🕐23.03.12 - 12:27 Uhr

URANIUM RESOURCES - HALF-YEAR RESULTS - AMBRIAN PARTNERS - SPECULATIVE BUY



Good morning, Please see below a speculative buy rating from Ambrian Partners for Uranium Resources plc the AIM listed uranium exploration and development company operating in Tanzania, following the Companys Interim Results which were announced this morning. Ambrian Partners are "optimistic that further targeted drilling, based on the knowledge gained from the recently completed drilling, will return economic grades and widths of uranium in an area with strong potential for in-situ uranium extraction." Best regards, Lottie [cid:image004.jpg@01CD08E6.ABF9D670]
[cid:image001.gif@01CD08E5.8777F0D0]
Metals & Mining
23 March 2012
Uranium Resources plc (URA) Price: 3p Recommendation: Speculative Buy Market Cap: �15m Drilling Commences at Mtonya Prospect in Tanzania Uranium Resources, the AIM-listed, Tanzania-focused uranium exploration company, has announced its results for the six months ending 31 December 2011.

Highlights for this period included: * Discovery of stacked mineralised roll-fronts at depth in multiple drill holes with potential for a 10km strike length to the sequence * Internal studies indicate the ore at the Mtonya Project is amenable to in-situ recovery * The roll-fronts are interpreted to have up to 10km of strike length * A 20,000m drilling programme is planned for 2012 * Company continues building a pipeline of quality exploration projects in Tanzania * Cash at end of period was �1.35m The 2012 drilling programme is designed to define roll-front geometries to a sufficient drill density and test the lateral extents of the known sequence of roll-fronts. Comment As outlined previously, the 2011 drilling programme failed to intersect significant uranium mineralisation, but defined strong geological and geochemical evidence for roll-front uranium mineralisation.

We look forward to the results of this drill programme, which we believe will prove or disprove the geological model at Mtonya. The company intends to define uranium deposits that are amenable to in-situ leach mining.

In-situ recovery techniques are common in Kazakhstan and North America; they involve pumping a weakly acidic solution down into the uranium host unit, where the uranium will dissolve into the solution.

The pregnant solution is then pumped back to surface.

In order for this process to work, the host should ideally be a porous sandstone that is sealed by an impermeable base and ceiling so the porous host acts as a conduit for the solution to flow through.

Initial indications are that the Mtonya geology looks set to support this process. With just �1.35m in cash in December, the company will fall short of funding the entire 20,000m drilling programme in 2012.

We expect the company to raise funds to finance ongoing exploration in Tanzania. Recommendation We continue to rate Uranium Resources as a SPECULATIVE BUY.

We are optimistic that further targeted drilling, based on the knowledge gained from the recently completed drilling, will return economic grades and widths of uranium in an area with strong potential for in-situ uranium extraction. Ambrian acts as Nomad and Broker to this company Extel UK Small & Mid Caps 2011 voting is now open.

Ambrian Partners has a strong history of performance in this survey and hopes to maintain this in 2012.

Our metals & mining research is not supported through secondary trading commissions and is provided with the sole aim of giving high-quality objective investment advice to assist our clients.

If you believe the quality of our research merits it, we ask that you vote for us using the link below. Extel UK Small & Mid Caps 2012 voting now open. Please click here to register and vote.

We appreciate your support.
Duncan Hughes, +44 (0)20 7634 4775 ________________________________ Metals & Mining Research
Duncan Hughes Adam Kiley Craig Foggo Jessica Mauss
+44 (0)20 7634 4775 +44 (0)20 7634 4777 +44 (0)20 7634 4762 +44 (0)20 7634 4757
[cid:image002.jpg@01CD08E5.8777F0D0] Ambrian Partners Mining Research team has been in the Top 2 within the Extel UK Small-Cap Metals & Mining Sector for the last three years, and ranked #1 in the Hemscott Rankings Stockbroker and Nomad to AIM Basic Materials Sector for 2Q11 [cid:image003.jpg@01CD08E5.8777F0D0]
________________________________ This document has been approved under section 21(1) of the FMSA 2000 by Ambrian Partners Limited ("Ambrian") for communication only to eligible counterparties and professional clients as those terms are defined by the rules of the Financial Services Authority.

Its contents are not directed at retail clients as Ambrian does not provide investment advisory services to retail clients. Ambrian publishes this document as non-independent research which is a marketing communication under FSA Conduct of Business rules.

It has not been prepared in accordance with the regulatory rules relating to independent research, nor is it subject to the prohibition on dealing ahead of the dissemination of investment research.

It does not constitute a personal recommendation and does not constitute an offer or a solicitation to buy or sell any security.

Neither Ambrian nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication; provided that this shall not exclude liability to the extent that this is impermissible under the law relating to financial services.

All statements and opinions are made as of the date on the face of this document and are not held out as applicable thereafter.

This document is intended for distribution only in those jurisdictions where Ambrian is permitted to distribute its research.

In particular, it is not intended for distribution in and is not directed as persons in the United States. On the date of this document, Ambrian, Ambrians holding company, persons connected with it and their respective directors may have a long or short position in any of the investments mentioned in this document. Ambrian is a member of the London Stock Exchange and is regulated and authorised by the Financial Services Authority.

Ambrian is registered in England and Wales no.

4236075.

Its registered office is Old Change House, 128 Queen Victoria Street, London EC4V 4BJ.

Ambrian is a wholly owned subsidiary of Ambrian Capital plc. ________________________________ AMBRIAN Old Change House, 128 Queen Victoria Street, London EC4V 4BJ Tel: +44 (0) 20 7634 4700 Fax: +44 (0) 20 7634 4701 www.ambrian.com
The information in this e-mail message is confidential and may also be privileged.

It is only intended for the above named addressee/s.

If you are not a named addressee, you must not disclose, copy or take any action in reliance on this e-mail and should delete it from your system.

If you have received this e-mail in error please contact the sender by return e-mail or by telephone +44 (0)20 7634 4700.

We believe, but do not warrant that this e-mail and any attachments are virus free.

You should take full responsibility for virus checking.



Products & Services | Jobs