PERTH, Western 
, May 6, 2011 (Canada NewsWire via COMTEX News Network) --
Highlights:
-- Phase 1 DFS confirms robust technical and economic viability of
the Project, demonstrating that Nyota will be a low cost, near
term uranium producer;
-- Phase 1 DFS is based on Measured and Indicated Resource base of
65.5 million contained pounds of U(3)O(8) at an average grade
of 439 ppm;
-- Annual production of 4.2 million pounds of U(3)O(8) during
steady state operation, based on average annual throughput of
5.2 million tonnes of ore at an average grade of 437 ppm;
-- Initial mine life of 12 years (including ramp up and ramp down)
for Phase 1, with potential to increase further;
-- Operating costs of US$22.04 per pound of U(3)O(8) (steady
state);
-- Capital costs estimated at US$390.5 million, including all
associated infrastructure but excluding mining fleet and
ancillary capital, which is estimated at US$39.6 million;
-- Hot commissioning within 21 months from the commencement of
detailed engineering; and
-- Phase 2 Heap Leach PFS is due for completion during Q2 2011.
MantraResources Limited ('Mantra' or 'Company') (ASX:MRU, TSX:MRL) is pleasedto announce completion of the Phase 1 Definitive Feasibility Study('DFS') for the Company's Nyota Prospect ('Nyota'), part of the whollyowned Mkuju River Project ('MRP' or the 'Project') in Tanzania, whichconfirms the robust technical and economic viability of the Project anddemonstrates that Nyota will be a low cost, near term uraniumproducer.
The Phase 1 DFS is based on the Mineral ResourceEstimate ('MRE'), announced in November 2010, which included totalMeasured and Indicated Resources of 67.7 million tonnes averaging 439ppm for 65.5 million contained pounds of U(3)O(8). The additional 41.2million tonnes averaging 395 ppm for 35.9 million pounds of U(3)O(8)classified into the Inferred Resource category were excluded from theDFS.
The resource base for Phase 1 supports an annual productionof 4.2 million pounds of U(3)O(8 )during the 10 years of steady stateoperations, based on an average annual throughput of 5.2 million tonnesof ore. There is potential to increase this further through theupgrading of the existing Inferred Resources and ongoing explorationwork. The average strip ratio over the life of mine is 1:3.6 (ore towaste).
The DFS is based on an owner operator mining scenario andthe processing plant is based on simple acid leach and conventionalResin-In-Pulp ('RIP') technology. The operating costs for Phase 1 ofthe Project average US$22.04 per pound during steady state operations, adecrease of 12% from the Pre-Feasibility Study ('PFS') results. Thissignificant improvement is predominantly the result of an improvedunderstanding of the metallurgical process and process flow sheetchanges that have increased metal recoveries. Higher volume annualthroughputs and metal production have also contributed to loweroperating costs.
The capital costs (determined to a nominalaccuracy of +/- 10%) for Phase 1 of the Project are estimated atUS$390.5 million; US$163.1 million for the process plant and US$227.4million for project infrastructure and project management. In addition,the mining fleet and ancillary capital is estimated at US$39.6million. The increase in capital costs from the PFS is as a result of alarger process plant to handle the higher annual production volumesand the requirement to line the tailing storage facility ('TSF') with ahigh density polyethylene ('HDPE') liner.
Based on the detailedImplementation Plan, the Project can be ready for hot commissioningwithin 21 months from the commencement of detailed engineering.
Commentingon the DFS, Mantra's CEO Peter Breese said "The completion of the Phase1 DFS is a significant milestone for the Company. The positive resultsclearly demonstrate that the current resource base at Nyota cansupport a large scale, low cost, long life uranium mining operation. Wealso believe that there is potential to increase the production rateand mine life by upgrading the existing Inferred Resources; thetreatment of lower grade mined ore through the Phase 2 expansion; andcontinued exploration to unlock the prospectivity of the broader MRP".
TheCompany is currently undertaking a PFS on heap leaching lower grademined ore for the Project's second phase of growth. It is envisagedthat this Phase 2 would commence after the RIP circuit has reachedsteady state operation and provide the Project with an incrementalincrease in production over and above the Phase 1 annual production of4.2 million pounds of U(3)O(8).
The treatment of lower grade,mined ore provides the opportunity to further maximise the value of theProject through incremental production growth at low capital andoperating costs. The Phase 2 production will further enhance theProject's overall capital efficiency as minimal infrastructural capitalwill be required as this would have essentially been sunk in Phase 1.
Afull version of this release is available on the Company's website(www.mantraresources.com.au), ASX (www.asx.com.au), and SEDAR(www.sedar.com).
Mantra is an emerging uranium producer, focusedon aggressively pursuing the development of its flagship asset, theMkuju River Project in Tanzania, in order to fulfil its strategicobjective of becoming a significant uranium producer in the near-term.
In March 2011, Mantra received an revised all cashoffer from ARMZ, the world's fifth largest uranium producer withoperating mines in Russia and, through its strategic ownership ofshares in Uranium One, in Kazakhstan and the United States. AMRZ iswholly owned by the State Atomic Energy Corporation, "Rosatom", theRussian State Corporation for Nuclear Energy which consolidates allnuclear assets of the Russian Federation. For additional information,please visit ARMZ's website: armz.ru/eng.
Forward Looking Statements
Thisreport contains 'forward-looking information' that is based on theCompany's expectations, estimates and projections as of the date onwhich the statements were made. This forward-looking informationincludes, among other things, statements with respect to the Company's businessstrategy,plans, objectives, performance, outlook, growth, cash flow, earningsper share and shareholder value, projections, targets and expectations,mineral reserves and resources, results of exploration and relatedexpenses, property acquisitions, mine development, mine operations,drilling activity, sampling and other data, grade and recovery levels,future production, capital costs, expenditures for environmentalmatters, life of mine, completion dates, uranium prices, demand foruranium, and currency exchange rates. Generally, this forward-lookinginformation can be identified by the use of forward-looking terminologysuch as 'outlook', 'anticipate', 'project', 'target', 'likely','believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could','should', 'scheduled', 'will', 'plan', 'forecast' and similarexpressions. Persons reading this report are cautioned that suchstatements are only predictions, and that the Company's actual futureresults or performance may be materially different.
Forward-lookinginformation is subject to known and unknown risks, uncertainties andother factors that may cause the Company's actual results, level ofactivity, performance or achievements to be materially different fromthose expressed or implied by such forward-looking information.Forward-looking information is developed based on assumptions aboutsuch risks, uncertainties and other factors set out herein, includingbut not limited to the risk factors set out in the Company's AnnualInformation Form.
This list is not exhaustive of the factors thatmay affect our forward-looking information. These and other factorsshould be considered carefully and readers should not place unduereliance on such forward-looking information. The Company disclaims anyintent or obligations to update or revise any forward-lookingstatements whether as a result of new information, estimates oroptions, future events or results or otherwise, unless required to doso by law.