MANTRA RESOURCES LIMITED - ASX: MRU

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Description

Mantra Resources Limited ('Mantra') is an emerging uranium company with a portfolio of quality projects in southern Africa. The Company is dual listed on the Australian Securities Exchange ('ASX') under the code 'MRU' and the Toronto Stock Exchange ('TSX') under the code 'MRL'. Mantra was recently added to the S&P/ASX 300 index.

The results of drilling at the Company’s flagship Mkuju River Project ('the Project') in southern Tanzania have confirmed the presence of multiple thick zones of sandstone-hosted uranium mineralisation at shallow depths at the Nyota Prospect ('Nyota' or 'the Prospect'). A Mineral Resource of 101.4 million pounds U3O8 (65% Measured and Indicated) has been estimated for the Prospect, and the potential exists to substantially grow the resource base with ongoing work.

The results of a Pre-Feasibility Study completed in March 2010 confirmed the technical and economic viability of the Project, and its capacity to operate with strong cash margins. Using the current Mineral Resource, Nyota can support an average annual production of 3.7 million pounds U3O8 over a minimum twelve year mine life. This represents a 48% increase in annual production over the results from the Scoping Study reported in June 2009 and there is strong potential to increase this further with ongoing exploration work.

The Company has commenced a Definitive Feasibility Study (‘DFS’) which is scheduled for completion during the first quarter 2011.

Mantra is focused on aggressively pursuing the ongoing exploration, appraisal and potential development of this outstanding uranium Project in order to fulfil its strategic objective of becoming a significant uranium producer in the near-term.

Mantra's Board and senior management have extensive exploration, development and production experience in southern Africa, including Tanzania.

The Company has a strategic alliance with Highland Park S.A. (includes original founders and former executives of LionOre Mining International Limited) and strong cash reserves.

Mine For

uranium

Location of operation(s)

Tanzania, Mozambique

Address

Level 9 , BGC Centre , 28 The Esplanade
PERTH, WA, AUSTRALIA

Phone

(08) 9322 6322

Email

Website

http://www.mantraresources.com.au/

Last Updated

18/03/2011