| Fri 9 Nov 2007, 9:01 | | FUM - First Uranium Corporation - First Uranium`s |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium`s Ezulwini Prospecting Rights
Application Receives Conditional Approval By South African
Department Of Minerals And Energy
First Uranium Corporation
(Continued under the laws of British Columbia, Canada)
(Registration number C0777384)
(South African registration number 2007/009016/10)
Share code: FUM & ISIN: CA33744R1029
FIRST URANIUM CORPORATION
NEWS RELEASE - November 8, 2007
FIRST URANIUM`S EZULWINI PROSPECTING RIGHTS APPLICATION RECEIVES CONDITIONAL
APPROVAL BY SOUTH AFRICAN DEPARTMENT OF MINERALS AND ENERGY
Toronto, Ontario - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Corporation") today announced that
the South African Department of Minerals and Energy ("DME") has granted
conditional approval for the Corporation`s application in respect of a
Prospecting Work Program (the "Program") on properties contiguous to the north-
east and south-east of First Uranium`s Ezulwini Mine property in South Africa.
The Ezulwini Mine is an underground uranium and gold mining project, with mining
rights covering an area of 3,717 hectares. The Program covers 6,843 hectares of
property known to contain uranium and gold mineralization adjacent to the
Ezulwini mining rights.
Final approval by the Regional Manager of the DME is subject to the approval of
the relevant Environmental Management Plan ("EMP") for the exploration drilling
from surface. First Uranium must submit further required materials to the DME
by the middle of November, with approval of the EMP, if satisfactory, expected
to occur on or before December 11, 2007.
Previous exploration drilling conducted in the area by Gencor Limited, Anglovaal
Mining Limited and JCI Limited confirmed the presence of uranium and gold
mineralization along the approximately 20 kilometres of strike within the
prospecting area included in the Program. Based on the results of the
historical drill data, the Corporation plans to immediately proceed with the
Program to explore this prospecting area and will use the historical information
to guide the placement of new drill holes. Qualified geologists are currently
reviewing the historical data.
The initial stages of the Program will test the strike extent of the known pay
shoots for uranium and gold on the Middle Elsburg Reef in an area east of the
Ezulwini Mine. The Ezulwini Mine and the properties which are subject to the
Program are located in the Witwatersrand Basin, which is the largest known gold
province in the world with deposits having been mined for well over 100 years.
In the past, there were also four uranium plants in production in this area. The
location of the properties which are subject to the Program and neighbouring
mines surrounding the Ezulwini Mine, which is located approximately 40
kilometres southwest of Johannesburg. (See map entitled `Ezulwini Locality Plan`
which is available on the company`s website.)
Several groups of reefs have been identified in the area, including the
Livingstone Reefs, the South Reef, the Kimberley Reefs, the Bird Reefs, the
Mondeor Reefs, the Ventersdorp Contact Reef and the Black Reef, as well as the
Elsburg Reefs associated with the Ezulwini Mine. Within these reefs, a total of
nine reef horizons have been mined for uranium and gold at depths of between 600
metres and 1,260 metres below surface. A map of the Ezulwini Mine and its
shafts, as well as the three Cooke shafts on the property adjacent to the
western boundary of the Ezulwini prospecting area, are also available on the
company`s website. This map shows the location of 11 historical bore holes
drilled in the prospecting rights area on which gold and uranium payshoots were
defined. (See map entitled `Ezulwini Prospecting Right.`) On the map, the `A-
B` line that intersects with the payshoots marks a cross-section of the area
discussed below.
A cross-section of the historical target area, including the layer of dolomites
which overlay much of the mineralized reefs in the Witwatersrand Basin is also
available on the company`s website. The properties which are subject to the
Program, are shown to the right of this cross-section at depths of between 800
metres and 1,200 metres below surface. (See cross-section entitled `Section A-B
Looking North.`)
During the years 1961 to 2001, the Ezulwini Mine produced 8.4 million pounds of
uranium and 12.7 million ounces of gold. The Cooke section has also been mined
extensively on the property north of the Ezulwini Mine and immediately west of
the target area, and has produced 23 million pounds of uranium and 51 million
ounces of gold.
The Program is planned to include analysis of existing drill-hole data for
uranium and gold mineralization followed up by surface diamond drill exploration
with drill hole depths of up to 2,000 metres.
"The Prospecting Work Program fits with the Corporation`s strategy of focusing
its exploration on or near its current uranium and gold projects in order to
leverage the infrastructure of those projects," said Gordon Miller, First
Uranium`s President and Chief Executive Officer. "We have set aside US$10
million for this exploration program, which has the potential to add to the
known uranium and gold resources available to the Ezulwini Mine."
