Announcements 2007
Projects Update
05 February 2007
The Board of Brinkley Mining expects to announce its audited results for the period ended 31 December 2006 in the week commencing 26 March 2007. The following announcement provides an update on the status of all the Company's uranium interests.
South Africa
Since its admission to AIM, Brinkley Mining has continued to pursue the prospecting rights applied for by the Company's associate, Western Uranium (Pty) Limited ("Western Uranium"), in the Karoo district of the Northern and Western Cape.
Sole Ownership Rights
The Company through its South African subsidiaries owns the Waterval Farm and options to purchase the remaining farms.
These preclude any other party from gaining access to the land without first consulting with the Company. This consultative process is one of the requirements to complete the Environmental Management Programme which is a requirement for any Prospecting Permit to become effective. The Company is not aware that any other parties have had access to this ground to conduct an Environmental Management Programme.
Waterval / Reitkuil Application
As previously announced by the Company on 13 October 2006, the South African Department of Minerals and Energy (the "DME") informed Western Uranium of its grant of Prospecting Rights over three portions of the six portions applied for under the above application. Western Uranium complied with the DME's request that any outstanding matters regarding the application were finalized and any further relevant documents submitted to the DME by no later than 13 November 2006. On 30 November 2006 the DME informed Western Uranium that although 51% of the issued share capital in Western Uranium was to be owned by Historically Disadvantaged South Africans, that Brinkley Mining should not be able to exercise board control by virtue of its right to appoint the chairman of Western Uranium and have the casting vote on any dead-lock issue. Accordingly, Brinkley Mining has now agreed with the DME the basis of the shareholders agreement for Western Uranium pursuant to which the board control of Western Uranium will consist of four representatives from Brinkley Mining, two from Summer Days Trading 3 (Proprietary) Limited ("Summer Days") and two from Blue Nightingale 709 (Proprietary) Limited ("Blue Nightingale") (together the "HDSAs") with no directors having a casting vote. Having resolved this issue Western Uranium is now seeking to have the Prospecting Rights signed and notarised. Accordingly, the table below summarises the current status of Western Uranium's Waterval / Reitkuil application:
Prospects |
Hectares |
Status |
|---|---|---|
Waterval Prospect (3,600 ha total) |
||
| Remainder of Krugel's Claim 459 | 1,085 | Application Accepted by the DME |
| Portion 9 of Brandewyns Ghat 214 | 838 | Prospecting Right Granted, awaiting execution |
| Remainder of Portion 3 of Brandewyns Ghat 214 | 1,677 | Prospecting Right Granted, awaiting execution |
Rietkuil Prospect (7,342 ha total) |
||
| Portion 9 of Rietkuil 307 | 2,155 | Application Accepted by the DME |
| Remainder of Rietkuil 307 | 4,969 | Application Accepted by the DME |
| Remainder of Portion 1 of Langleegte 304 | 218 | Prospecting Right Granted, awaiting execution |
There are three outstanding portions which have yet to be granted under this application. The DME has not yet informed Western Uranium nor the Company of any further updates including whether there are any competing applications. The Company is satisfied that Western Uranium has fully complied with the application requirements. Western Uranium has written to the DME in respect of the three outstanding portions requesting clarification on their current status. A further announcement will be made in due course as soon as the Company is provided with an update by the DME.
In the last week the Company received a request from Uramin Inc. to allow it access to the Rietkuil Prospect. The Company is considering its position in this regard.
Other South African Uranium Prospects Applications
In relation to the Flagfontein and Damsfontein / Blomfontein applications, the DME indicated to Western Uranium that it did not intend to grant the rights citing a lack of financial capacity of Western Uranium and an inappropriate work programme and budget. Western Uranium has submitted a formal appeal in regards to the Flagfontein application, and is currently preparing the formal appeal for the Damsfontein / Blomfontein application on the basis, amongst others, that the Minister and the DME has only considered Western Uranium's financial resources and had not taken into account the significant cash balances held by Brinkley Mining, which Brinkley Mining intends to make available to Western Uranium to complete the exploration program. As at the date of this announcement, the Company's cash balances amount to approximately £16.5 million. The Company is satisfied that Western Uranium has been able to demonstrate sufficient financial resources to the DME and an appropriate work programme and budget. Western Uranium has not been informed by the DME of their decision on these applications.
