UraMin Inc. ("UraMin" or the "Company") - SRK's Interim Report on the Trekkopje Feasibility Study



    TORONTO, Feb. 19 /CNW/ - UraMin is pleased to announce the results of
SRK's Interim Progress Update Report on the feasibility study for the
Trekkopje Uranium Project in Namibia:

    
    -  Proposed production profile rising to over 8 million lbs per annum
       U(3)0(8) using heap leach technology

    -  Estimated operating costs are US$18.07 per lb U(3)0(8) after V(2)0(5)
       credit (US$20.08 per lb without V(2)0(5) credit) and estimated capital
       expenditure of US$461 million

    -  Estimated pre-tax Internal Rate of Return of 67 per cent and a Net
       Asset Value of US$1.2 billion (using an 8 per cent discount rate)

    -  Resources in the Measured and Indicated category increase over 200 per
       cent to 46.5 million lbs at an average grade of 146ppm U(3)0(8) (using
       a cut-off of 100ppm)
    

    Ian Stalker, Chief Executive, said: "SRK's project scope contemplates an
open pit mine utilising a sodium carbonate/bicarbonate heap leach process at a
large scale mining rate of 100,000 tpd. As a result production would rise to
more than 8 million lbs per annum of U(3)0(8), much higher than previously
envisaged, and Trekkopje would become one of the largest uranium producing
mines in the world. SRK's interim results have exceeded expectations and we
look forward to completing the Feasibility Study and beginning the development
stage later this year."
    Heap leach is the preferred processing technology following successful
column leach test work indicating recoveries of approximately 75 per cent and
as a result SRK has evaluated a production profile for Trekkopje rising to 8
million lbs U(3)0(8) per annum. This compares favourably with the 3.3 million
lbs U(3)0(8) per annum of production previously considered using tank leach
processing. Most importantly water consumption using heap leaching is
substantially lower than would be the case with tank leaching.
    SRK's model envisages a 2 year pre-production period, followed by a
production period of 8 years producing 61 million lbs U(3)0(8) and 20 million
lbs V(2)0(5). A trial mine is planned for the fourth quarter of 2007 and
Trekkopje should commence commercial production in the fourth quarter of 2008
at initial production rates of 4 million lbs per annum scaling up to in excess
of 8 million lbs within 2 years thereafter. Potential exists to achieve
incremental production for the project from the following areas:

    
    -  An additional 75 million tonnes of sulphate rich ore grading
       approximately 148 ppm is excluded from the proposed mine plan but is
       the subject of further testing and could be amenable to acid leaching.

    -  Test work is being undertaken to determine whether lower grade
       material using a cut off grade of 60 ppm could be treated on a "dump
       leach" basis.

    -  Excellent exploration potential exists on the additional exploration
       license area granted to UraMin in November 2006. Significant
       radiometric anomalies on the property are interpreted to delineate
       extensive sedimentary channels, similar to those already drilled on
       the Trekkopje project.
    

    This potential upside could extend the life of mine and sustainability of
production rates of 8 million lbs per annum of U(3)0(8) beyond the initial
mine plan of 8 years with resultant enhanced project economics.
    The selection of a carbonate/bi-carbonate heap leach and ion exchange at
a mine production rate of 100,000 tpd would require a water supply from a
desalination plant of 12 million m(3) per year. It is anticipated that the
cost of construction of a desalination plant may be partially offset by
contributions from other parties reducing the estimated capital expenditure on
the basis of a shared plant.

    Updated Resource Statement

    UraMin is also pleased to announce SRK's NI 43-101 compliant updated
interim resource statement on the Trekkopje Uranium Project in Namibia where
both deposits have seen a substantial conversion of Inferred to Indicated
Resources. Current in-fill drilling is expected to convert most of the total
remaining Inferred resource to Measured and Indicated.

    
    -  Project Measured and Indicated resources are estimated at 144.6
       million tonnes grading 146 ppm eU(3)O(8) (at a 100 ppm cut off grade),
       containing an estimated 46.5 million pounds of U(3)O(8).

    -  Project Inferred resources are estimated at 195.3 million tonnes
       grading 138 ppm eU(3)O(8), containing an estimated 59.3 million pounds
       U(3)O(8).

    -  The Measured and Indicated resource increased 236% from the September
       2006 initial resource estimate, as a result of the conversion of
       Inferred resources, due to increased drill density.

    -  A program of in-fill drilling central to the 200 by 200m grid (5-spot
       drilling) is being completed and is expected to convert much of the
       existing Inferred resource to Measured and/or Indicated resource. An
       updated resource estimate is due in April 2007.


