Announcements 2007
Update on Waterval Concession, South Africa
21 May 2007
The Board of Directors of Brinkley Mining is pleased to announce that the Company commenced drilling on the Waterval Concession last week.
The initial diamond drilling programme will cover the historically drilled area. The drilling programme's objective is to confirm and define the historical resource and test the significance of radiometric anomalies identified during the recent airborne reconnaissance programme. Based on these results, the Directors expect that Brinkley Mining will embark on a more extensive drilling programme. The first hole has encountered a radiometric anomaly at 14 metres below surface.
In addition, Brinkley Mining has identified and cleaned out over 200 historic holes that will be tested by a down-hole scintillometer survey which will commence this week. On successful completion of this survey and the ongoing drill programme described above, the Directors envisage that a resource statement should be available in the third quarter of this year.
Brinkley Mining Plc
Gerard Holden, Chairman
Donald Strang, Finance Director
Bruce Stewart, Investor Relations
Tel +44 (0) 207 016 5108 Fax +44 (0) 207 016 5101
Beaumont Cornish Limited
Michael Cornish, Director
Tel +44 (0) 20 7628 3396 Fax +44 (0) 207628 3393
Parkgreen Communications
Justine Howarth, Clare Irvine
Tel +44 (0) 20 7851 7480 Fax +44 (0) 20 7494 9023
Notes for Editors
Background on Waterval
The Waterval uranium deposit, like most of the deposits in the Karoo, is a typical sedimentary sandstone-type deposit. This deposit was explored in the 1970's by both Union Carbide Corporation and The Essex Mineral Company and in the early 1980's by the Geological Survey. During these various phases of exploration two uraniferous outcrops were identified which form prominent cliffs varying in thickness between 4 metres and 24 metres. Approximately 150 previous holes on a 100 metre by 100 metre grid were drilled. The drilling encountered uranium mineralization as shallow as 8 metres to 13 metres in depth and at an average thickness of 1.04 metres. The average grade was calculated to be between 1,690 and 1,820 parts per million ("ppm") uranium oxide ("U3O8") and 910 ppm molybdenum ("Mo").
SRK Consulting stated that based on the assumption that between 5% and 10% of the area underlain by uraniferous sandstone may be mineralised and typical mineralization grades for Waterval, the magnitude of the total in-situ mineralization that the Company is targeting in its exploration is likely to fall within a range of 11 million and 21 million pounds of U3O8 and between 5 million and 11 million pounds of Mo. It should be noted that these numbers do not constitute or claim to be a mineral resource under any of the modern internationally accepted standards for reporting mineral resources.
| Prospect | Area underlain by uraniferous sandstone | Estimated frequency of mineralization (as portion of area underlain by uraniferous sandstone) |
|---|---|---|
| Waterval 28.5 km2 | 5% | 10% |
| U3O8 target (lb U3O8): | 10,815,750 | 21,631,500 |
| Mo target (lb Mo): | 5,768,400 | 11,536,800 |
Prospect Area underlain by Estimated frequency of mineralization (as uraniferous sandstone portion of area underlain by uraniferous sandstone) Waterval 28.5 km2 5% 10% U3O8 target (lb U3O8): 10,815,750 21,631,500 Mo target (lb Mo): 5,768,400 11,536,800
Qualified Person
Kiran Morzaria has reviewed the information contained in this announcement. Kiran Morzaria holds a B. Eng Honours degree in Industrial Geology and a MBA in Finance. Kiran is a Non-executive director of Brinkley Mining. He has compiled, read and approved the technical disclosure in this regulatory announcement.
