TIDMURA
RNS Number : 9221Z
Uranium Resources PLC
23 March 2012
Uranium Resources Plc / Market: AIM / Epic: URA / Sector:
Exploration
23 March 2012
Uranium Resources Plc ('Uranium Resources' or 'the Company')
Half-Year Results
Uranium Resources Plc, the AIM listed uranium exploration and
development company operating in Tanzania, announces its results
for the six month period ended 31 December 2011.
Highlights
-- Discovery of stacked mineralised roll-fronts at depth in multiple drillholes
-- Internal studies indicate the ore at the Mtonya project
(Mtonya) is amenable to in-situ recovery
-- The roll-fronts are interpreted to have up to 10km of strike length
-- A 20,000 m drilling programme is planned for 2012
-- Fieldwork confirms Gundua's potential for Rare Earth Elements (REE)
-- Company continues building a pipeline of quality exploration projects in Tanzania
Uranium Resources Managing Director, Alex Gostevskikh, said,
"During the period under review, Uranium Resources has made
remarkable progress. Our exploration model for Mtonya, which was
tested by drilling deep holes in 2010, led to the discovery of
roll-front uranium mineralisation in 2011. In 2012, we are taking
Mtonya to a new stage by launching a transformative 20,000 m
drilling programme."
Managing Director's Report
During the period under review we have continued seeing strong
progress at Mtonya. In December 2011, the Company completed its
7,936 m diamond drilling programme which confirmed the existence of
mineralised roll-fronts at depth. The new data suggests that Mtonya
bears many similarities in its geology, lithology, and mineralogy
to the well-known roll-front deposits of Kazakhstan and
Wyoming.
Lukimwa, approximately 28 km southwest of Mtonya, was subject to
a ground gamma-ray spectrometric survey and geochemical sampling.
Our interpretation of the results suggests the continuous nature of
geological features between our Mtonya and Lukimwa project
areas.
A limited field mapping and sampling programme at Gundua (Eland)
confirmed our geological model, which interprets the project as a
carbonatite system prospective for REE.
At Foxy, we executed a follow-up reconnaissance programme with
the objective of evaluating the potential for roll-front uranium
mineralisation amenable to in-situ recovery.
Uranium Resources continues assembling and collating data for
its considerable land tenure in Tanzania in a concerted effort to
build a pipeline of quality exploration projects.
Exploration Update
Mtonya
2011 programme
The Company's exploration model is based on the
well-substantiated premise that the neighbouring Nyota project,
approximately 60 km to the north of Mtonya, is a small segment of a
regional mineralised roll-front feature, most of which has no
surface exposure. The Nyota project, which is owned by ARMZ and
operated by Uranium One, has an indicated and measured resource of
93 Mlb U3O8.
Uranium Resources interprets Nyota as part of a regional
roll-front that was uplifted by a regional normal fault.
Consequently, this segment of the roll-front was altered by surface
oxidation and eroded, forming narrow, thin, and disconnected lenses
of ore that is dominated by secondary uranium minerals such as
autunite and uranocircite.
The near-surface uranium mineralisation at Mtonya remains a
valid exploration target, but its significance is viewed as
inferior in comparison to the deep mineralisation that may yield
substantially larger deposits amenable to in-situ recovery.
The 2011 diamond drilling programme targeted both shallow and
deep sandstone-hosted mineralisation in the northeastern part of
the Mtonya tenement. The drilling tested specific areas selected
after a thorough interpretation of the results of the 2010
programme. The holes were set in an irregular pattern about 300 m
apart with a limited number of infill holes with 50-150 m between
them.
The 38 diamond drillholes drilled at Mtonya to date have defined
three redox tiers, each 100-150 m thick and produced a number of
uranium mineralised intercepts. These three tiers of oxidation are
interpreted to host at least three roll-fronts at depths of 220-280
m from surface.