    Trekkopje Project Combined Resources at 100 ppm U(3)O(8) Cut-off grade
    -------------------------------------------------------------------------
    Resource Classification     Resource       Grade   Contained   Contained
                                (tonnes)  eU3O8 (ppm)     Tonnes      Pounds
                                                           eU3O8       eU3O8
    -------------------------------------------------------------------------
    Measured
            Klein Trekkopje    7,096,000         156       1,105   2,435,000
                  Trekkopje            0           0           0           0
    -------------------------------------------------------------------------
         Sub-Total Measured    7,096,000         156       1,105   2,435,000
    -------------------------------------------------------------------------
    Indicated
            Klein Trekkopje  109,631,000         149      16,320  35,978,000
                  Trekkopje   27,835,000         131       3,659   8,067,000
    -------------------------------------------------------------------------
        Sub-Total Indicated  137,466,000         145      19,979  44,045,000
    -------------------------------------------------------------------------
    Measured & Indicated
            Klein Trekkopje  116,727,000         149      17,424  38,413,000
                  Trekkopje   27,835,000         131       3,659   8,067,000
    -------------------------------------------------------------------------
                  Total M&I  144,562,000         146      21,084  46,480,000
    -------------------------------------------------------------------------
    Inferred
            Klein Trekkopje  177,090,000         139      24,610  54,255,000
                  Trekkopje   18,216,000         125       2,284   5,035,000
    -------------------------------------------------------------------------
         Sub-Total Inferred  195,306,000         138      26,894  59,290,000
    -------------------------------------------------------------------------


    Klein Trekkopje Deposit Resources at 100 ppm U(3)O(8) Cut-off grade
    -------------------------------------------------------------------------
    Resource Classification     Resource       Grade   Contained   Contained
    - 100 ppm cutoff            (tonnes)  eU3O8 (ppm)     Tonnes      Pounds
                                                           eU3O8       eU3O8
    -------------------------------------------------------------------------
    Measured
               Conglomerate    2,835,000         143         404     891,000
              SO(4) Rock(*)    4,261,000         164         700   1,544,000
                    Bedrock            0           0           0           0
    -------------------------------------------------------------------------
         Sub-Total Measured    7,096,000         156       1,105   2,435,000
    -------------------------------------------------------------------------
    Indicated
               Conglomerate   88,430,000         144      12,744  28,095,000
              SO(4) Rock(*)   21,076,000         169       3,561   7,851,000
                    Bedrock      125,000         115          14      32,000
    -------------------------------------------------------------------------
        Sub-Total Indicated  109,631,000         149      16,320  35,978,000
    -------------------------------------------------------------------------
    Measured & Indicated
               Conglomerate   91,265,000         144      13,148  28,986,000
              SO(4) Rock(*)   25,337,000         168       4,262   9,395,000
                    Bedrock      125,000         115          14      32,000
    -------------------------------------------------------------------------
                  Total M&I  116,727,000         149      17,424  38,413,000
    -------------------------------------------------------------------------
    Inferred
               Conglomerate  119,579,000         136      16,288  35,909,000
              SO(4) Rock(*)   57,381,000         145       8,307  18,313,000
                    Bedrock      130,000         116          15      33,000
    -------------------------------------------------------------------------
         Sub-Total Inferred  177,090,000         139      24,610  54,255,000
    -------------------------------------------------------------------------
    (*) SO(4) Rock is material for which sulfate (gypsum) is present above a
        process-determined cut-off grade of 0.30% SO(4). The average SO(4)
        grade of sulfate rich ore is not yet determined, as too few assays
        are present to allow grade estimation. SO(4) material may or may not
        need special attention in processing. In-fill RC drilling in progress
        will establish SO(4) grade distribution.


    Trekkopje Deposit Resources at 100 ppm U(3)O(8) Cut-off grade
    -------------------------------------------------------------------------
    Resource Classification     Resource       Grade   Contained   Contained
    - 100 ppm cutoff            (tonnes)  eU3O8 (ppm)     Tonnes      Pounds
                                                           eU3O8       eU3O8
    -------------------------------------------------------------------------
    Measured                           0           0           0           0
    Indicated
               Conglomerate   20,063,000         133       2,659   5,862,000
              SO(4) Rock(*)    7,772,000         129       1,000   2,205,000
                    Bedrock            0           0
    -------------------------------------------------------------------------
                  Total M&I   27,835,000         131       3,659   8,067,000
    -------------------------------------------------------------------------
    Inferred
               Conglomerate   11,395,000         127       1,445   3,186,000
              SO(4) Rock(*)    6,821,000         123         839   1,849,000
                    Bedrock            0           0
    -------------------------------------------------------------------------
         Sub-Total Inferred   18,216,000         125       2,284   5,035,000
    -------------------------------------------------------------------------
    (*) SO(4) Rock is material for which sulfate (gypsum) is present above a
        process-determined cut-off grade of 0.30% SO(4). The average SO(4)
        grade of sulfate rock is not yet determined, as too few assays are
        present to allow grade estimation. SO(4) material may or may not need
        special attention in processing. In-fill RC drilling in progress will
        establish SO(4) grade distribution.
    