The Ezulwini Mine is already hoisting ore and toll treating ore at a
neighbouring third-party gold plant. The Corporation is on schedule to
commission its own gold plant in April 2008 and its own uranium plant in June
2008. Based on the currently defined measured and indicated resources, the
average annual production for the 18-year life of this project, the Ezulwini
Mine is expected to be 290,000 ounces of gold and 888,000 pounds of uranium.
"In the meantime, we are on schedule to bring the Ezulwini Mine into full
production for uranium and gold," continued Mr. Miller. "Our current mine plan
is based on only 20% of the resource inventory of the existing mining rights,
including a significant inferred uranium resource. In a separate initiative,
the Ezulwini Expansion Program, we plan to convert part of those inferred
resources to measured and indicated. The intent of this initiative, announced
in July 2007, is to justify the capital required for the sinking of an
additional shaft, which would be used to access and mine the uranium and gold
resource at an accelerated rate, over and above the existing mine plan from the
existing main shaft. We recently acquired the use of a surface drilling rig and
expect to begin our drilling program on the Ezulwini Mine property on November
9, 2007."
Technical Disclosure Notes
The life of mine estimate and projected average annual production in this news
release relating to the Ezulwini underground mine project is extracted from a
technical report entitled "Technical Report - Preliminary Assessment of the
Ezulwini Project, Gauteng Province, Republic of South Africa" (the "Technical
Report") originally submitted on November 8, 2006, revised on December 5, 2006
and January 31, 2007 and further revised on May 9, 2007 prepared in accordance
with National instrument 43-101 ("NI 43-101) by R. Dennis Bergen, P.Eng and
Wayne Valliant, P.Geo of Scott Wilson Roscoe Postle Associates Inc., each of
whom is a "qualified person" under NI 43-101 and is independent of First
Uranium. The disclosure in this news release related to the RPA technical
report has been reviewed and approved by Mr. Bergen and Mr. Valliant.
Cautionary Language Regarding Forward-Looking Information
This news release contains certain forward-looking statements. Forward-looking
statements include but are not limited to those with respect to the estimation
of mineral resources and reserves, the realization of mineral reserve estimates,
the timing and amount of estimated future production, costs of production,
timing of development of new deposits, success of exploration activities,
permitting time lines and government regulation of mining operations. In
certain cases, forward-looking statements can be identified by the use of words
such as "plans", "will", "expects", "is expected", "budget", "scheduled",
"estimates", "intends", "projected", "goal" 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 First Uranium
to be materially different from any future results, performance or achievement
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.
Although First Uranium 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. It
is important to note, that: (i) unless otherwise indicated, forward-looking
statements indicate the Corporation`s expectations as at the data of this news
release; (ii) actual results may differ materially from the Corporation`s
expectations if known and unknown risks or uncertainties affect its business, or
if estimates or assumptions prove inaccurate; (iii) the Corporation cannot
guarantee that any forward-looking statement will materialize and, accordingly,
readers are cautioned not to place undue reliance on these forward-looking
statements; and (iv) the Corporation disclaims any intention and assumes no
obligation to update or revise any forward-looking statement even if new
information becomes available, as a result of future events or for any other
reason.
In making the forward-looking statements in this news release, First Uranium has
made several material assumptions, including but not limited to, the assumptions
referred to in this news release and assumption that: (i) approvals to transfer
or grant, as the case may be, mining rights will be obtained; (ii) metal prices,
exchange rates and discount rates applied in the preliminary economic
assessments are achieved; (iii) mineral resource estimates are accurate; (iv)
the technology used to develop and operate its two projects has, for the most
part, been proven and will work effectively; (v) labour and materials will be
sufficiently plentiful as to not impede the projects or add significantly to the
estimated cash costs of operations; (vi) outstanding approvals for the
completion of an acquisition, the transfer of mining rights and the approval of
mining rights will be granted; (vii) black economic empowerment ("BEE")
investors will maintain their interest in the Corporation and their investment
in the Corporation`s common shares to a sufficient level to continue to support
the Corporation`s compliance with 2014 BEE requirements; and (viii) the
innovative work on stabilizing the main shaft at the Ezulwini Mine will be
successful in maintaining a safe and uninterrupted working environment until
2024.
About First Uranium Corporation
First Uranium Corporation is focused on the development of South African uranium
and gold mines with the goal of becoming a significant producer through the re-
opening and development of the Ezulwini underground mine, and the construction
of the Buffelsfontein tailings recovery facility. First Uranium also plans to
grow production by pursuing acquisition and joint venture opportunities.
First Uranium Corporation
1240-155 University Avenue, Toronto, ON Canada M5H 3B7
www.firsturanium.com
For further information, please contact:
Bob Tait, VP Investor Relations at 416 558-3858 or bob@firsturanium.com
Date: 09/11/2007 09:01:26 Produced by the JSE SENS Department.
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