Our 2012 drilling campaign is designed to generate sufficient
data to significantly extend the known mineralisation and
ultimately lead to a maiden resource estimate being completed in
2013.
In-situ recovery
The internal studies of lithology and mineralogy carried out on
samples of mineralised drill core suggest persuasive similarities
with the uranium deposits of Kazakhstan, namely arkosic composition
of the sandstone, low content and composition of carbonate minerals
(<5%), ore mineralogy (uraninite, coffinite), and similar trace
element geochemical signature (Se, Mo, V, Sc).
This affinity with Kazakh roll-front deposits implies the
amenability of Mtonya's mineralisation to in-situ recovery, the
most economically efficient and environmentally benign method of
uranium extraction. Examples of successful in-situ recovery uranium
operations include Cameco's 1 Mlbpa Crow Butte mine in Nebraska and
the 2 Mlbpa Smith Ranch-Highland mine in Wyoming.
A discovery of sizable roll-front deposits amenable to in-situ
recovery will undoubtedly fundamentally alter uranium prospectivity
of Tanzania.
2012 drilling programme
The Company has designed the 2012 Mtonya drilling programme to
pursue two main objectives:
-- defining the uranium roll-front geometries with sufficient drill density;
-- aggressively testing lateral extents of the known uranium roll-fronts.
The programme will comprise approximately 20,000 m of drilling
and is planned to lead to the development of a maiden resource in
2013.
Lukimwa
Lukimwa's structural settings as well as radiometric and
magnetic signatures bear many similarities with Mtonya.
Importantly, it is situated at the southwest end of the same
structural corridor and is hosted in the favourable Karoo
sandstone.
The results of 2011 field reconnaissance and geochemical
sampling have been encouraging and the Company is planning to
execute a limited scout drilling programme at Lukimwa in 2012.
Gundua (Eland)
Gundua (Eland) was initially identified as a contrast airborne
radiometric anomaly of intermediate intensity. The Company carried
out a comprehensive data collation and analysis, and developed a
geological model for Gundua whereby the project was interpreted to
be a REE target hosted by a carbonatite system in Precambrian
basement rocks.
The 2011 programme at Gundua consisted of geological mapping and
rock/grab sampling followed by mineralogical studies of rock
samples. Geological mapping confirmed the presence of a 4 km by 3
km alkaline complex with associated strontium-rich carbonatite
dykes bearing bastnaesite, synchysite, and monazite
mineralisation.
Surface sampling undertaken during the programme demonstrated
elevated REE values throughout the project area and one grab sample
reported over 4.28% REE (over 4.22% Light REE and 0.06% Heavy
REE).
These results demonstrate that Gundua is a valid exploration
target for REE, which warrants a more detailed field study in
2012.
Other regional licenced areas
The Company is establishing itself as a uranium-focused
exploration company and we view Mtonya as our priority project. We
are also confident that new exploration opportunities will be
generated on our other licensed areas.
Financial Results
I am reporting a pre-tax loss for the six months ended 31
December 2011 of US$1,894,000 (6 months ended 31 December 2010
US$877,000; Year ended 30 June 2011: US$1,159,000). The loss for
the six month ended includes a share based payment charge of
$1,761,000 (6 months ended 31 December 2010 US$229,000; Year ended
30 June 2011: US$229,000).
Outlook
Uranium Resources plc is entering a very exciting period: the
Company's Mtonya project has robust potential which is supplemented
by a portfolio of assets from which to drive growth and create
significant shareholder value. Furthermore, the Company benefits
from a strong management team that is rapidly advancing Uranium
Resources' assets.
Our previous drilling campaigns led to the discovery of
laterally-extensive roll-front uranium mineralisation at Mtonya and
have taken Mtonya to a decidedly different level. We expect the
next level to be the development of a maiden resource, a
significant step towards realising the Company-making potential of
Mtonya.
Finally, I would like to take this opportunity to thank my
fellow directors and our shareholders for their dedication and
support and look forward to what I believe is a very promising
future.
