| Tue 10 Jul 2007, 8:23 | | SXR - Uranium One - Uranium One Provides Update on |
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SXR
SXR
SXR - Uranium One - Uranium One Provides Update on Global Operations and
Announces Additions to Management Team
sxr Uranium One Inc
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: SXR & ISIN: CA87112P1062
Share code on the TSX: SXR & ISIN: CA87112P1062
("Uranium One")
Trading Symbols: SXR - Toronto Stock Exchange, JSE Limited (Johannesburg
stock exchange)
NEWS RELEASE
July 9, 2007
Uranium One Provides Update on Global Operations and Announces Additions to
Management Team
Toronto, Ontario and Johannesburg, South Africa - Uranium One Inc.
("Uranium One") is pleased to provide an update on each of its operating
and development projects. Highlights include:
* First shipment of ADU from Dominion; mine ramp up and planned phased
plant commissioning continuing
* Akdala production remains ahead of year to date budgeted levels
* Construction of South Inkai and Kharasan continues to progress with
production expected to commence in Q4 2007 and Q1 2008, respectively
* Honeymoon construction progressing towards production start-up in Q1
2008
* Further senior appointments to strengthen management team
Dominion Reefs Uranium Mine
Uranium One has shipped its first tanker of ADU (ammonium diuranate) from
the Dominion Reefs Uranium Mine (DRUM) near Klerksdorp, South Africa. ADU
is a concentrate containing uranium which after calcining is converted into
uranium oxide (U3O8).
The first shipment of ADU from the Dominion Reefs Uranium Mine was
delivered to the facilities of Nuclear Fuels Corporation of South Africa
("Nufcor SA") on July 9, 2007, in compliance with the Corporation`s
calcining agreements with Nufcor SA.
Uranium One is now producing ADU on a continuous basis from the Dominion
plant and the operation is progressing towards commercial production. The
solvent extraction (SX) section of the plant was successfully commissioned
during June 2007. This now completes the full hot commissioning of the
atmospheric leach uranium production section.
Cold commissioning of the pressure leach section of the plant has commenced
with the first of two autoclaves. It is expected that ore will begin to be
processed through this vessel in July. The autoclave is designed to
increase uranium recoveries from approximately 55% being achieved under
atmospheric leach conditions to approximately 85%. Each autoclave is
designed with a throughput capacity of 100,000 tonnes of ore per month.
Commissioning of the second autoclave, due for completion in August, will
commence in September and will result in a total plant throughput capacity
of 200,000 tonnes of ore per month. The pressure leach commissioning is
one of the last stages of the phased plant commissioning approach.
Uranium One is advancing the development of the three trackless declines
(Rietkuil 1, Dominion 1 and Dominion 2). Stoping operations have commenced
from all three production sections. During the ramp up of mining
operations, underground ore sourced from stoping operations is being
supplemented by surface ore from the Dominion Tailings resource.
The Company expects to achieve the feasibility study production target of
491,000 pounds U3O8 from Dominion during 2007.
As a result of successful Dominion conceptual expansion studies, Uranium
One has also commenced with feasibility and pre-feasibility studies
considering a staged production and plant expansion from 200,000 tonnes per
month, to 300,000 and then 400,000 tonnes per month. This is envisaged to
occur through an expansion of the present solvent extraction circuit plus
the addition of radiometric sorting, as well as fully integrating into the
existing plant an additional autoclave, boiler, semi-autogenous grinding
mill as well as a separate counter current decantation (CCD) circuit with
capacity of 100,000 tonnes per month.
The expansion would include two additional declines sunk to a depth of 500
metres at the Dominion section and a vertical shaft to a depth of
approximately 1,000 metres at the Rietkuil section. The vertical shaft is
expected to provide access to high-grade resources in the down-dip
extension of the Rietkuil decline currently under development. It is
anticipated that the envisaged expansion could potentially result in an
annual production profile from the Dominion Reefs Uranium Mine of
approximately 7,000,000 pounds of U3O8 by 2012.
