African Energy Resources is boosting African based exposure to uranium with the 100% acquisition of 2 uranium based projects in Zambia.

The two projects, Chirundu Uranium and Kariba Valley were initially part of JV with Albidon.

African Energy is funding the acquisition from existing cash reserves with working capital funded by a partial drawdown of the USD 5 million convertible loan facility with Macquarie Bank.

Uranium has already been discovered with Chirundu containing the Njame and Gwabe deposits, which collectively contain a total of 11.1 million pounds in U3O8 in Measured, Indicated and Inferred Resources.

African Energy is looking to move the acquisitions forward quickly, and is evaluating a number of additional exploration targets at Chirundu and Kariba Valley tenements with the aim of boosting the resource.

A Pre Feasibility study was completed at Chirundu in May 2008 which gave African Energy a 70% interest in the project. Following this in 2009, there was a further boost to the project when the Zambian Ministry of Mines and Minerals Development granted a Large Scale Mining Licence for the development of Chirundu.

At Kariba Valley, which was the company's second JV with Albidon and prior to acquiring the 100% interest, African Energy held 30% stake and could have earned up to 70% interest by completing Pre Feasibility study and delivering an Indicated resource.

Already at the project, numerous targets have been identified which African Energy said require systematic evaluation to prioritize for drilling.

Kariba is strategically located about 250 kilometers from Lusaka by road and 50 kilometres south west of Denison Mines tenement which contains the Dibwe and Mutanga uranium deposits. steelguru.com