Name and Location
Zebediela nickel project, Limpopo, South Africa.

Client
URU Metals.

Project Description
The Zebediela project is a large disseminated sulphide resource with mining engineering aspects similar to porphyry copper deposits in terms of size and grade.

The National Instrument 43-101-compliant preliminary economic assessment (PEA) completed in June 2012 outlines indicated resources of 485.4-million tonnes, averaging 0.245% nickel, and additional inferred resources of 1.115-billion tonnes of 0.248% nickel. The project also contains significant iron minerals in the form of magnetite that is also being investigated as a potential by-product. The PEA envisages the mining and milling of only 500-million tonnes of mineralised material in an openpit mine about 1 700 m long by 880 m wide and 250 m deep. The proposed mining rate is 20-million tonnes a year using a contractor mining fleet.

The strip ratio is 0.36:1.

Value
Start-up capital expenditure, including contingencies and working capital, is estimated at $650-million.

Duration
A timeframe for the development of the project is yet to be confirmed.

Latest Developments
Following URU’s gradual increase of its stake in the Zebediela project from 33% to 100% and the conclusion of the due diligence, the base metals and uranium explorer and development company can now progress to developing the nickel project.

The buy-out follows the conclusion of a dispute between URU’s joint venture (JV) partners, Southern Africa Nickel (SAN) and black economic-empowerment partner Umnex Mineral Holdings. The two parties had served a formal notice of arbitration against each other, with the partners citing a lack of performance in achieving deliverables under the SAN-Umnex JV agreement.

In November 2013, URU acquired a 100% stake in SAN, bringing its stake in Zebediela to 74% and giving it the right to  SAN’s place in the arbitration. URU paid SAN shareholders $1 and settled the JV’s outstanding obligations of $185 000 to its operating consultant, Pangea Exploration.

The arbitration ended in December, after URU agreed to acquire the remaining 26% interest in the project held by Umnex.

URU plans to issue 33.2-million shares to Umnex Minerals Limpopo in two tranches. These are subject to a lock-in agreement under which 3.3-million shares will be released from lock-in on quarterly intervals.

As part of the transaction, URU will also have the right to acquire all current prospecting right applications within 5 km of the current Zebediela prospecting rights and the right to acquire any such rights granted to SAN, Pangea, Umnex or any corporate member of Umnex’s parent company, Umbono Capital Group, within the next five years. URU will also acquire the right to explore for and develop all platinum- group elements, iron and copper resources on the Zebediela nickel project, which was previously excluded from the SAN JV.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Uru Metals, tel +1 416 504 3978 or fax +1 416 504 3982.