As described above, Western Uranium has written to the DME requesting clarification from the DME as to the status of these applications. A further announcement will be made in due course as and when the Company is provided with a decision by the DME.
Democratic Republic Of Congo ("DRC")
Uranium Resource Development
In October 2006 Brinkley Mining through its 70% owned subsidiary, Brinkley Africa Limited ("Brinkley Africa"), announced its partnership with Le Commissariat General a L'Energie Atomique ("CGEA") to develop uranium assets in the Democratic Republic of Congo ("DRC"). Since this announcement the Company has made good progress with the development of the DRC projects and has identified five areas which are prospective for uranium. Two of these prospects have historical uranium resources. The prospects are situated in the Katanga province in the south east of the DRC
The Commisariat General a l'Energie Atomique of the Democratic Republic of Congo (the "CGEA") has confirmed to the Company that it has officially transmitted to the Minister of Mines its request in terms of the laws and regulations in the DRC, to issue Exploration Permits over the five areas.
Following the inauguration of President Joseph Kabila in December 2006, the present cabinet was placed in a caretaker status only and as a result the implementation of the aforementioned notification to the Minister of Mines remains pending a new government being announced and taking office. The new cabinet is expected to be announced shortly. The Company has been advised by the CGEA that following the appointment of the new Minister of Mines the abovementioned exploration permits will be issued promptly.
Brinkley Africa has work programmes in place and a technical team ready to commence implementation of an extensive exploration programme as soon as the Exploration Permits are granted.
Radioactive Material Certification - Border Control
Brinkley Africa has entered into an addendum to the original Memorandum of Understanding with the CGEA which provides for the parties to incorporate a new company in the DRC. This new company is to be called Societe d'Inspection des Matieres Nucleaires et des Substances Radioactive ("SOCIMAR").
Brinkley Africa will have board control of SOCIMAR and an approximate 40% economic interest. SOCIMAR is mandated by CGEA to conduct radiation testing and certification of export materials with a view to implementing proper controls and to restrict the illicit export of radioactive material. SOCIMAR will receive a fee per unit certified.
A project implementation plan has been agreed with CGEA and personnel are currently being recruited. It is SOCIMAR's objective to have the required controls operative at a number of border crossings in the next six months.
Personnel
Brinkley Africa has appointed a country manager for its activities in the DRC and is currently establishing its technical and administrative infrastructure.
Southern Sudan
Since its admission to AIM the Company has been offered several opportunities to develop other uranium prospects. The Company has reviewed these opportunities together with its technical advisors and geological consultants Caracle Creek International Consulting Inc. ("CCIC"). The Company has identified areas in Southern Sudan which are prospective for uranium and has lodged Exploration Permit Applications over these areas. Exploration work carried out to date indicates elevated background radiation readings and geological occurrences consistent with a favourable environment for uranium deposits.
For further information, please contact:
Brinkley Mining plc
Gerard Holden, Chairman
Bruce Stewart, Investor Relations Manager
Tel +44 (0) 207 016 5108
Fax +44 (0) 207 016 5101
Beaumont Cornish Limited
Roland Cornish
Tel +44 (0) 20 7628 3396
Fax +44 (0) 207628 3393
Arbuthnot Securities Limited
Graham Swindells
Tel +44 20 7012 2000
Parkgreen Communications
Justine Howarth,
Ana Ribeiro
Tel +44 (0) 20 7493 3713
Fax +44 (0) 20 7491 3936

