Trading Symbol (TSXV: UUU and AIM: UUU)
VANCOUVER, Jan. 9 /CNW/ - UrAsia Energy Ltd. (the "Company" or "UrAsia") is pleased to announce that the mining licence at the Kharassan uranium project, located in south central Kazakhstan has been increased in area from 70.8km(2) to 82.2km(2).
The Company has a 30% interest in the Kyzylkum Joint Venture, which has a 100% interest in the Kharassan uranium project "Kharassan". Kharassan is currently under construction with initial uranium production scheduled for the end of 2007.
The increase in size of the licence area by 15% has increased the Russian P1 resource on the property, which has increased the potential of the property to host additional mineral resources with additional drilling. Phillip Shirvington, President and Chief Executive Officer, said "the conversion of the additional P1 resource to meet Canadian Institute of Mining Metallurgy and Petroleum 'CIM' Standards on Mineral Resource and Reserve definitions through extensive drilling is a primary objective of the Kyzylkum Joint Venture".
An application to the Ministry of Energy and Natural Resources in late 2006, requesting changes to the proposed work programme at Kharassan was reviewed and accepted by an Expert Commission of the Geology and Sub-Soil Use Committee of the Ministry of Energy and Natural Resources. Phillip Shirvington commented "the Expert Commission was extremely co-operative and efficient in reviewing and processing the Joint Venture's application. Our request was granted and the changes were made effective as of December 25, 2006".
The known mineralization on the Kharassan Property trends northwards. The additional licence area, located to the north, will enable the Joint Venture to explore the prospective area for further mineralized horizons. For a detailed description of the regional geology and property geology, please refer to the Technical Report on the North Kharassan Project, March 25, 2006.
A map of the new licence area is available at:
http://www.urasiaenergy.com/i/maps/KharassanNewLicenceAreaMap.jpg.
The co-ordinates of the licence area are provided in Table 1.
Table 1. Kharassan, licence area co-ordinates
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Corner point co-ordinates
Corner points ---------------------------------------------------
Northern latitude Eastern longitude
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1 43 degrees 52'13" 66 degrees 45'37"
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2 43 degrees 54'16" 66 degrees 50'01"
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3 43 degrees 56'29" 66 degrees 50'13"
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4 43 degrees 56'57" 66 degrees 51'53"
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5 43 degrees 54'20" 66 degrees 52'41"
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6 43 degrees 51'20" 66 degrees 54'41"
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7 43 degrees 50'11" 66 degrees 51'07"
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8 43 degrees 50'05" 66 degrees 45'41"
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The Scott Wilson Mining Group "Scott Wilson RPA" reviewed the new data on the Kharassan Property. Scott Wilson RPA was provided with a plan map showing the new licence boundaries and documentation, from the Ministry of Energy and Natural Resources of the Republic of Kazakhstan, which indicates that the Kyzylkum Joint Venture was granted a change in the licence boundaries resulting in an increase in the licence area.
UrAsia is a Canadian-based uranium producer that offers investors exposure to low-cost uranium production and growth. The Company creates shareholder value by focusing on the development and operation of low-cost in-situ leach uranium projects in Central Asia.
UrAsia is listed on the TSX Venture Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange, trading under the symbol UUU on both exchanges.
On behalf of UrAsia Energy Ltd.
"Phillip Shirvington"
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking statements relating to the future performance of UrAsia Energy Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions.