PERTH, Western Australia, May 4 /CNW/ - Mantra Resources Limited ('Mantra' or 'the Company') (ASX: MRU, TSX: MRL) is pleased to announce the ramping up of the 2010 exploration and resource infill drilling programs at the Nyota Prospect ('Nyota' or 'the Prospect'), part of the wholly owned Mkuju River Project ('MRP' or 'the Project') in southern Tanzania. A significant trenching program will also be completed concurrently with the drilling.
The Company has taken advantage of lower than expected rainfall during the first three months of the year and has already completed in excess of 20,000 metres of infill drilling. During the same period in 2009 no drilling was completed at Nyota.
The Prospect currently hosts a Mineral Resource Estimate ('MRE') that comprises 25.1 million tonnes averaging 515 ppm for 28.5 million pounds of U(3)O8 classified into the Indicated Resource category, and 57.3 million tonnes averaging 442 ppm for 55.8 million pounds of U(3)O8 classified into the Inferred Resource category.
The drilling programs will comprise diamond core, aircore and open-hole drilling and are being completed with the following objectives:
- To substantially increase the overall resource base by extending
'open' resource areas and testing new priority targets, proximal to
the existing resource areas;
- To upgrade the resource classification of portions of the current MRE
to the Indicated and Measured categories;
- To complete additional sterilisation drilling to facilitate optimal
site selection of waste dumps and site infrastructure; and
- To allow further assessment of the high grade surface mineralisation.
The resource infill drilling program will comprise approximately 2,000 metres of diamond core, 13,000 metres of aircore, and 50,000 metres of open-hole drilling. With the effects of the wet season dissipating, three air rigs are now operating at site. A diamond rig and a fourth air rig are currently being mobilised to site and will be in operation in the coming weeks. The program is anticipated to take approximately four months to complete and will facilitate the announcement of a revised MRE in the fourth quarter of 2010.
Surface mapping and geological model development undertaken during 2009 significantly enhanced the Company's exploration targeting capability and lead to the generation and ranking of numerous priority target areas, proximal to the known areas of mineralisation at Nyota. The initial drill testing of a select number of these targets in late 2009 delivered outstanding results, including the discovery of the Nyota NE deposit which currently comprises 2.5 million tonnes averaging 503 ppm for 2.8 million pounds U(3)O8 of Indicated Resources and 15.4 million tonnes averaging 469 ppm for 15.9 million pounds U(3)O8 of Inferred Resources.
The 2010 exploration drilling program is a continuation of the evaluation of these priority target areas and will comprise approximately 1,000 metres of diamond core and 25,000 metres of aircore drilling on a nominal 100 metre by 100 metre spacing. These target areas are highlighted in Figure 1. This phase of the program is scheduled to be completed by December, and a further revision of the MRE is expected to be announced in early 2011.
Figure 1: Nyota Prospect - Exploration Targets
A further 9,000 metres of open-hole sterilisation drilling is also planned.
Competent Person Statements
The information in this release that relates to in-situ Mineral Resources is based on information compiled by Mr Malcolm Titley of CSA Global Pty. Ltd. He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release.
Mr Titley consents to the inclusion of such information in this release in the form and context in which it appears.
The information in this release that relates to Exploration Results is based on information compiled by Mr. Robert Behets, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr. Behets is a full-time employee of the Company. Mr. Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The QP was satisfied with the verification process and consents to the disclosure in this release.
Mr Behets consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.
Forward Looking Statements
This report contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, uranium prices, demand for uranium, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast' and similar expressions. Persons reading this report are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Information Form.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
SOURCE MANTRA RESOURCES LIMITED
For further information: For further information: Peter Breese, Chief Executive Officer, Tel: +27 82 888 6852; Robert Behets, Executive Director, Tel: +61 8 93226322; www.mantraresources.com.au