Signet Mining

Niger

One of the world’s top uranium producers
Niger is the fourth-largest uranium producing country worldwide with the mining operations at SOMAIR (Arlit open pits) and COMINAK (Akouta underground mine) ranked amongst the ten largest uranium producers and delivering approximately 8.7% of the world in supply. Uranium was first discovered in Niger in 1957 with showings at Azelik by the “Bureau Minier de la France d’Outre-mer.” Detailed studies and airborne geophysical surveys carried out immediately thereafter led to a number of discoveries over the next ten years:

Azelik and Abokorum (1959)
Madaouela (1963)
Arlette, Ariege, Artois, Taza, Tamou and Takriza (1965)
Imouraren (1966)
Akouta (1967)

The cumulative production of Niger passed 100,000 tonnes uranium in November 2006 and some analysts refer to a further potential of up to 200,000 tonnes uranium available for exploitation.

Country Overview

Niger became independent from France in 1960;
Democratic government since 1993;
Candidate country under the Extractive Industries Transparency Initiative;
15.3m in habitants;
Total area of 1.267 million km²;
Desert climate with 2 distinct seasons (dry and wet);
There is a national network of paved roads that stretches from Niamey in the west to the far east of the country; all major cities are accessible by paved roads with branches leading north to Agadez and Arlit;
In December 2005, Niger received 100% multilateral debt relief from the IMF. Future growth may be sustained by exploitation of oil, uranium, gold, coal, and other mineral resources;
GDP per capita of US$700;
Niger’s natural resources include uranium, coal, iron ore, tin, phosphates, gold, molybdenum, gypsum, salt and petroleum.

Our Operations
Niger Mining Services SARL (NMS), a wholly owned subsidiary of Signet, was established in June 2007. NMS holds 7 concessions in Niger, all in the highly prospective Tim Mersoi basin. The Tim Merso? Basin is currently the scene of intense activity involving numerous international companies, including AREVA, Niger Uranium (AIM), GoviEx, Global Uranium and Homeland Uranium (TSX). Major projects by Areva (Imouraren) and SOMINA/CNNC (Azelik-Teguidda) are currently in development and construction.

NMS has its head office in the capital of Niamey. The project office is located in Agadez, which is the main hub for the area. It is within 250km from all five concessions. Additionally, semi-permanent field camps, as well as short-term fly camps will be established as the need arises.

The country team is under the leadership of NMS Country Manager – Simon Riekert, who is a qualified metallurgist and project manager with more than 17 years experience in the mining industry. He is assisted by Project Geologist – Johann Smuts, Logistic Manager – Coenie Eramus, and a team of geologists and supporting staff.

Currently NMS (including African Uranium) holds 7 uranium exploration permits in Niger. Table below summarizes the concessions.

The geology of the eastern Tim Mersoï basin (NMS concessions outlined in yellow). Inset shows the larger Iullemeden Basin and location of the Hoggar and Aïr massif.

Permit Name	Area (km²)	Date Granted	Number
Terzmazour 2	440.4	05 June 2008	000067/MME/DM
Terzemazour 3	422.3	04 March 2008	T.B.C
Adrar-Emoles 1	488.7	16 Aug 2007	2007-348/PRH/MM/E
Adrar-Emoles 2	487.1	16 Aug 2007	2007-343/PRH/MM/E
Tasadet 1	500	16 Aug 2007	2007-344/PRH/MM/E
Tasadet 2	500	16 Aug 2007	2007-345/PRH/MM/E
Inrabarekat 2	500	16 Aug 2007	2007-319/PRH/MM/E

Regional Geology
The NMS concessions, as well as all known uranium deposits in Niger, are located in the Tim Mersoï sedimentary basin, a sub-basin of the vast Lullemeden basin that covers most of western Niger and extends into neighbouring countries to the west and south.

The Tim Mersoï Basin is bounded to the north by the Hoggar massif and to the east by the Aïr Massif, both of which comprise basement rocks of the Pre-Cambrian West African Shield. The Aïr Massif consists of a Precambrian gneissic basement intruded by a number of Pan-African acid-alkaline ring complexes and later Paleozoic-Cenozoic volcanic rocks. It is these felsic igneous rocks that are believed to have been the primary source of the uranium mineralization in the Tim Mersoï Basin.

During the Palaeozoic a gulf opened in the Tim Mersoï - Iullemeden Basin, which was originally fed by epicontinental-marine sediments but became progressively lagoonal, deltaic, and ultimately continental in Lower Carboniferous times. This change in sedimentation corresponded with major uplift along the Aïr axis.

