Contact Uranium shares up on Peru discovery

Shares in West Perth-based Contact Uranium Ltd closed 10.9 per cent higher to 30 cents today following the discovery of three further uranium targets at the company's Kihitian uranium project in Peru.

Field exploration coupled with a surveying programme enabled the company to identify three new prospects in its Kihitian licence that have previously been deep trenched or adited.

Jahuita, Tuturumani and Chilcuno Chico appear to lie within, or very close to, uranium highs identified by the company's 2007 radiometric survey over the Kihitian licence.

At Chilcuno Chico, a sample from a reported "massive" body contains up to 34.75 per cent U3O8. All occurrences have returned outstanding grades.

Contact chairman Richard Napier said Kihitian had always appeared to have high potential, in particular at the Pinochio prospect, but the latest results suggested there was real potential throughout the licence.

"Our plan is now to undertake a detailed mapping and sampling programme with a view to having drill-ready targets by mid 2008," he said in a statement.

Contact has a portfolio of uranium projects in Peru and Kyrgyzstan with current JORC resources of 10.9 million lbs of U3O8.

The company's largest project is the Corachapi Uranium deposit in Peru where the project has a current JORC compliant Inferred Resource of 9.2 million lbs of U3O8.

In total the company's uranium licences cover nearly 2,500 square kilometres.