As an active investor and project developer, the primary objective is to develop a strong portfolio of high growth demand metals that offer the potential to deliver substantial shareholder value.

Since its establishment and listing on the London Stock Exchange’s Alternative Investment Market (AIM) in 2007, the company has developed a portfolio of large-scale exploration assets, investments and joint venture projects.

Key strengths include an experienced management team of mine development professionals, with a proven track record of taking decisive corporate actions to secure value-adding results. URU Metals continues to pursue new opportunities, driven by the quality of each proposition, whether stand-alone acquisitions, earn-in joint ventures or direct interests in promising natural resources projects.

Website - http://www.urumetals.com/

News - http://www.urumetals.com/media/news

News out today on the Narke Project in Sweden


RNS Number : 4850P
URU Metals Limited
02 October 2013




2nd October, 2013



URU Metals Limited

("URU" or "the Company")



First Analytical Results from Närke Uranium-Oil Project and Appoints SGS Lakefield



The Director's of URU Metals Limited, (AIM:URU), the base metals and uranium explorer and development Company, are pleased to announce the first analytical results of Source Rock Analysis/Rock Eval Pyrolysis Tests, Fischer Assay tests, and metals geochemistry from the Närke Oil-Uranium Project, located in Central Sweden.



Highlights



· Exceptionally high total organic content in the samples in the form of kerogen, ranging from 16.6 - 21.1 wt% TOC

· Confirmed that the form of kerogen is Type II, favorable for oil extraction

· Between 66.2 and 106.9 mg of hydrocarbons per gram of rock was extracted from cracking of kerogen, at a relatively low Tmax average temperature of around 420°C.

· The samples from the K1 pit area returned the best S2 results, averaging 93.52 mg of hydrocarbons extracted per gram of rock.



Commenting upon the results, URU CEO Roger Lemaitre said, "URU is pleased with the first phase analytical results from our first samples collected at the Närke Project. The hydrocarbon testing indicates that we may be able to extract much more oil than we previously thought possible, and suggests that the potential exists to produce gas hydrocarbons as well.



"Although we are still at an early stage of our exploration, initial results indicate that the Närke Project is likely to become an oil project with uranium as a by-product. We are looking forward to the results of our Preliminary Metallurgical Test program which will provide us with more clarity on whether the fundamentals of the project and whether it is economically viable."



Nine rock samples were collected from three abandoned small open pit quarries, two of which were located on the Kvarntorp #5 exploration license, and one from the Latorp #1 license. One blank sample was inserted into the batch for quality control/quality assurance purposes. The Kvarntorp pits were excavated as part of the oil shale mining project conducted by the Swedish government from the 1940's to 1960's.

The Source Rock Analysis and RockEval pyrolysis tests showed that there is an exceptionally high total organic content in the samples in the form of kerogen, ranging from 16.6 - 21.1 wt% TOC and confirmed that the form of kerogen is Type II, considered favorable for oil generation. The Alum Shales at the Närke Project are very immature, meaning that most of the hydrocarbons that could have be generated from these rocks currently remains trapped within the rocks, as only a minor amount of potential hydrocarbon has been released over time through natural geological processes.



Most encouraging from the laboratory testing were the large amounts of hydrocarbons released during the second stage of the Rock-Eval pyrolysis test (S2 on the Rock-Eval table). S2 measures the amount of hydrocarbons (both oil and gas) produced through the cracking of kerogen at temperatures between 300-600°C. Between 66.2 and 106.9 mg of hydrocarbons per gram of rock were extracted from the cracking, at a relatively low Tmax average temperature of around 420°C. The samples from the K1 pit area returned the best S2 results, averaging 93.5 mg of hydrocarbons extracted per gram of rock.



The three samples from the K1 pit on the Kvarntorp #5 license averaged a moisture-corrected Fischer Assay Method oil yield of 4.2 wt%, 123 ppm uranium (equivalent to 145 ppm U3O8), 440 ppm vanadium, and 172 ppm molybdenum.