The feasibility study for the first expansion (to 300,000 tonnes per month)
and a pre-feasibility study for the second expansion (to 400,000 tonnes per
month) are expected to be completed in the first quarter of 2008.
Surface exploration drilling at Dominion is targeting the upgrading of
inferred to indicated resources in order to support the planned expansion
program. This drilling has included approximately 190 additional holes
comprising some 85,000 metres of diamond drill core since the last resource
update (released in January 2007).
In addition, an aerial survey is being flown during July and August 2007
over the Ottosdal exploration area to facilitate the definition of targets
to be drilled during the remainder of 2007. The Ottosdal exploration area
is the projected strike extension of the Dominion Reefs west of DRUM.
Combined with areas immediately adjacent (to the south) of the current
mining area, the Dominion Reefs are projected to extend on strike for
approximately 60 kilometres. Prospecting applications over some 57,565
hectares have been granted to Uranium One in the above described areas as
well as two smaller areas containing uranium and gold bearing Witwatersrand
Reefs. In line with Uranium One`s strategy, the shallow areas to a depth
of 500 metres below surface are being targeted.
Akdala Uranium Mine
At the Company`s 70% owned Akdala Uranium Mine located in Kazakhstan,
production is continuing to run ahead of year to date budgeted levels. The
number of drill rigs at site has increased from three to six with the
addition of a second drill contractor. The number of drill rigs is
sufficient to ensure that wellfield development should continue to match
budgeted production levels from the mine.
The yellowcake precipitation and filtration plant commenced construction in
April 2007 and is expected to be completed by Q4 2007. When operational,
this plant is expected to result in cash operating cost savings as the
Company will then no longer be required to use external facilities for
yellowcake precipitation and filtration.
South Inkai Uranium Project
At the Company`s 70% owned South Inkai Uranium Project located in
Kazakhstan, construction of the uranium processing facilities and
associated infrastructure remains on budget and production is expected to
commence in Q4 2007.
There are now seven drill rigs on site including two new GEFCO SS-40 drill
rigs manufactured in the United States. A training program for the drill
crews on the new GEFCO rigs is underway and is expected to result in
drilling productivity improvements once completed.
The resource infill drilling program at South Inkai is continuing and an
updated resource estimate is expected to be completed by the end of 2007.
South Inkai currently has a NI 43-101 compliant inferred resource base of
40.4 million tonnes grading 0.043% U containing 43.5 million pounds U3O8
attributable to Uranium One.
Wellfield development has commenced with approximately 50 wells completed
at the end of May 2007 and piping is being installed to allow for
acidification of the orebody later this month.
Kharasan Uranium Project
At the Company`s 30% owned Kharasan Uranium Project in Kazakhstan,
construction of the uranium processing plant and associated infrastructure
is continuing and production is expected to commence in Q1 2008.
A total of seven drill rigs are now on site including two new GEFCO SS-40
drill rigs. Uranium One is expecting an additional four GEFCO SS-40 drill
rigs to be deployed in Kazakhstan during Q3 2007, with a minimum of two
being mobilized at Kharasan.
The resource infill drilling program is continuing at Kharasan and an
updated resource estimate is expected to be completed by the end of 2007.
Uranium One`s current attributable NI 43-101 compliant resources at
Kharasan stand at 0.8 million tonnes grading 0.201% U containing 4.1
million pounds U3O8 in the indicated category and an additional 9.2 million
tonnes grading 0.095% U containing 22.6 million pounds U3O8 in the inferred
category.
Wellfield development at the project has commenced with a total of nine
wells completed at the end of May 2007.
Honeymoon Uranium Project
At Uranium One`s 100% owned Honeymoon Uranium Project in South Australia,
final design details are being completed and construction and
infrastructure development activities are continuing in order to meet the
targeted commencement of production in Q1 2008.
