Uran Limited has entered into a joint venture to acquire a 65% interest in the Grants Ridge uranium project
in the Grants Mineral Belt in north-west New Mexico, USA.

Uran can earn a 65% interest in the project from Uranium Energy Corp (AMEC:UEC) by US$1,500,000 over 5 years. Uran will also deliver a total of 3.25 million shares to UEC staged over 3 years.

Grants Ridge Project includes 270 granted mining lode claims, several patented leases and some freehold land covering 2,270 hectares in the central part of the Grants Mineral Belt. The project targets the Todilto Limestone, which hosts numerous historic underground and open-pit mines with grades ranging from 0.18%-0.38% U₃O_8, with an average mined grade of 0.23%.

Most of the historic uranium mines in the Todilto Limestone also produced substantial amounts of vanadium at grades ranging from 0.03-0.5% V₂O₅.

Known mineralisation is in fairly flat-lying stratigraphy, at depths ranging from surface at the Section 4 and Section 9 mines, to 150 metres at F33 mine under a small mesa. The shallow depths together with high-grade mineralisation make the area very attractive for mining.

Grants belt produced over 340,000,000 lbs U308 (154,545 tonnes) prior to 1986 and was the largest producing uranium field in the USA in the previous production cycle. It includes the well-known Poison Creek and Ambrosia Lake uranium districts, and is known for historic high-grade uranium production.

At least two mines in the belt are currently permitted to resume production.

New Mexico provides a stable social and political environment with well-established mining laws and a long history of uranium mining. There are no statutory expenditure commitments to maintain mining lode claims in New Mexico.