The three samples from the K2 pit on the Kvarntorp #5 license averaged a moisture-corrected Fischer Assay Method oil yield of 2.44 wt%, 52 ppm uranium (equivalent to 61 ppm U3O8), 406 ppm vanadium, and 178 ppm molybdenum.



The three samples from the L1 quarry located on the Latorp #1 license averaged a moisture-corrected Fischer Assay Method oil yield of 4.2 wt%, 55.7 ppm uranium (equivalent to 65.7 ppm U3O8), 464 ppm vanadium, and 171 ppm molybdenum.




Appointment of SGS Lakefield



URU's 100% subsidiary, Svenska Skifferoljeaktiebolaget, has signed a contract with SGS Laboratories to conduct early-stage metallurgical and oil recovery tests on approximately 200 kg of rock that will be collected from the Närke project in the next few weeks. Oil recovery testing will be conducted at SGS's Burnaby lab and the metallurgical work completed at SGS Mineral Services, Lakefield.



The purpose of this Preliminary Metallurgical Test ("PMT") program is to determine whether there are technical and economic methods to extract oil, uranium, vanadium and molybdenum from the Alum Shales present on the property. Further investment will be dependent on these results.


Background information on Närke Project


Sweden is one of the world's most favourable mining jurisdictions. Between 1941 through 1966, a Swedish government-owned company produced 62 tonnes of uranium (134,500 lbs) and established an oil-recovery plant on the Närke Project, which recovered approximately 159,100 m3 of petroleum (1 million barrels) and 418,400 m3 of fuel oil (2.6 million barrels) from approximately 50 million tonnes of mined rock.



The Alum shale is world renown as being one of the world's largest repositories of metals, particularly uranium. Perceived uranium resources within the Alum Shales are generally believed to be larger than most of the combined uranium resources from the producing global uranium districts. Although an economic recovery of uranium from the Alum Shale has not yet been developed at today's uranium prices, technological advances in oil and uranium recovery the last decade make this project potentially viable.

URU's focus will be on reducing risk by proving that a co-recovery extraction process can be developed using existing technologies before incurring significant investment into proving up uranium and oil mineral resources and reserves.

Historic drill holes testing the Alum Shale on the existing licenses were completed by previous explorers, indicating that good thickness of uranium and oil-bearing Alum Shale are present across all the mineral licenses being acquired by URU.



About the various analytical techniques



The Fischer assay is a standardized laboratory test for determining the oil yield from oil shale to be expected during conventional shale oil extraction. A 100 gram oil shale sample crushed to <2.38 mm is heated in a small aluminum retort to 500 °C (930 °F) at a rate of 12°C/min (22°F/min), and held at that temperature for 40 minutes. The distilled vapors of oil, gas, and water are passed through a condenser and cooled with ice water into a graduated centrifuge tube, and subsequently analyzed.



Source Rock Analysisinvolves multiple tests to measure the total organic carbon (TOC), percent carbonate and RockEval pyrolysis which provides a measurement of free hydrocarbons (S1), kerogen content (S2), carbon dioxide associated with organic matter (S3) and temperature of maximum S2 peak (Tmax). From these data a range of kerogen quality and oil yield indexes can be calculated.



Geochemical Analysis was completed using SGS Mineral Services, Lakefield's GE ICM40B - Multi-Acid (4-Acid) Digestion technique, under which samples are first weight upon receipt and crushed using SGS's CRU22 process, under which the entire sample is crushed until 75% of the material passes a 2 mm screen. Following crushing, a 250 g split is taken from the larger sample and pulverized until 85% of the material passes 75 microns. The resulting sample is digested using a combination of HCl (hydrochloric acid), HNO3 (nitric acid), HF (hydrofluoric acid) and HClO4 (perchloric acid). A combination of ICP-AES AND ICP-MS Package (49 Elements) was used to determine the concentrations of Mo (1-10,000ppm), U (0.05-10,000ppm), V (2-10,000ppm), Ni (2-10,000ppm).

ICP-AES is a technique under which the digested sample is ionized with inductively coupled plasma. Nitrogen or dry compressed air is used to 'cut' the plasma at a specific spot. One or two transfer lenses are then used to focus the emitted light on a diffraction grating where it is separated into its component wavelengths in the photodetectors in an optical spectrometer which measures the intensity specific wavelength(s) attributable to each particular atomic element involved on an array of semiconductor photodetectors. The intensities each wavelength can be used to determine the concentration of a particular element.


