| Tue 22 Jan 2008, 8:09 | | FUM - First Uranium Corporation - First Uranium production update for the third |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium production update for the third
quarter ended december 31, 2007
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 - January 21, 2007
FIRST URANIUM PRODUCTION UPDATE FOR THE THIRD QUARTER ENDED DECEMBER 31, 2007
Toronto, Ontario - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Corporation") today announced its
production results for the fiscal quarter ended December 31, 2007 ("Q3 2008").
First Uranium began production at its tailings recovery project at Mine Waste
Solutions ("MWS") and its underground Ezulwini Mine ("Ezulwini") in June 2007
and October 2007 respectively. During the Corporation`s third quarter which
ended December 31, 2007 the Corporation processed 28,000 tonnes of underground
ore from Ezulwini and 832,000 tonnes of reclaimed tailings from MWS to produce a
total of 12,412 ounces of gold.
"Our mine plan development program entered a new phase during the quarter when
we started producing gold from Ezulwini and started up the initial long-life
tailings reclamation installation at MWS," said Gordon Miller, President and
Chief Executive Officer of First Uranium. "Both of our operations are now
mining gold and uranium and the recovery of uranium from ore is on schedule to
start at Ezulwini in June 2008 and at MWS in November 2008."
Ezulwini Mine
Production summary
Plan Actual
Ore toll-treated (tonnes) 30,000 28,000
Average recovery grade (grams/tonne) 6.3 5.6
Gold produced (ounces) 6,076 5,055
Ore stockpiled at end of period 142,504
(tonnes)
Although the build-up of production at Ezulwini during the first two months of
the quarter was negatively influenced by lower than planned grades. This was
more than offset in December, when Ezulwini`s production exceeded the planned
rate due to higher than expected grades. The gold production ramp up is
expected to continue as previously forecasted for the coming quarter.
Mine Waste Solutions tailings recovery project ("MWS")
Production Summary
Plan Actual
Tailings reclaimed (tonnes per day) 16,304 9,043
Average recovery grade (grams/tonne) 0.234 0.275
Gold produced (ounces) 11,284 7,357
Production for the quarter was negatively affected at MWS by the transition of
tailings reclamation from the depleted Stilfontein No. 2 tailings dam due to the
commissioning of the production infrastructure at the Buffelsfontein No. 2
tailings dam. The project to construct the initial long-life pump station and
10.5-kilometre pipeline was initiated in June 2007 and was originally scheduled
to be completed by the end of October 2007. The project was delayed due to late
delivery of slurry pumps and the heavy rains that fell during October that made
construction difficult. The new production facility was commissioned on
December 18, 2007 and is planned to have a production life of 18 years based on
current reserves.
The initial train of pumps located at Buffelsfontein No. 2 tailings dam is
achieving designed performance throughput, despite having a low utilization of
75% during the quarter while the second train of standby pumps was being
installed. Once the second train of standby pumps is commissioned during
February 2008, the utilization is expected to increase to 95%, which will
sustain production at or better than the planned 20,800 tonnes per day
production rate. Despite lower than planned utilization, production rates are
currently being sustained at 20,000 tonnes per day.
The initial grades mined from the Buffelsfontein No.2 tailings dam are in line
with the resource estimates for the initial mining benches and the gold plant is
achieving slightly better than planned recoveries for production from this newly
commissioned resource.
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
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. In certain
cases, forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected", scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not anticipate",
"likely", "believes" or "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, 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) 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; (ii) 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 (iii) 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 assumption
that: (i) approvals to transfer or grant, as the case may be, mining rights will
be obtained; (ii) mineral resource and reserve estimates are accurate; (iii) the
technology used to develop and operate its two projects has, for the most part,
been proven and will work effectively; (iv) that labour, materials and equipment
will be sufficiently plentiful as to not impede the projects or add
significantly to the estimated cash costs of operations; (v) that 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
(vi) that 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.
All of the forward-looking statements made in this news release are qualified by
these cautionary statements, those made in the "Risks and Uncertainties" section
of our Management`s Discussion and Analysis, and those made in the "Risk
Factors" section of our most recent Annual Information Form and other filings
with the securities regulators of Canada.
Date: 22/01/2008 08:09:01 Produced by the JSE SENS Department.
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