Alex Gostevskikh
Competent Persons declaration
The information in this statement that relates to Exploration
Results, Mineral Resources or Ore Reserves is based on information
reviewed by Alex Gostevskikh, Managing Director of Uranium
Resources plc, who is a Member of the Mining and Metallurgical
Society of America. Mr. Gostevskikh 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' and as a qualified person under the AIM
Note for Mining, Oil and Gas Companies. Mr. Gostevskikh consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears.
**ENDS**
For further information please visit www.uraniumresources.co.uk
or contact:
Alex Gostevskikh Uranium Resources plc Tel: +255 (0) 752
968 062
Ross Warner Uranium Resources plc Tel: +44 (0) 7760
487769
Samantha Harrison Ambrian Partners Ltd Tel: +44 (0) 20 7634
(Nomad) 4700
Jeremy King/ Optiva Securities Ltd Tel +44 (0)20 3137
Jason Robertson 1904
Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Felicity Edwards St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2011
Half-year Half-year Year ended
ended ended
31 Dec 2011 31 Dec 2010 30 June 2011
(Unaudited) (Unaudited) (Audited)
(Restated)
US$'000s US$'000s US$'000s
Notes
Share based payment charge (1,761) (229) (229)
Other administrative expenses (389) (648) (857)
Total administrative expenses
and group operating loss (2,150) (877) (1,086)
Interest payable - - (75)
Interest receivable 256 - 2
Loss before taxation (1,894) (877) (1,159)
Taxation - - -
------------- ------------- --------------
Loss for the period (1,894) (877) (1,159)
Other comprehensive income
Exchange differences on
translating foreign operations (152) 53 204
------------- ------------- --------------
Total comprehensive loss
attributable to the equity
holders of the parent (2,046) (824) (955)
Loss per share (cents)
Basic and diluted 3 (0.33) (0.20) (0.24)
============= ============= ==============
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2011
31 Dec 2011 31 Dec 2010 30 June 2011
(Unaudited) (Unaudited) (Audited)
(Restated)
Note US$'000s US$'000s US$'000s
Assets
Non-current assets
Property, plant & equipment - 13 -
Exploration & evaluation
assets 4 10,594 6,482 7,704
------------- ------------- -------------
10,594 6,495 7,704
Current assets
Other receivables 20 42 411
Cash and cash equivalents 1,350 1,070 4,137
------------- ------------- -------------
1,370 1,112 4,548
------------- ------------- -------------
Total Assets 11,964 7,607 12,252
------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (157) (207) (160)
------------- ------------- -------------
Total Liabilities (157) (207) (160)
------------- ------------- -------------
Net Assets 11,807 7,400 12,092
============= ============= =============
Equity
Share capital 946 785 946
Share premium 15,743 11,081 15,743
Foreign exchange reserve (256) (255) (104)
Retained losses (4,626) (4,211) (4,493)
Total Equity 11,807 7,400 12,092
============= ============= =============
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2011
Share Share Foreign Retained Total shareholders
capital premium currency losses equity
translation
reserve
US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July 2010
(restated) 668 8,598 (308) (3,563) 5,395
Total comprehensive
income - - 53 (877) (824)
Transactions with
owners:
Share based payments - - - 229 229
Issued share capital 117 2,538 - - 2,655
Cost of share issue - (55) - - (55)
--------- --------- ------------- --------- -------------------
Total transaction
with owners 117 2,483 - 229 2,829
--------- --------- ------------- --------- -------------------
Balance at 31 December
2010 (restated) 785 11,081 (255) (4,211) 7,400
--------- --------- ------------- --------- -------------------
Total comprehensive
income - - 151 (282) (131)
Transactions with
owners:
Issue of share capital 161 4,662 - - 4,823
Total transaction
with owners 161 4,662 - - 4,823
--------- --------- ------------- --------- -------------------
Balance at 30 June
2011 946 15,743 (104) (4,493) 12,092
--------- --------- ------------- --------- -------------------
Total comprehensive
income - - (152) (1,894) (2,046)
Transactions with
owners:
