Exploration

Exploration commenced on four EPLs east, west and south of the Kayelekera Mining Lease, EPLs 168,169 and 170 (granted 12 December 2005) and EPL 225 (granted 12 December 2007).

Exploration in 2008 identified the Mpata Prospect on EPL 170 and the Juma Prospect on EPL 169. Two short RC scout drilling programmes totalling 5,839m in 50 holes were completed on the Mpata Prospect in September 2008 and June 2009. The drilling identified two mineralised arkose units within a relatively small area with significant intersections including:

Hole

From
(m)

To
(m)

Thickness
(m)

Provisional Grade
eU3O8

MP17

18

28

10

600ppm

MP31

23

29

6

350ppm

MP35

24

27

4

750ppm

MP49

14

19

4

490ppm

The intersections above have a cut-off grade of 200ppm U3O8 and maximum width of included waste of 1m and cover two zones of approximately 200m of strike length each. Scout RC drilling at the Juma Prospect, 5km south of the Kayelekera mine site, started in August 2008.

Exploration evaluated the Uliwa limestone deposit, 70km south of Karonga, in October/November 2008. Geological mapping and limited RC drilling identified an area of limestone of sufficient quality to be used in tailings neutralisation at Kayelekera.

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