URU Metals Limited
Positive test results and commencement of drilling
28 April 2017
URU Metals Limited
(“URU Metals” or “the Company”)
Positive Magnetite Test Results
Commencement of Drill Programme at Zebediela
URU Metals is pleased to announce the preliminary results of the magnetite metallurgical test work conducted on an oxide sample from a previously untested zone of the Zebediela Project, located in Limpopo, South Africa. The analysis was carried out by Metanza Laboratories located in Johannesburg, South Africa.
A 104 kg sample of oxide material was tested from a zone located to the northeast of the previous magnetite metallurgical test work, within the area of our existing mineral resource estimate. These results increase our knowledge and indicate positive continuity of the metallurgical results from the magnetite mineralisation with the deposit. A drill programme is now underway to expand the area of defined mineralisation to the north.
Initial Sample Testing
Preliminary test work was carried out by passing the sample of oxide material over a magnetic separator. The results returned a mass recovery of 25.7% of magnetic material. These results are in line with earlier observations, which demonstrated that a composite sample of oxide material consisted of 15.34% magnetite by mass. These tests are encouraging and further tests will be carried out.
The Company is awaiting the results of the acid leaching testing which if positive could decrease the capex of the magnetite concentrate portion of the project, the Company will update the market shortly.
The initial results from this round of metallurgical analysis give us the confidence to continue to advance our studies into the potential of the magnetite mineralisation to provide earlier cash flow from the processing of magnetite concentrate.
As we have already stated, the Company is conducting a series of metallurgical tests and expects the second set of results of the metallurgical test work shortly.
Commencement of drilling
Drilling has commenced today. The objectives of the 1,500 metre drilling programme are to:
1. improve the underlying nickel resource category from indicated to measured;
2. obtain additional oxide material to conduct further metallurgical test work;
3. obtain additional nickel bearing material to conduct further acid and bioleaching metallurgical test work.
The Company will update investors on the progress of the drill programme in due course.
Option to extend the licences at Zebediela
In 2014, the Company acquired the right to extend the Zebediela prospecting licences up to a range of 5km. The Company can confirm that the process to extend the licences will begin shortly and a final decision to extend the area will be taken once the Company has analyzed the drill assays, the further metallurgical test work and the acid leach test results. The Company is awaiting regulatory confirmation of the amendment to the Zebediela prospecting right to include two adjacent prospecting licenses, thereby expanding the project area.
John Zorbas, CEO of URU Metals commented “These initial metallurgical results are very encouraging and we look forward to updating the market once the additional metallurgical work is completed.”
This announcement contains inside information.