The Company's primary 1,200 sq km project, Mtonya, is located 100 km east of the district capital of Songea. Its geology consists of Usagaran orogenic basement rocks in the west and sediments of the Luwegu Sub-basin of the Selous Basin in the east. Roll-front style uraniferous mineralisation hosted by the Karoo sandstone units is thought to be analogous to that of Mantra's Nyota deposit, which contains an inferred resource of 55.8 million pounds U3O8. The Mtonya project is currently the main target of the Company's exploration efforts.


Uranium Resources commenced its 2010 drilling programme in June 2010. When completed, the two-phase programme will comprise approximately 4,170 metres of diamond core drilling.

The Company announced that it had completed phase 1 on 11 October 2010. It comprised three diamond core drill holes for a total of 1,512m. The primary objective of phase 1 was to test the Company's geological model and identify favourable geological settings. The initial results of phase 1 have confirmed Uranium Resources geological interpretation on a district and prospect scale. Of particular significance have been observations of the favourable lithologies and the intersection of strata that have been subjected to extensive redox processes. The Company believes these strata have potential to host large-scale uranium mineralisation.

As a result of the success of phase 1, the Company commenced phase 2 of the drilling programme which will comprise a further 2,650m of diamond core drilling. Phase 2 will further define the geology and is expected to generate drill targets for subsequent exploration programmes. The Company engaged an additional rig to undertake the work and strengthened the field team by the addition of two experienced uranium geologists. The Company completed phase 2 drilling on 12 November 2010.

Assay results from the programme are due H1 2011. The processing of this data will advance the Company's understanding of the mineralisation controls and help generate valid drill targets for future drilling programmes.