Resource Star (ASX: RSL) have boosted by 30% the uranium resource to 6 million pounds at the Livingstonia Uranium Project joint venture in Malawi.
The Resource is; 8.3 million tonnes at 325 ppm eU3O8 for 6.0 million pounds of U3O8 (or 2,700 tonnes).
What is so important about the upgrade is just 1500 metres of drilling added around 1.4 million pounds of uranium.
More significantly, the company has generated a large increase in the high grade core of the deposit.
Multiple horizons of sandstone-hosted uranium have been defined, with possible fault controlled trends where the stacked zones merge to provide near-continuous
mineralisation.
The best intersection to date from LBPE 103 is; 33.95 metres at 338 ppm eU3O8.
Resource Star will now undertake an integrated geological study of historical data and a desktop conceptual development study to finalise plans for the next round of drilling and testwork.
Supporting this additional work is that the independent review concluded that there is excellent potential to identify additional resources.
Simon Heggen, managing director of Resource Star, said, "The growth in the Livingstonia Resource, together with the recently announced, conditional acquisition of a share of the exciting Yuty Uranium Project in Paraguay, and the commencement of work on the Spinifex Project in Western Australia, emphasises the company’s commitment to growing value for shareholders by identifying, acquiring and exploring projects that can be advanced quickly.”
Resource Star will now conduct an integrated review of all data collected to refine geological modelling and generate further drill targets, with a Conceptual Study assessing development options to better focus data collection requirements.
Follow-up drilling will also be completed during 2011.
Globe Metals & Mining (ASX: GBE) is Resource Star's joint venture partner at Livingstonia.
Resource Star currently holds a 20% interest in the project, with Globe 80%, with Resource Star able to earn up to a total 51% interest by spending US$3.25 million over a four year period, in addition to the company's spend in relation to the initial 20% interest.
In the event that Resource Star is able to produce a 10,000 tonne U3O8 inferred JORC Resource within a further two year period, the company can earn a total 70% interest in the project, and a maximum 80% interest upon completion of a Feasibility Study.