Highlights
• "One plant - multiple sources” production strategy
• Initial, preliminary, resource estimate
• Easily accessed shallow deposits (4m)
• In unconsolidated hosting sediments
• Low cost mining
• Simple processing
• High grade starter zone for early payback
• Located near current infrastructure (railway, town, grid power)

Location

The Bahi project is located in the east African nation of Tanzania and comprises 4 tenements covering an area of 4,700km2.  The project area is linked by road and rail to the national political capital of Dodoma located 70km to the east.

Uranex’s Bahi project exploration activities have been rewarded with the discovery of a uranium deposit near Manyoni (C1 prospect) and the discovery of other deposits of mineralisation within close proximity associated playa lake systems, together with the main Lake Bahi salt lake.

Uranex’s Bahi Project area incorporates an extensive, closed drainage system that has developed over weathered uranium rich granites.  This drainage system captures all soluble uranium leached from the underlying rocks and provides transport to suitable trap sites along the drainages and ultimately into the large 40x30km Bahi salt lake.

The Bahi playa lake system in Central Tanzania is emerging as a significant and distinct uranium province with some characteristics comparable to the Yilgarn playa lake/ calcrete uranium province in Western Australia (e.g. Yeelirrie, Thatcher Soak). In particular, the Bahi system demonstrates the potential for proximate Playa Lake deposits to support the Company’s ‘One Plant – Multiple Sources’ production strategy (see Figure x).

Resources

Independent consultants Hellman and Schofield Pty Ltd have estimated an inferred resource for the Bahi project of 14 million tonnes, averaging 218ppm U308 for a contained U308 content of approximately 6.7 million pounds (or approximately 3,000 tonnes contained U308), at a cut off grade of 150ppm U308 (table 1). Contained U308 more than doubles to approximately 15.3 million pounds at the 100ppm U308 cut off grade.

Bahi June 2008 Inferred Resource Estimates

(rounding errors may occur)

Uranium mineralisation at Bahi occurs as near surface secondary enrichment within unconsolidated sediments associated with several playa lakes. The mineralisation is characterised by an upper schrockingerite zone approximately one metre thick overlying a lower carnotite zone.

The resources were estimated by Ordinary Kriging of 0.25m down hole composited XRF assay results for samples from pit channel samples, auger holes, aircore holes and a small number of RAB holes. The estimates were constrained within mineralised envelopes (see Figure y) and use a density of 1.30 t/bcm, derived from measurements of samples from the Manyoni C1 deposit.



Figure y   Bahi sampling relative to model limits and mineralised domains

The Manyoni C1 estimate covers a strike length of 3.9km, with widths ranging from 0.3 to 3.3km and extends from surface to a maximum depth of 13 metres. Estimates for Playa Lake A cover an area of 3.2 by 4.4km and extend to 14m below surface. For Playa Lake E the estimate is defined over a 5.6km strike with a width between 0.5 and 2.8km to a maximum depth of 16 metres.

The estimates are only initial estimates in a vigorous ongoing exploration and resource definition program of the extensive Playa Lake system within the large Uranex tenement holding in the Bahi region of central Tanzania.

Exploration and Development Strategy

The Bahi project is the focus of the company’s exploration activity in Tanzania. To fast track the development of the project to production, Uranex is pursuing a “one plant - multiple sources” production strategy that will see a single plant constructed to process the combined resources of individual deposits located within close proximity to each other.

A scoping study is currently underway at the Bahi project and planned exploration activities will continue to convert uranium mineralisation to resources. Uranex is confident that significant scope exists for the location and definition of further resources within neighbouring Playa Lakes and including the vast ‘Bahi Lake’ Playa Lake (see Figure x). These prospects have significant scope for advancement from largely reconnaissance exploration to defined resource status.