A drill rig has been deployed at Honeymoon and monitor wells are currently
being drilled. Wellfield development drilling is expected to commence by
the end of Q3 2007. Long lead time equipment items have been ordered and
infrastructure development is well advanced.
Additions and Changes to Management Team
In line with the Company`s growth and international profile, Uranium One is
also pleased to announce several additions and changes to its management
team.
Uranium One has structured its operational capacity into regional time
zones. Robert van Niekerk and Greg Cochran will continue to head up the
Africa and Australasia regions, respectively, as Executive Vice Presidents.
Upon closure of the proposed Energy Metals Corporation (EMC) transaction,
Paul Matysek, the current CEO of EMC, will assume the role of Executive
Vice President, Americas for Uranium One.
Robin Merrifield, previously the Chief Financial Officer of UrAsia Energy,
has assumed the role of Executive Vice President and Chief Financial
Officer of Uranium One. This allows Jean Nortier, formerly the Chief
Financial Officer of Uranium One, to focus on business development,
portfolio management and value maximization of non-core assets. Jean now
has the title of Executive Vice President, Business Development.
In a previous news release dated June 14, 2007, Uranium One announced the
appointment of Fletcher Newton as Executive Vice President, Corporate and
Strategic Affairs. With the Company transitioning to the status of a
senior uranium producer, coupled with an international portfolio of assets
and relationships, Uranium One will seek to play a leading role in the
uranium and nuclear energy industries. As a result, Fletcher will assume
responsibility for government and regulatory affairs, uranium marketing and
vertical integration. Fletcher was formerly the Chief Executive Officer
for Power Resources Inc., the U.S. subsidiary of Cameco Corporation. He
was part of the original team that negotiated the HEU feed agreement and
helped to negotiate the agreement between Cameco and Kazatomprom for the
creation of the Inkai Joint Venture. Fletcher has also focused on working
with the U.S. Department of Energy to develop a strategy for the future use
of U.S. government inventories. With this background, Fletcher is expected
to play an important role in advancing Uranium One`s business initiatives
globally.
Ross Brown has joined Uranium One as Senior Vice President, Human Resources
and he will be responsible for the Company`s international human resources
function specifically focusing on integration and sustainable development.
Ross has over 30 years of HR management experience for domestic and
international companies in the natural resources and manufacturing sectors.
Prior to joining Uranium One, Ross was Vice President, Human Resources and
Administration at Centerra Gold Inc. Ross will be based in the Company`s
Toronto office.
To ensure the successful integration of Uranium One`s recent acquisitions,
the Company has identified the need for dedicated and focused integration
capacity. Dan Krzewski has been appointed as Vice President, Integration
and will be located in the Company`s Toronto office. Dan has over 30 years
of human resources experience and will be responsible for managing the
integration processes for Uranium One`s acquisitions.
With the acquisition of the Shootaring Mill and associated uranium
resources and with the proposed acquisition of EMC, Uranium One now has a
portfolio of conventional mining opportunities in the United States. A
projects team has been created comprising the necessary technical skills to
ensure that these opportunities are professionally brought to account in an
expeditious manner. Several of these project team members have recent
experience from the Company`s Dominion Reefs Uranium Mine.
Thys Heyns has been promoted to Senior Vice President, Projects in the
Company`s Johannesburg office. Thys was previously Consulting Geologist
and Vice President, Projects and was responsible for leading Uranium One`s
due diligence team on EMC. Thys now leads the Projects team with the
immediate objective of developing Uranium One`s United States asset base
and ensuring that Uranium One`s conceptual models for EMC are rolled out to
the existing EMC management team. During his career Thys has been employed
in senior positions in a number of organizations, responsible for company
exploration, geological, new business and mineral resource management.
Thys was previously employed by Avgold Limited as Chief Geologist and by
DRD Gold as Group Mineral Resource Manager.