Share based payments - - - 1,761 1,761
--------- --------- ------------- --------- -------------------
Total transaction
with owners - - (152) 1,761 1,761
--------- --------- ------------- --------- -------------------
Balance at 31 December
2011 946 15,743 (256) (4,626) 11,807
--------- --------- ------------- --------- -------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2011
Half-year Half-year Year ended
ended ended
31 Dec 2011 31 Dec 2010 30 June 2011
(Unaudited) (Unaudited) (Audited)
(restated)
US$'000s US$'000s US$'000s
Cash flows from operating activities
Loss for the period (1,894) (877) (1,159)
Adjustments for non-cash items:
Interest income (2) - (2)
Share-based payments charge 1,761 229 229
Depreciation - 2 2
Foreign exchange - - 75
Decrease/ (Increase) in receivables 2 (22) -
(Decrease)/ Increase in payables (7) 19 (39)
------------ ------------ -------------
Net cash used in operating activities (140) (649) (894)
------------ ------------ -------------
Investing activities
Funds used for exploration
and evaluation (2,890) (1,382) (2,872)
Interest received 2 - 2
------------ ------------ -------------
Net cash used in investing activities (2,888) (1,382) (2,870)
------------ ------------ -------------
Financing activities
Proceeds from share application/issue
of shares - 2,655 7,478
Cost of share issues - (55) (55)
------------
Net cash from financing - 2,600 7,423
------------ ------------ -------------
(Decrease)/ increase in cash
and cash equivalents (3,028) 569 3,659
Foreign exchange movements
on cash 241 (50) (73)
Cash and cash equivalents at
beginning of the period 4,137 551 551
------------ ------------ -------------
Cash and cash equivalents at
the end of the period 1,350 1,070 4,137
============ ============ =============
NOTES TO THE UNAUDITED HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS ENDED 31 DECEMBER 2011
1 General information
Uranium Resources Plc ('the Company') is domiciled in England.
The condensed consolidated half-year accounts of the Company for
the six months ended 31 December 2011 comprise the Company and its
subsidiaries (together referred to as 'the Group').
The condensed half-year accounts for the period 1 July 2011 to
31 December 2011 are unaudited. In the opinion of the Directors the
condensed half-year accounts for the period presents fairly the
financial position, and results from operations and cash flows for
the period in conformity with the generally accepted accounting
principles consistently applied. The financial information
contained in this half-year report does not constitute statutory
accounts as defined by section 434 of the Companies Act 2006.
The comparatives for the full year ended 30 June 2011 are not
the Company's full statutory accounts for that year. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain a statement under section 498 (2) -
(3) of the Companies Act 2006.
2 Accounting policies
The condensed half-year accounts have been prepared using
policies based on International Financial Reporting Standards (IFRS
and IFRIC interpretations) issued by the International Accounting
Standards Board ("IASB") as adopted for use in the EU. The
condensed half-year accounts have been prepared using the
accounting policies which are expected to be applied in the Group's
statutory financial statements for the year ending 30 June
2012.
Basis of preparation and going concern
The operations of the Group are currently being financed from
funds which the Company raised from private and public placings of
its shares. The Group has not yet earned revenue as it is still in
the exploration phase of its business. The Group is therefore
reliant on the continuing support from its existing and future
shareholders.
The Group will require further funds to be raised to meet the
entirety of its budgeted operating and committed drilling costs for
the 2012 drilling programme. The Directors are confident that they
will be able to raise the additional funds from current and new
shareholders and be able to continue to meet their obligations, as
they fall due. The financial statements have, therefore, been
prepared on the going concern basis.