    Resources for both Trekkopje and Klein Trekkopje have been updated from
September 2006 by the following:

    
    -  Completion of 200 by 200m spaced drilling at Klein Trekkopje and the
       drilling of a 400 by 400 m area on 50 by 50m spacing to examine grade
       variability:

    -  An 18ppm "background" radiometric eU(3)O(8) base above which
       mineralization exists was confirmed by chemical analyses.  This was
       removed from the down-hole eU(3)O(8) data for all drill holes at both
       Trekkopje and Klein Trekkopje.

    -  Statistical data defined a 35ppm break to corrected eU(3)O(8) data, as
       the basis for establishing grade shells at both deposits;

    -  Data was composited to 2.5m down-hole intervals to allow for the
       likelihood of bulk tonnage mining methods, while permitting vertical
       discrimination of the deposit at the top and bottom of mineralization.

    -  Increased density of drilling allowed for 100m x 100m x 2.5m blocks;
       grade interpolation was by ordinary kriging internal to the grade
       shells, using acceptable variography parameters that mimic geology.

    -  Resources were classified based on a proportion of the range, number
       of composites, and a minimum number of drill holes; standard protocols
       for CIM classifications of Measured, Indicated and Inferred resources.

    -  SO(4) material was defined by a 0.3% SO(4) cutoff, defining a surface
       sub-parallel to the topography surface to define tonnes of SO(4)
       material.

    -  SO(4) grades are not reported as they are based on very limited RC
       assay data, are not currently sufficient, and will be augmented with
       additional information from the current 5-spot drilling in progress.

    -  For the purpose of a Preliminary Assessment, there are a total of 33.1
       million tonnes of Measured and Indicated resource, and 64.2 million
       tonnes of Inferred resource for which sufficient SO(4) is present to
       be listed separately. Approximately 22 million tonnes are currently in
       the plan as normally processable material, pending further testing and
       drill assay results. The remaining SO(4) bearing resource is being
       investigated for possible alternative processing options.
    

    Resources will be updated in April 2007 after inclusion of 5-spot infill
RC drilling. The intent of the 5-spot drilling program is to convert Inferred
resources to Indicated resources and provide additional analytical data to
establish SO(4) grades.

    
    -------------------------------------------------------------------------
    Feasibility   a comprehensive study of a deposit in which all geological,
    study         engineering, operating, economic and other relevant factors
                  are considered in sufficient detail for it to reasonably
                  serve as the basis for a final decision by a financial
                  institution to finance the development of the deposit for
                  mineral production
    -------------------------------------------------------------------------
    U(3)0(8) ppm  Triuranium octaoxide grades in parts per million generated
                  as a result of the conversion of down hole total gamma
                  radiometric probe data to equivalent uranium oxide using
                  probe calibration on known uranium sources and QA/QC
                  procedures. "Industry Standard Procedure"
    -------------------------------------------------------------------------
    Sodium        Chemical formula - Na(2)CO(3), is a sodium salt of carbonic
    carbonate     acid
    -------------------------------------------------------------------------
    V(2)0(5)      Vanadium pentoxide
    -------------------------------------------------------------------------
    SO(4)         Sulphate
    -------------------------------------------------------------------------
    Sedimentary   Fluvial channel containing debris including clasts and
    channel       sediment derived from a source upstream
    -------------------------------------------------------------------------
    Conglomerate  Rock consisting of rounded clasts of gravel surrounded by
                  sand.
    -------------------------------------------------------------------------
    NI 43-101     National Instrument 43-101 - Standards of Disclosure for
                  Mineral Projects, Form 43-101F1 and Companion Policy
                  43-101CP
    -------------------------------------------------------------------------
    Measured      A 'Measured Mineral Resource' is that part of a Mineral
    Resource      Resource for which quantity, grade or quality, densities,
                  shape, and physical characteristics are so well established
                  that they can be estimated with confidence sufficient to
                  allow the appropriate application of technical and economic
                  parameters, to support production planning and evaluation
                  of the economic viability of the deposit. The estimate is
                  based on detailed and reliable exploration, sampling and
                  testing information gathered through appropriate techniques
                  from locations such as outcrops, trenches, pits, workings
                  and drill holes that are spaced closely enough to confirm
                  both geological and grade continuity.
    -------------------------------------------------------------------------
    Indicated     An 'Indicated Mineral Resource' is that part of a Mineral
    Resource      Resource for which quantity, grade or quality, densities,
                  shape and physical characteristics can be estimated with a
                  level of confidence sufficient to allow the appropriate
                  application of technical and economic parameters, to
                  support mine planning and evaluation of the economic
                  viability of the deposit. The estimate is based on detailed
                  and reliable exploration and testing information gathered
                  through appropriate techniques from locations such as
                  outcrops, trenches, pits, workings and drill holes that are
                  spaced closely enough for geological and grade continuity
                  to be reasonably assumed.
    -------------------------------------------------------------------------
    Inferred      An 'Inferred Mineral Resource' is that part of a Mineral
    Resource      Resource for which quantity and grade or quality can be
                  estimated on the basis of geological evidence and limited
                  sampling and reasonably assumed, but not verified,
                  geological and grade continuity. The estimate is based on
                  limited information and sampling gathered through
                  appropriate techniques from locations such as outcrops,
                  trenches, pits, workings and drill holes.
    -------------------------------------------------------------------------
    5 spot        Drill pattern that includes 4 drill holes on a square
    infill        pattern with an additional 5th hole drilled at the centre
    drilling      of the square
    -------------------------------------------------------------------------
    eU(3)O(8)     Triuranium octaoxide grades in parts per million generated
    (ppm)         as a result of the conversion of down hole total gamma
                  radiometric probe data to equivalent uranium oxide using
                  probe calibration on known uranium sources and QA/QC
                  procedures. 'Industry Standard Procedure'.
    -------------------------------------------------------------------------
    Lb            Pound
    -------------------------------------------------------------------------
    Uranium       heavy silvery-white metallic element found in several
                  minerals, notably uraninite and carnotite
    -------------------------------------------------------------------------
    SRK           SRK Consulting (US) Incorporated, managing engineers for
                  the feasibility study of the Trekkopje Uranium Project
    -------------------------------------------------------------------------
    Tpd           Tonnes per day
    -------------------------------------------------------------------------
    