In addition, Norman Schwab has been appointed Vice President, Mining and
will be part of Uranium One`s Projects team based in Johannesburg. Norman
will be specifically responsible for focusing on the Company`s conventional
mining opportunities in the United States. Norman was previously the
Acting Chief Operating Officer for Aflease Gold Limited, a majority-owned
subsidiary of Uranium One. Norman has over 23 years mining experience
encompassing both small and large underground mines, with the full scope
ranging from exploration and project work through to operation
optimization. Norman`s key project was the Target Gold Mine where he was
General Manager from July 2002 to May 2004.
Petr Valicek has joined as Vice President Engineering and Projects, Uranium
One Africa. Originally from the Czech Republic, Petr has worked in South
Africa for the last 16 years. He has both mining and engineering
experience, most recently with Anglo Platinum where he was based in
Rustenberg as Manager, Engineering: Smelters. Petr has also worked with
JCI Gold in South Africa. Petr has a B.Sc. in Mechanical Engineering as
well as a number of mining and engineering qualifications.
Sarel Ferreira has joined Uranium One Africa as Vice President, Mining.
Sarel joined Uranium One in March 2007 from Anglo Platinum where he had
been working as a production manager. Sarel is responsible for planning,
organizing and leading the mining operations at DRUM. As well as holding a
Mine Manager`s certificate, Sarel has a diploma in business management and
an MBA.
Uranium One President and CEO Neal Froneman commented:
"Our first shipment of ADU is a key milestone in delivering upon our growth
projections for Dominion. I am also pleased to say that our operational
teams are continuing to exceed budgeted production expectations at Akdala.
Construction activity at our South Inkai, Kharasan and Honeymoon Uranium
Projects is proceeding well and I am confident that these assets will soon
become significant growth drivers for our Company. The recent additions to
our management team strengthen the Company`s ability to execute on its
plans to become a senior uranium producer."
About Uranium One
Uranium One Inc. is a Canadian-based uranium producing company with a
primary listing on the Toronto Stock Exchange and a secondary listing on
the JSE Limited (the Johannesburg stock exchange). The Corporation owns 70%
of the operating Akdala Uranium Mine in Kazakhstan and is also developing
the South Inkai and Kharasan Uranium Projects in Kazakhstan. Uranium One
owns the Dominion Uranium Project in South Africa, as well as the Honeymoon
Uranium Project in South Australia. The Corporation recently acquired the
Shootaring Canyon Mill and associated assets in the western United States.
Uranium One is also engaged in uranium exploration activities in the
Athabasca Basin of Saskatchewan, South Africa, Australia and the Kyrgyz
Republic.
For further information, please contact:
Neal Froneman Chris Sattler
Chief Executive Officer Senior Vice President, Investor Relations
Tel: + 27 11 482 3605 Tel: + 1 416 350 3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Forward-looking statements: This press release contains certain forward-
looking statements. Forward-looking statements include but are not limited
to those with respect to the price of uranium and gold, the estimation of
mineral resources and reserves, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the development of
new deposits, success of exploration activities, permitting time lines,
currency fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated
reclamation expenses, title disputes or claims and limitations on insurance
coverage and the timing and possible outcome of pending litigation. In
certain cases, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates"
or "does not anticipate", or "believes" or variations of such words and
phrases, or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Uranium
One to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such
risks and uncertainties include, among others, the actual results of
current exploration activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, possible
variations in grade and ore densities or recovery rates, failure of plant,
equipment or processes to operate as anticipated, accidents, labour
disputes or other risks of the mining industry, delays in obtaining
government approvals or financing or in completion of development or
construction activities, risks relating to the integration of acquisitions,
to international operations, to prices of uranium and gold as well as those
factors referred to in the section entitled "Risk factors" in Uranium One`s
Annual Information Form for the year ended December 31, 2006 which is
available on SEDAR at www.sedar.com, and which should be reviewed in
conjunction with this document. Although Uranium One has attempted to
identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Uranium One expressly disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except
in accordance with applicable securities laws.
For further information about Uranium One, please visit www.uranium1.com
Date: 10/07/2007 08:23:28 Produced by the JSE SENS Department.
