URU Metals reports on lacklustre first half

23rd Dec 2016 11:31

(ShareCast News) - Multi-commodity exploration and development company URU Metals announced its interim results for the six months to 30 September - a period in which the equity market for the mining industry has showed signs of improvement, the board said.The AIM-traded firm indicated that no significant progress was made during the period in developing the company's Zebediela Nickel Project."However, on November 22, the company announced that it raised £0.74m through a placing of 185 million shares at 0.4p per share, the proceeds of which will be applied to progress the work program for this project," said chairman David Subotic."The work program, which is scheduled to start in January 2017, includes drill testing potential extensions of the nickel mineralization, infill drilling, metallurgical studies and the completion of an updated mineral resource estimate."URU said the scope of work is to increase the confidence on the potential magnetite resource which has been identified in the oxide and sulphide zones of the orebody."Confirmatory drilling, combined with metallurgical test work on new and existing drill holes, is intended to generate sufficient data to update the existing preliminary economic assessment to produce an updated high level project inherent rate of return and net present value," Subotic explained."The company has filed a revised project plan with the Department of Mineral Resources of South Africa."At the reporting date, URU had cash resources of $0.37m and no borrowings, and during the period it received nil revenue with a net loss of $0.18m - narrowing from $1.15m a year earlier."URU continues to believe that the long-term fundamentals of the base minerals industries remain positive and will be working hard in the coming year to unlock the value of our projects for our shareholders," Subotic said."The company maintains its core strategy to develop its nickel assets, as the board anticipates growing demand and price appreciation for nickel in the short to medium term."