miningnews article on sim A-Z Uranium Sector Snapshot (Part Nine...

miningnews article on sim

A-Z Uranium Sector Snapshot (Part Nine – S)

Michael Vaughan
Thursday, March 30, 2006


AS URANIUM passes $US40 per pound, MiningNews.net asks 15 questions of the companies comprising Australia's growing uranium sector. The survey will be published daily for the rest of March.




SCIMITAR RESOURCES
Share price (at March 17): 33c
Market cap (at March 17): $6.62 million

1. Where is your mainstay project located?
Yanrey Uranium Project 80km south east of Onslow, WA

2. When was it discovered?
1978 by CRAE.

3. What is the company's stake in the project?
100%

4. What work programs have been completed at the project? How much drilling has been carried out?
The project has recently been granted (Dec 05), previous drilling totalled 15,000m and the company has a 3,000m drilling program planned for early April 2006. Previous exploration utilised ground gravity and drilling to define the channel sequences. Scimitar intends to utilise Hoist EM to locate and better define additional channels.

5. What style/type of uranium mineralisation is at the project?
Sandstone hosted roll front.

6. What are the dimensions of the mineralisation? What are the levels/tenor/grade of mineralisation?
Drilling has intersected uranium mineralisation over 6km of channel sequences (up to 800m width). There is widespread mineralisation above 0.06% (600ppm) with higher grade zones up to 3.25m at 0.28% and 2.7m at 0.46% uranium oxide equivalent from previous drilling.

7. Is the project essentially a 'greenfields' proposition, or does it have a JORC-compliant resource? If it is not 'greenfields' and if it doesn't have a JORC resource, how much work needs to be done in order to establish one?
The previous results indicate a likely cost and timeframe of $1-$1.5 million and 12-18 months to a JORC resource stage.

8. What is the potential size of the deposit?
The target for the infill and exploration drilling is 3-6,000t of uranium oxide from the Bennet Channel, this is estimated taking into consideration previous results and that the next channel some 15km to the north hosts the Manyingee deposit of 12,000t at 0.08% uranium oxide help by Paladin Resources Ltd.

9. How much cash has the company budgeted to spend on the ground at the project during 2006?
The Company is still reviewing its exploration budget on all projects, it is anticipated approx $400,000 to $600,000 will be spent at Yanrey.

10. What is the company's current cash position?
$1.5 million

11. Which contractors/consultants has the company been/intend using?
Drilling - Wallis Drilling
Assaying - Amdel Laboratories
Tenement management - McMahon Mineral Title Services.
Geophysics - Resource Potentials

12. How is the project located in terms of infrastructure?
N/A

13. How far away is a potential development? What is the potential size and timeline?
N/A

14. What are the potential capital/operating costs of the development? When will you likely know?
N/A

15. What are the main hurdles to reaching a development decision?
N/A