Mantra Resources: Substantial increase in Nyota Resource

    
    Highlights:

    -   Mineral Resource Estimate ('MRE') has increased by 89% from the
        previous statement (44.6 Mlbs);

    -   28.5 Mlbs U(3)O(8) or 34% of the MRE classified as an Indicated
        Resource;

    -   A 200 ppm U(3)O(8) lower cut-off grade has been maintained and the
        average grade of the MRE has increased by 2%;

    -   Majority of the MRE is within 60 metres of surface;

    -   Aggressive and successful exploration drilling has lead to rapid
        growth in the MRE over the past year;

    -   The potential exists to continue to substantially increase the
        resource base with ongoing work;

    -   Further drilling programs at Nyota, aimed at expanding the MRE and
        upgrading the resource classification, have already commenced;

    -   Drill testing of Satellite Targets within the Mkuju River Project,
        but outside the Nyota Prospect, also has the potential to deliver
        promising results after the positive results of an initial appraisal
        (announced 22 January 2010); and

    -   Upgraded MRE to be fully integrated into the Pre-Feasibility Study
        ('PFS'), which is anticipated to be concluded in the March quarter of
        2010.


    -------------------------------------------------------------------------
                     Mkuju River Project - Nyota Prospect
               Mineral Resource Estimate as at 26 January 2010
    -------------------------------------------------------------------------
                             Tonnage           Grade       Contained U(3)O(8)
                        (million tonnes)  (U(3)O(8) ppm)    (million pounds)
    -------------------------------------------------------------------------
    Indicated Resource         25.1             515               28.5
    -------------------------------------------------------------------------
    Inferred Resource          57.3             442               55.8
    -------------------------------------------------------------------------
    The resource is estimated at a lower cut-off grade of 200 ppm U(3)O(8)
    All figures are rounded to reflect appropriate levels of confidence.
    Apparent differences may occur due to rounding
    

PERTH, Western Australia, Jan. 27 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX: MRU, TSX: MRL) is pleased to announce an updated Mineral Resource Estimate for the Company's Nyota Prospect ('Nyota' or 'the Prospect'), part of the wholly owned Mkuju River Project ('MRP' or 'the Project') in southern Tanzania.

This MRE comprises 25.1 million tonnes averaging 515 ppm for 28.5 million pounds of U(3)O(8) classified into the Indicated Resource category, plus Inferred Resources of 57.3 million tonnes averaging 442 ppm for 55.8 million pounds of U(3)O(8).

The MRE has been prepared by independent consultants CSA Global Pty Ltd ('CSA') and is reported in accordance with the Canadian National Instrument 43-101.

The updated MRE includes the results from the 2009 exploration drilling program, including the significant area of mineralisation identified at Nyota NE, and the remainder of the infill drilling and trenching data that were pending when the last revision of the MRE was completed in December.

Mantra's Executive Director Robert Behets said "This latest substantial increase in the MRE again demonstrates the significant potential of the MRP. The Company's aggressive and highly successful exploration drilling has lead to a rapid growth in the resource base over the past year and we are confident that this trend will continue into the future with ongoing work. We believe the outstanding results to date, along with the extensive target areas still to be tested at Nyota and at the Satellite Targets within the broader MRP, highlight the potential of the Project to yield significant mineralisation on multiple fronts and support the emergence of a new uranium province."

Further drilling programs, aimed at further expanding the MRE and upgrading the resource classification, are underway at Nyota. An infill and extension program has commenced and exploration drilling on new target areas at Nyota and within the broader MRP ('Satellite Targets') is also planned.

The updated MRE will now be fully integrated into the PFS which is anticipated to be completed in the March quarter of 2010.

An updated NI43-101 Technical Report is currently being prepared and will be submitted to the Canadian authorities in the coming weeks.

A full version of this release is available on the Company's website (www.mantraresources.com.au), ASX (www.asx.com.au), and SEDAR (www.sedar.com).

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: Robert Behets, Executive Director, Phone: +61 8 9322 6322; Matthew Yates, Executive Director, Phone: +61 8 9322 6322

Organization Profile

MANTRA RESOURCES LIMITED

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890