Restatement of presentational currency
As reported and disclosed in the audited financial statements
for the year ended 30 June 2011, effective from 1 July 2010, the
Group's presentation currency changed from pounds sterling ('GBP')
to the US dollar ('$'). For the purposes of the interim financial
statements the comparative financial information for the 6 month
period ended 31 December 2010 has been re-presented in US dollars.
The comparatives were translated for the statement of financial
position using $:GBP exchange spot rate on that date, being
$1.5468:GBP1, for equity balances at the prevailing historical rate
and for the statement of comprehensive income using the average
$:GBP exchange rate during the year being $1.5653:GBP1. Resulting
exchange differences have been taken to the foreign exchange
reserve.
The same accounting policies, presentation and methods of
computation are followed in the condensed set of financial
statements as applied in the Group's latest annual audited
financial statements, except as described below:
a) Standards, amendments and interpretations effective:
The following new standards and amendments to standards are
mandatory for the first time for the Group for the financial year
beginning 1 July 2011. Except as noted, the implementation of these
standards did not have a material effect on the Group:
Standard Effective
date
-------------------------------------------------- ------------
IAS 24 (Revised) Related party disclosures 1 January
2011
Improvements to IFRSs 1 January
(2010) 2011
IFRS 7 (Amendments) Disclosures - transfers 1 July 2011
of financial assets
b) Standards, amendments and interpretations effective but not
relevant for the Group:
Standard Effective
date
--------------------------------------------------------- ----------
IFRIC 14 / IAS 19 Limit on a defined benefit 1 January
(Amendment) asset, minimum funding requirements 2011
and their interaction
c) Standards, amendments and interpretations that are not yet
effective and have not been early adopted:
Standard Effective
date
--------------------------------------------------------- ------------
IFRS 1 (Amendments) Severe Hyperinflation and 1 July 2011
removal of fixed dates for *
first-time adopters
IAS 12 (Amendment) Deferred tax: recovery of 1 January
underlying assets 2012 *
IAS 1 (Amendment) Presentation of items of other 1 July 2012
comprehensive income *
IFRS 10 Consolidated financial statements 1 January
2013 *
IFRS 11 Joint arrangements 1 January
2013 *
IFRS 12 Disclosure of interest in 1 January
other entities 2013 *
IFRS 13 Fair value measurement 1 January
2013 *
IAS 27 (Amendment Separate financial statements 1 January
2011) 2013 *
IAS 28 (Amendment Investments in associates 1 January
2011) and joint ventures 2013 *
IAS 19 (Amendment Employee benefits 1 January
2011) 2013 *
IFRIC 20 Stripping costs in the production 1 January
phase of a surface mine 2013 *
IFRS 7 (Amendment Disclosures - offsetting financial 1 January
2011) assets and financial liabilities 2013 *
IAS 32 (Amendment Offsetting financial assets 1 January
2011) and financial liabilities 2014 *
IFRS 9 Financial instruments 1 January
2015 *
==================== =================================== ============
* Not yet endorsed by the EU. The Group is evaluating the impact
of the above pronouncements but they are not expected to have a
material impact on the Group's earnings or shareholders' funds.
3 Loss per share
The basic loss per share has been calculated using the loss
attributable to equity shareholders for the financial period of
US$1,894,000 (six months ended 31 December 2010: US$877,000; year
ended 30 June 2011: US$1,159,000) and the weighted average number
of ordinary shares in issue of 581,743,750 (31 December 2010:
448,198,913; 30 June 2011: 488,875,257).
A separate diluted loss per share has not been calculated
because any potentially dilutive shares would decrease the basic
loss per share, thus being anti-dilutive.
