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UXA Resources Directors Vote With Their Wallets, Increase Holdings Through On Market Investment

UXA Resources (ASX: UXA) non-executive chairman Neill Arthur and managing director Russell Penney have demonstrated their confidence in the company with further investment on-market.

Arthur has increased his shareholding by 350,000 shares for A$0.004 per share, or a total consideration of $1,400, while Penney has acquired a further 500,000 shares for $0.005 each, or a total consideration of $2,500.

The increase in the directors' interests comes at a time when UXA is preparing to start drilling at its Nabarlek uranium project in the Northern Territory.

The company is on the hunt for high value unconformity style uranium mineralisation with the backing of India's largest company, Reliance Industries.

Reliance Industries is the largest publicly traded company in India by market capitalisation and the second largest company in India by revenue, behind Indian Oil. It is also India's largest private sector company by revenue and profit.

The Nabarlek North and Nabarlek West licences, which cover 221 square kilometres, share similar geological features with the former high grade Nabarlek open cut mine, 7 kilometres to the south, and the operating Ranger uranium mine, run by Rio Tinto's (ASX: RIO) 68% owned subsidiary Energy Resources of Australia (ASX: ERA).

Highlighting the prospectivity of the region, Nabarlek North lies just 280 metres immediately north of a recent high grade discovery (U40 area) which delivered uranium intercepts up to 6.8 metres at 6.71% U3O8.

UXA and Reliance subsidiary, RIL Australia, have finalised plans for the start of a 30-hole, 2,600 metre reverse circulation drilling program at Nabarlek North. RIL Australia holds 49% interest in the licences and is contributing 49% of exploration funding.

The program will focus on three target areas for high value unconformity style uranium mineralisation, and is expected to start in mid-July.

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