PAIV:URU Metals confirms potentially large nickel resources in South Africa
URU Metals (LON:URU) was “extremely pleased” after initial drilling results confirmed the presence of potentially large nickel resources at two of its projects in South Africa, Zebediela and Burgersfort.
Investors cheered today’s drilling update, sending shares in the AIM quoted diversified miner up 5 percent in morning trade in London.
The two projects have been the main focus of the joint venture (JV) set up by URU and Southern African Nickel.
The initial drilling programmes were designed to evaluate the potential for a large near surface nickel mineralisation at the projects and provide enough information for a scoping study.
“The results of the first phase of drilling at our two Nickel Joint Venture targets are extremely pleasing. The drill programme will continue to evaluate the targeted ultramafic bodies to prove the potential of world class-size sulphide nickel deposits,” said non-executive chairman Paul Loudon.
At Zebediela, URU is hoping to prove up an ore body of up to 1 billion tonnes, containing an economically recoverable nickel mineralisation. Drilling has so far defined a large ore body extending over 3,000 metres with an average width of 1,000 metres.
The best drilling results from Zebediela included an intersection of 107 metres grading 0.31 percent nickel and a wider intercept of 320 metres grading 0.23 percent nickel.
Drilling at Burgersfort intersected intervals of 62 metres grading 0.29 percent nickel and 146 metres grading 0.30 percent nickel. Previous exploration at the Burgersfort project identified several shallow nickel targets and three massive targets at a greater depth.
URU is now waiting for assay results from another five holes that have been completed at the two projects.
Under the JV agreement with Southern African Nickel, URU has agreed to contribute US$3.6 million to project development costs for a 50 percent interest in the venture.
In addition to the nickel projects in southern Africa, the company, formerly known as Niger Uranium, also holds interests in uranium projects in Africa and South America.
Shares in URU Metals climbed 0.5 pence (5 percent) to 11 pence on the back of the drilling update this morning. The company currently has market cap of £12.5 million.
