URU Metals Limited
(“URU Metals” or “the Company”)
Zebediela Project Update
URU Metals is pleased to update shareholders on progress at the Zebediela Nickel Project, located in Limpopo Province, South Africa.
· The Company has commenced metallurgical test work to assess the potential to process nickel mineralisation at the Zebediela Nickel Project using acid leaching on existing drill core
· If the results are positive, acid leaching could result in a substantial capital expenditure savings, improving returns at the project
· The Company is also assessing the options for processing the magnetite mineralisation associated with the nickel at Zebediela
· A revised drill programme is planned following the metallurgical results
URU Metals has commenced metallurgical test work to investigate the potential to process the nickel mineralisation at the Zebediela Nickel Project using acid leaching. Processing and upgrading of the nickel was previously envisaged to be done by froth flotation resulting in expected recoveries of around 54% of the total nickel content. The Company believes that, if successful, acid leaching could generate a significant capital expenditure saving relative to froth floatation improving the returns from the project and potentially improving the recoveries of nickel in excess of 54%, further bolstering the project’s economics. Considering the potentially significant changes to the project’s economics, Directors felt it was in the Company’s best interests to defer the commencement of drilling until after the metallurgical analysis was completed. Infill drilling will be undertaken in order to provide further material for additional metallurgical test work and resource definition.
Alongside this work, the Company has also commenced metallurgical test work on magnetite mineralisation that is associated with the nickel mineralisation. The Company continues to believe that the magnate mineralisation could provide the potential to generate cash flow prior to the commencement of nickel extraction.
The Zebediela Nickel Project has a combined inferred and indicated mineral resource estimate of 1.5 billion tonnes of nickel. A Preliminary Economic Assessment (“PEA”) was completed in 2012 based on a NI 43-101 compliant indicated resource of 485.4 million tonnes at an average grade of 0.245% nickel and an additional inferred resource of 1,115.1 million tonnes at a grade of 0.248% nickel, using a cutoff grade of 0.1% nickel. This mineral resource estimate refers to total contained nickel and around 58% of the total nickel is contained in the sulphide minerals present within the Sulphide Zone, and therefore potentially recoverable.
John Zorbas, CEO of URU Metals commented “This is an exciting time for the Company and we look forward to updating the market on our other projects and corporate developments in the near future.”
This announcement contains inside information.
For further information, please contact:
|URU Metals Limited|
(Chief Executive Officer)
|+1 416 504 3978|
|Northland Capital Partners Limited|
(Nominated Adviser and Joint Broker)
Edward Hutton / Matthew Johnson
|+ 44 (0) 203 861 6625|
|Beaufort Securities Limited|
|+ 44 (0) 207 382 8300|
|SVS Securities Plc|
|+44 (0) 203 700 0093|
All drill core and coarse reject sample preparation was directed by Liana Spies, a member of Extreme Geo Services C.C. Liana Spies is a member of and registered with the South African Council for Natural Scientific Professions (SACNASP) as a Professional Natural Scientist, Reg no 400112/05. Extreme Geo Services C.C. is an exploration and mineral resource consulting and contracting firm, which has been providing services and consultation to the international mineral industry and financial institutions since 2003.
Neither Extreme Geo Services C.C. nor Liana Spies has, or had previously, any material interest in URU Metals or the mineral properties in which the Company has an interest. Extreme Geo Services C.C.’s relationship with the Company is solely one of professional association between client and independent consultant. All work done on the Zebediela Project for the Company by Extreme Geo Services C.C. is prepared in return for professional fees based upon agreed commercial rates.