LONDON (ShareCast) - AIM explorer URU Metals has been buoyed by the potential for its Närke project in Sweden to become one of the 'top five' uranium mines in the world.

A competent person's report on the Närke Uranium-Oil Project indicated that it had the potential to hold as much as 303,000 tonnes of U3O8 yellowcake uranium compound.

The report cited an average uranium concentration of 175 parts per million uranium (ppm), which is equal to 206 ppm U3O8.

However, the company warned investors that these resource figures were based on a non-SAMREC compliant order of magnitude resource estimate, where independent consultant MSA Group had used “unverified information” from previous geological reports on the property.

URU's Chief Executive Officer Roger Lemaitre nevertheless was moved to observe that the report pointed to Närke having “the potential to become one of the world's top five uranium projects in terms of total contained uranium, exceeding known resources at some of the worlds' largest and most famous uranium mines”.

The competent person's report also suggested that the historic reports, carried out by previous operators, imply that the Alum Shales on the Närke Project have oil yields between 4% and 5.5%, which may be improved by newer oil shale extraction processes.

Lemaitre said that the company will now attempt to verify this unverified historic data, starting with a preliminary metallurgical test program to determine the most economically-effective methods of extracting uranium and oil from the project.

“We believe that it is prudent to reduce the engineering risk by completing the PMT program before investing significant capital into defining the immense resource with a verification drilling program."

Shares in URU Metals were up 4.9% at 2.13p at 09:14 on Thursday.

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