Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Metallurgical test work underway at URU Metals’ Zebediela nickel project

The test work is assessing the potential to process nickel mineralisation using the more cost effective acid leaching process
nickel chemical symbol
A revised drill programme is planned for when the results come back

Base metals and uranium explorer URU Metals Ltd (LON:URU) has confirmed that metallurgical test work is underway at its Zebediela nickel project in Limpopo Province, South Africa.

The test work is assessing the potential to process nickel mineralisation using acid leaching.

The processing and upgrading of the nickel had previously been envisaged to be done by froth flotation, a more capital intensive process which was expected to result in recoveries of around 54%.

Should acid leaching prove to be a success, not only could it save URU money and improve the economics of the project, but the explorer reckons nickel recovery could also increase.

“This is an exciting time for the company and we look forward to updating the market on our other projects and corporate developments in the near future,” said chief executive John Zorbas.

Given the “significant changes” to the project’s economics, URU said it made sense to defer the planned drilling until after the metallurgical analysis was completed.

A revised drill programme is then planned for when the results come back.

URU has also started metallurgical test work on magnetite mineralisation that is associated with the nickel at Zebediela.

“The company continues to believe that the magnate mineralisation could provide the potential to generate cash flow prior to the commencement of nickel extraction,” read this afternoon’s update.

The Zebediela project has a combined inferred and indicated mineral resource estimate of 1.5bn tonnes of nickel.

A preliminary economic assessment was completed in 2012 based on a NI 43-101 compliant indicated resource of 485.4mln tonnes at an average grade of 0.245% nickel and an additional inferred resource of 1.12bn tonnes at a grade of 0.248% nickel, using a cutoff grade of 0.1% nickel.

About 58% of the total nickel at the project is contained in the sulphide minerals present within the sulphide zone and therefore potentially recoverable, URU has said.

Shares were down13% on Wednesday afternoon at 2.7p.

That could well be investors taking profits given that the stock has more than quadrupled since the beginning of the year.

View full URU profile View Profile

URU Metals Ltd Timeline

Newswire
December 23 2016

Related Articles

Uranium on periodic table
May 10 2018
Cauldron owns the Yanrey Uranium Project, 85 kilometres south of Onslow in Western Australia.
Picture of stacking gate
May 08 2018
The Etango mine is expected to be a top 10 producer once developed.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use