4 Exploration and evaluation assets
Unaudited Unaudited Audited
31 Dec 2011 31 Dec 2010 30 June
US$'000s US$'000s 2011
US$'000s
Exploration and evaluation
Cost and net book value
At beginning of period 7,704 5,008 5,008
Additions 2,890 1,410 2,483
Transfers - - 15
Currency translation adjustment - 64 198
-------------
Total cost and net book value 10,594 6,482 7,704
--------------------------------- ------------- ------------- ----------
5 Share options
The following equity instruments have been issued by the Company
and have not been exercised at 31 December 2011:
Grant Expiry Number Issued Lapsed/ Number of Exercise
Date Date of Options in Year Cancelled Options Price
Outstanding per
Option
28/11/06 28/11/11 15,000,000 - (15,000,000) - 2.5p
28/11/06 28/11/11 15,000,000 - (15,000,000) - 5.0p
15/07/07 28/11/11 2,500,000 - (2,500,000) - 2.5p
15/07/07 28/11/11 2,500,000 - (2,500,000) - 5.0p
24/07/08 23/07/13 2,000,000 - (2,000,000) - 5.0p
24/07/08 23/07/13 2,000,000 - (2,000,000) - 15.0p
24/07/08 23/07/13 2,000,000 - (2,000,000) - 35.0p
12/07/10 23/07/13 8,000,000 - (8,000,000) - 2.5p
12/07/10 23/07/13 10,000,000 - (10,000,000) - 5.0p
12/07/10 23/07/13 10,000,000 - (10,000,000) - 10.0p
30/11/11 30/11/16 24,000,000 24,000,000 - 24,000,000 2.5p
30/11/11 30/11/16 26,000,000 26,000,000 - 26,000,000 5.0p
30/11/11 30/11/16 10,000,000 10,000,000 - 10,000,000 10.0p
69,000,000 - (69,000,000) 60,000,000
----------- ----------- ------------- ------------ ---------
The outstanding options at 30 June 2011 were as follows:
Grant Expiry Number Issued Lapsed/ Number of Exercise
Date Date of Options in Year Cancelled Options Price
Outstanding per
Option
28/11/06 28/11/11 15,000,000 - - 15,000,000 2.5p
28/11/06 28/11/11 15,000,000 - - 15,000,000 5.0p
15/07/07 28/11/11 2,500,000 - - 2,500,000 2.5p
15/07/07 28/11/11 2,500,000 - - 2,500,000 5.0p
24/07/08 23/07/13 2,000,000 - - 2,000,000 5.0p
24/07/08 23/07/13 2,000,000 - - 2,000,000 15.0p
24/07/08 23/07/13 2,000,000 - - 2,000,000 35.0p
24/07/08 23/07/13 8,000,000 - (8,000,000) - 2.5p
24/07/08 23/07/13 10,000,000 - (10,000,000) - 5.0p
24/07/08 23/07/13 10,000,000 - (10,000,000) - 10.0p
12/07/10 23/07/13 - 8,000,000 - 8,000,000 2.5p
12/07/10 23/07/13 - 10,000,000 - 10,000,000 5.0p
12/07/10 23/07/13 - 10,000,000 - 10,000,000 10.0p
69,000,000 28,000,000 (28,000,000) 69,000,000
----------- ----------- ------------- ------------ ---------
The assessed fair value at the grant date has been determined
using the Black-Scholes Model that takes into account the exercise
price, the term of the option, the share price at grant date, the
expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the
option. Share based payments are recognised over the vesting period
of the options. During the period, the Company granted options to
Directors and management as tabled below.
The inputs into the Black Scholes model are as follows:
Grant Share Exercise Volatility Option Dividend Risk-free Fair value
date price price life yield investment per option
at date rate
of grant
30/11/2011 2.27p 2.50p 132% 5 years 0% 1% 1.95p
30/11/2011 2.27p 5.00p 132% 5 years 0% 1% 1.82p
30/11/2011 2.27p 10.00p 132% 5 years 0% 1% 1.67p
Expected volatility was determined by calculating the historical
volatility of the Group's share price for the past three years.
The Group recognised US$1,761,000 (30 June 2011: US$229,000; 31
December 2010: US$229,000) related to equity-settled share based
payment transactions during the period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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