    The resource information contained in this announcement has been reviewed
by Allan Moran, Principal Geologist with SRK. He is the Qualified Person
overseeing the Trekkopje Project drilling and resource estimation activities
for the purposes of NI 43-101 compliance. Mr. Moran has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking, to qualify as a
Qualified Person for the purposes of this announcement.
    Resource estimation by SRK, follows CIM (Canadian Institute of Mining and
Metallurgy) resource classification categories, and resources were determined
using background-corrected eU(3)O(8) radiometric probe data, ordinary kriging
for grade estimation and industry standard block modeling techniques. Industry
accepted "Best Practices Guidelines" were followed in data collection,
documentation, analyses, and reporting. UraMin has a QA/QC program in place
for sample analytical data and down-hole radiometric probe data. The stated
Trekkopje Project resource estimates are based on entirely new drilling data
collected in 2006 by UraMin, and does not include any historical drill hole
data.
    The Interim Progress Update Report represents the latest view of project
concepts, designs and likely projected outcomes based on the work conducted to
date, industry accepted practice and certain project specific assumptions.
Readers are cautioned that the results reported are not definitive and maybe
subject to change as further work is undertaken. Project outcomes may
ultimately be materially different from those projected in this report.

    Background Information:

    UraMin (www.uramin.com) was founded in February 2005 and its shares are
traded on the AIM market of the London Stock Exchange and the Toronto Stock
Exchange under the symbol 'UMN'. The Company was established to acquire and
develop mineral properties, predominantly uranium. The Company currently has
working capital of approximately US$95 million and a market capitalization of
approximately US$1 billion on an undiluted basis.
    UraMin is currently focusing on the development of its advanced
exploration projects at Trekkopje in Namibia, Bakouma in the Central African
Republic and Ryst Kuil in South Africa. Through the South African joint
venture, UraMin also enjoys additional prospecting license applications for
important uranium deposits in the Karoo, South Africa. No assurance can be
given that remaining applications for the prospecting rights in the Ryst Kuil
Channel or elsewhere in South Africa will be successful.

    Forward-Looking Statements:

    This press release contains statements that are "forward-looking".
Generally, the words "expect," "intend," "estimate," "will" and similar
expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause our actual results, performance or achievements,
or that of our industry, to differ materially from those expressed or implied
in any of our forward-looking statements. Statements in this press release
regarding the Company's business or proposed business, which are not
historical facts, are "forward looking" statements that involve risks and
uncertainties, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
statements.
    Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.




For further information:

For further information: Stephen R. Dattels, Executive Deputy Chairman,
Tel: +44 7917 739249; Ian Stalker, Chief Executive Officer, Neil Herbert,
Finance Director, Tel: +27 11 783 5056; London - Canaccord Adams Limited,
Robin Birchall/Tyler Broda, Tel: +44 20 7050 6741; Toronto - Steve Vaughan,
(416) 643-6924

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