities. Please see Broker Optiva’s full note attached and summary below, which notes “With a market cap of just £18m for URA its a small price to pay in terms of option value for a company that could be on the cusp of proving up a world class resource, the details of which will become clearer within the next three months.

To this end we recommend investors buy into Uranium Resources now at today’s depressed share price of around 2.45p, ahead of an impending milestone JORC event being announced and the uranium sector rebound.”
[Description: cid:image002.png@01CDF3DB.019CE7E0] JORC RESOURCE IN Q1 2013 In this updated research note for Uranium Resources (URA) we have re‐evaluated the situation ahead of an anticipated maiden JORC resource announcement in Q1 2013.

URA undertook an extensive and expanded 26,485 metre drilling programme in 2012 on its flagship project at Mtonya, Tanzania.

This returned economic grades of uranium above 250 ppm and provided the exploration team with further information on the deposits rollfront style mineralisation and suitability for a low cost in‐situ leaching mining operation.

We believe positive sentiment may soon start returning to the uranium market following negative reaction to the commodity in the aftermath of Japan’s Fukushima incident almost two years ago in March 2011.

The medium to long term outlook for uranium remains strong.

It is interesting to note the number of global planned and proposed nuclear reactors at 484, is similar to those pre Fukushima at 483.

China (171) and India (57) account for most of this expansion (Source: World Nuclear Association, 1 Jan 2013).

At the corporate level, the recent US$1.3bn bid by Russian mining company ARMZ to acquire the remaining 49% stake in Canada’s Uranium One Inc.

and take it private, may be an indicator that the sector is set for a rebound. INVESTMENT RECOMMENDATION The announcement of a JORC resource within the next quarter will represent a landmark event for URA and should lead to the Company being taken more seriously by investors and consequently, result in a market re‐rating and higher share price.

A JORC statement would put both the Company and its key project on the radar screen of uranium miners who will be keen to keep a close watch on future exploration result data and development plans on what has potential to be a world class uranium resource.

A JORC resource at Mtonya will also enable analysts to make a valuation comparison with similar and nearby deposits in Tanzania such as Mkuju River, which contains 93.3m lbs of uranium at the indicated and measured level.

The acquisition of Mkuju for A$1bn two years ago by ARMZ shows that there is interest from larger companies to secure high quality commercial deposits in the country.

The similar geological features of both Mkuju and Mtonya, along with positive findings from last year’s drilling and exploration programme at Mtonya provide us with confidence that a sizeable resource can be proved up.

URA may also look to apply the knowledge they have gained in developing Mtonya to other basins in Africa to gain new uranium prospective acreage.

A market cap of just £18m for URA is a small price to pay in terms of option value for a company that could be on the cusp of proving up a world class resource, the details of which will become clearer within the next three months.

To this end we recommend investors buy into Uranium Resources now at today’s depressed share price of around 2.45p, ahead of an impending milestone JORC event being announced and the uranium sector rebound.
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