Throughout the Mesozoic era the uplifted massif was subjected to erosion by intermittent streams and rivers to form broad fluvial deposits, with restricted volcanogenic sedimentation. During the Upper Jurassic to Lower Cretaceous, the fluviodeltaic sedimentation gave way to widespread lacustrine sediments followed by another period of fluviodeltaic sedimentation. Marine conditions were subsequently re-established throughout the southern Sahara in the upper Cretaceous.

Uplift movements beginning in the Middle Eocene gave the basin its present aspect. The general dip of the strata is approximately 3° to the west, thus younger sediments outcrop westwards from the Aïr massif.

Following the Eocene uplift, the basin was subsequently filled with continental fluvial and lacustrine sediments. Further uplift movements resulted in an extended land surface undergoing weathering and residual iron-oxide accumulation in a humid tropical climate. Subsequent dry periods caused an induration and sealing of the iron-rich surface. Erosion of this surface during humid periods in the Pleistocene caused the formation of the present ironstone-capped plateaux and terraces (‘cuirasses’) typical of the area.

Deposit Type and Exploration Model
Uranium occurrences within the Tim Mersoï Basin belong to the sandstone-hosted deposit group. Three main types of sandstone-hosted uranium deposits occur:

Tabular
Roll-front
Tectonic-lithologic

Arguably, the Niger deposits cross the spectrum of these deposit types, although undoubtedly the North-South Arlit flexure and associated faulting is one of the most significant controls on uranium mineralization, hence the tectonic-lithologic subgroup may be considered dominant. Several stratigraphic units, such as the Assaouas, Tchirezrine 2, Teloua, Tarat, Madaouela and Guezouman formations, have been known to host uranium mineralization. The deposits are typically associated with basal unconformities and these stratigraphic intervals will be the focus of NMS exploration within its concessions.

Generalized stratigraphy of the Tim Mersoï Basin showing host formations of major deposits

The deposits within the Tim Mersoď Basin occur in permeable sandstones, usually deposited in epi-continental fluvial to lacustrine sedimentary environments. The source of the uranium occurrence is believed to be Pan-African acid-alkaline intrusions and/or Lower Paleozoic to Cretaceous volcanic rocks within the Aïr Massif. The igneous association is supported by work that confirms the presence of Zr, Mo, V and Zn in the deposits. The age of the mineralizing event is not precisely determined but is younger than the age of sedimentation. According to fluid inclusions studies, brines were recorded during the main mineralizing event at temperatures ranging from 85 to 175°C (Pagel et al., 2005). Uranium is highly mobile in the oxidizing environment and mineralization typically precipitates from fluids under reducing conditions that may be caused by a variety of reducing agents. Structural/sedimentary traps for u-bearing fluids are also believed to have played an important part in deposit formation.

A schematic model for uranium mineralization in the Tim Mersoï Basin, illustrating the processes described above. The ‘Fault Type’ deposits shown in the simplified illustration on the eastern boundary of the basin also occur in proximity to the Arlit flexure and associated East-West faults.

A minimum country target of 40 million pounds contained U₃O₈ has been set for Niger, based largely on the economic deposits currently mined or under development in the Tim Mersoï Basin.

Schematic model of uranium deposit types and formation in the Tim Mersoï Basin (modified after Niger Uranium CPR, Sept 2007)

Project Summary

Project	Geology	Status
Terzemazour ( Terzemazour 2, Terzemazour 3 concessions)	Within the Eastern Tim Mersoï Basin, concessions straddle the important north-south Arlit flexure with coincident east-west and northeast trending structures Uplifted stratigraphy adjacent to the Arlit flexure brings target stratigraphy closer to surface and creates potential structural ‘traps’ for mineralization	Regional reconnaissance from 1960 to 1980 by French and Japanese: Historic trenches show highly anomalous uranium mineralization Historic drillhole reported uranium mineralisation close to basement Completed low altitude, helicopter-based radiometric and magnetic survey in April 2008 Four key target areas identified and prioritized, with two principal stratigraphic targets Drilling program initiated
Adrar Emoles (Adrar Emoles 1, Adrar Emoles 2, concessions)	Concessions along the flanks of the Tim Mersoi basin, east of the Arlit flexure with important structures, including major fault extending east to Imouraren Basin sediments dip to west, exposing several target stratigraphic intervals within concession area, including those hosting Arlit and Akouta deposits	Regional reconnaissance by French and Japanese parastatals: 21 historic drillholes in area with several mineralized intercepts up to 0.18% U₃O₈ Surface uranium anomalies associated with stratigraphic targets also known from drill data to host mineralization at depth
Tasadet & Intabaraket (Tasadet 1, Tasadet 2 and InTabaraket 2 concessions)	Within the Central Tim Mersoï Basin, concessions host thick stratigraphic sequence.	Area underexplored to date Completed low altitude, helicopter-based radiometric and magnetic survey in March 2008 Identified several uranium anomalies and fault/fold structures

Click here to see a gallery of photographs from Niger