Additional information regarding the Närke Project can be found on the Company's website at www.urumetals.com.

Price is currently at all time lows & fallen from a high of 16p. W H Ireland should provide an updated coverage on Narke after this week's fantastic news and revised their target price way higher than 4.50p too imo. The company have said on more than 1 occassion this year that they hoped the share price would reflect and I'm sure the company continues doing more on the PR front.

But as the house broker has stated they haven't even included Zebediela which could be the rabbit out of the hat despite the excellent news on Narke this week.

URU is definitely one to hold for the next few weeks as hopefully re-rating occures & I expect more positive newsflow.

Cameco or any other major should bite the company's hand for a JV on Narke or even selling off the asset. The chairman has great links and was previously on the board of a major like Cameco.

I have been buying into many juniors since mid-August but only those that are good on fundamentals too. IMO URU is great on fundamentals with the sizeable assets. 3 brilliant projects and I don't think there are other such bombed out stocks where one can get in the bottom before all the bits come together.

This weeks news on Narke was a game changer and Oil now as the primary product and Uranium as by product.

IMO many in the world like Oil ahead of Uranium. But all that is just Narke and as I have stated the below could be even bigger.

News pending on the below 2.

- We value the risked potential of URUs share of Zebediela at US$111 million
or 32.5p/share. Bringing in a major partner and diluting URU would still
leave plenty of value in the project for the company.

- Excellent opportunity at Nueltin – URU earning an option from Cameco on a
gold-uranium mineralisation with, in our opinion, significant potential

All facts from House Broker research note. These notes are without this week's fantastic news on the Oil side of things and hence imo URU is worth a alot more than 4.50p now and even at 4.50p Zebediela wasn't factored in. IMO URU is worth at least 10p now and a 13m mkt cap. See how much Zebediala could be worth on its own.

- Excellent opportunity at Nueltin – URU earning an option from Cameco on a
gold-uranium mineralisation with, in our opinion, significant potential

- We see Niger as a non core area for URU. Security situation not ideal and
URU may well choose to JV its properties – after developing some very good drill targets. We believe URU may well have a choice of partners.

- URU has cash to advance its Nueltin project and complete early
reconnaissance over the Narke licence. URU has the potential to advance understanding of these projects and drive the share price.

- Catalysts for a short-term increase in share price: Successful field season
at Nueltin and a result in the SAN arbitration.

- We emphasize the upside potential in the SAN project – the Zebediela
project is large scale and potentially rewarding.

- We value the risked potential of URUs share of Zebediela at US$111 million
or 32.5p/share. Bringing in a major partner and diluting URU would still
leave plenty of value in the project for the company.

- Narke – early stage and a technology dependent. Too early to imagine any
upside from this project yet (after yesterday's news) imo further coverage should follow.

- URU has cash in hand to advance its projects over the course of 2013 and into 2014 and can already demonstrate significant progress to its shareholders as it spreads commodity and geopolitical risk into new projects.

- We initiate with a Speculative Buy recommendation and a 4.5p price target.

"To date, URU’s expenditure in the SAN JV is approximately US$4.2 million".

http://www.urumetals.com/portfolio/projects/nickel

So if option 2 happens and URU does not retain its stake but gets its investment back then quite a handy circa £2.50 million pounds and just less than the current mkt cap. On top of the current £1m cash & no value at all on the assets. On Zebediala alone if option 1 transpires then URU retains its 33% share of Zebediela at US$111 million
or 32.5p/share. Bringing in a major partner and diluting URU would still leave plenty of value in the project for the company.

0 value on Narke and Nueltin at the moment imo and pretty much the same with Zebediela.

Hearings were scheduled for the second half of 2013 on Zebediela.

The recent research on Zebediala alone just shows this could be a huge multibagger and even more than 2 fold imo. The Narke & Nueltin assets are hugely significant too especially with this week's news on Narke.

DYOR as always.