Niger
In Niger, West Africa, NGM Resources wholly-owned subsidiary, Indo Energy Limited, has been granted three uranium exploration tenements in the country's uranium-rich Tim Mersoï Basin. The world-class uranium deposits present in this sedimentary basin have been in production for the past 30 years and have established Niger as the world's fourth largest uranium producer.
Niger's uranium production, however, is expected to double by 2012 following AREVA's mining of the Imarouren deposit, which is claimed to contain in excess of 150,000 tonnes (330mlbs) of uranium and is expected to produce more than 5,000 tonnes per annum (+11mlbs) of uranium at a mined grade of 0.12% (1,200ppm). This will place Niger as the world's second or third largest producer of uranium. NGM's landholdings lie approximately less than 100km south from this deposit and have demonstrated similar uranium-bearing structures.
From May to August 2009, NGM conducted its first exploration programs. The programs included field mapping of the Idekel, Tschirezrine, Wagadi and Takardeit prospect areas, as well as a 1,500m drilling program to test targets identified from previous data produced by Cogema work in the 1960's.
The Company had outstanding success with these initial programs, locating mineralisation on all three tenements. 24 of the 27 holes drilled across the tenement area encountered significant uranium mineralisation (>100ppm eU3O8), with higher-grade zones also encountered in four of the six holes drilled at NGM's Takardeit prospect (>1,000ppm eU3O8).
October 2009 saw the beginning of the second phase of drilling at Takardeit to drill test the exploration target identified by drill holes IND011 to IND014 inclusive in July 2009. Three distinct Takardeit zones, Takardeit, Takardeit North and Takardeit East, were drilled in this program to test their strength, width and depth. Takardeit as an area has significant outcropping mineralisation over an area of approximately 50 square kilometres with a best assay of 17% U3O8. Aerial surveys and field programs were also undertaken to increase the Company's geological knowledge base and to introduce modern tools for detection of new prospects.
The program included approximately 3,800m of drilling with the majority undertaken at Takardeit. The Company has since announced 23Mt at 210ppm for an inferred estimate of 11Mlbs utilising a 120ppm cut off. Of particular significance is the shallow depth of the intersectons in all holes drilled in the Takardeit prospect. Mineralisation is less than 30m from surface. Figure 1 is a cross section of the mineralised zone with the carboniferous target also shown.
Figure 1: Takardeit drilling
The Company is now in receipt of interpreted aerial data and has been working on developing new targets based on exisiting geological models (other deposits) for the region. The Takardeit mineralisation appears to be supergene in nature and it is expected the host or primary source may be the carboniferous sandstone unit located approximately 130-150 metres from surface. The carboniferous material is the host mineralisation for most of the nearby major deposits.
Figure 2: Recent radiometrics over magnetics and alos landsat imagery
The Company expects to recommence drilling in March 2010 and will target the carboniferous and other structures based upon the recently interpreted data.
Cash reserves currently stand at $3m which is sufficient for another two campaigns.