| Fri 9 Nov 2007, 16:06 | | SIM - Simmer`s First Uranium Receives Conditional |
|
SIM
SIIF
SIM - Simmer`s First Uranium Receives Conditional Approval Of Prosepcting
Right For Ezulwini Mine
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM ISIN Code: ZAE000006722
("Simmers" or "the Company")
News release
Issued by Simmer & Jack
8 November 2008
SIMMER`S FIRST URANIUM RECEIVES CONDITIONAL APPROVAL OF PROSEPCTING RIGHT FOR
EZULWINI MINE
Johannesburg - Simmer & Jack Mines, Limited (Simmers) is pleased to announce
that its 65.47% held subsidiary, First Uranium Corporation (TSX:FIU, JSE:FUM)
has been granted conditional approval for an application in respect of a
Prospecting Work Programme (the Programme) on properties contiguous to the
north-east and south-east of its Ezulwini Mine near Westonaria. The Ezulwini
Mine is an underground uranium and gold mining project, with mining rights
covering an area of 3 717 hectares. The new prospecting right covers 6 843
hectares of property and is known to contain uranium and gold mineralization
adjacent to the Ezulwini mining rights. The application has been granted by the
Department of Mineral and Energy (DME) subject to the approval of the
Environmental Management Plan for the exploration drilling from surface. This is
expected to take place on or before 11 December 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 Programme. Based on the results of the
historical drill data, First Uranium plans to immediately proceed with the
Programme 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 Programme 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
Programme 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. Detailed maps showing the locality, prospecting area and the location of
11 historical bore holes drilled in the prospecting rights area on which gold
and uranium payshoots were defined as well as the three Cooke shafts on the
property adjacent to the western boundary of Ezulwini, are available on the
company`s website - www.firsturanium.com.
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 cross-section of the historical target area, including the layer of dolomites
which overlay much of the mineralized reefs in the Witwatersrand Basin can also
be viewed on the First Uranium website.
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 Programme 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 Programme fits with First Uranium`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, Simmers CEO
and First Uranium`s President and Chief Executive Officer. "It has set aside
US$10 million for this exploration programme, 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. First Uranium 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 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 to
the Ezulwini Expansion Programme, 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 programme on the Ezulwini Mine property on 9
November 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 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 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. Forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of
Simmer & Jack Mines, Limited and or its subsidiaries to be materially different
from any future results, performance or achievement expressed or implied by the
forward-looking statements. Actual results may differ materially from the
Company`s expectations if known and unknown risks or uncertainties affect its
business, or if estimates or assumptions prove inaccurate. The Company cannot
guarantee that any forward-looking statement will materialize and, accordingly,
readers are cautioned not to place undue reliance on these forward-looking
statements. The Company 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.
About Simmer and Jack Mines, Limited
Simmer & Jack Mines, Limited ("Simmers") is a gold and uranium company with a
diverse range of projects encompassing deep level pillar mining, shallow, low-
cost mining and surface operations. A development company with the aim of
becoming a tier one, low-cost gold and uranium producer, Simmers` focus is on
sustainable expansion through the organic growth of its large resource base,
coupled with a targeted exploration programme.
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 Mine, and the construction of the
Buffelsfontein Tailings Recovery Project. First Uranium also plans to grow
production by pursuing acquisition and joint venture opportunities.
Contacts:
Simmer and Jack Mines Limited First Uranium Corporation
5 Press Avenue, 1240-155 University Avenue
Selby, South Africa, 2025 Toronto, ON Canada M5H 3B7
www.simmers.co.za www.firsturanium.com
Gail Strauss Bob Tait
Group Communications VP Investor Relations
+27 11 830 0390 or 084 777 4060 + 416 558-3858
gail@simmers.co.za bob@firsturanium.com
9 November 2007
Sponsor: Sasfin Corporate Finance
Date: 09/11/2007 16:06:49 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
