| Thu 31 Jan 2008, 8:12 | | FUM - First Uranium Regains Permission To Use 80% Of Its Near-Term Power |
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FUM
FIU
FUM - First Uranium Regains Permission To Use 80% Of Its Near-Term Power
Requirements
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 30, 2008
FIRST URANIUM REGAINS PERMISSION TO USE 80% OF ITS NEAR-TERM POWER REQUIREMENTS
Toronto, Ontario and Johannesburg, South Africa - (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") was today advised by
Eskom, South Africa's national power utility that, effective immediately, energy
usage at all mining operations could be resumed to a maximum of 80% of their
average power load requirements. The restriction, imposed as part of the
current phase of dealing with the national energy crisis which began on January
25, is expected to be relaxed to allow use of 90% of the Company's power load
requirements on Thursday, January 31, 2008. To ensure the continued safety of
our miners, operating activities will be gradually ramped up to the permitted
levels.
The Company's Ezulwini Mine, an underground uranium and gold mine, is the only
First Uranium operation impacted as a result of this phase of the power crisis.
Given its relatively low power requirements, the tailings recovery operation at
Mine Waste Solutions ("formerly Buffelsfontein Tailings Recovery Project) have
been unaffected by the power cuts.
At the Ezulwini Mine, which is in a relatively early stage of development,
normal weekly operations are comprised of three days of mining and four days of
shaft rehabilitation. In the interests of health and safety, the Company
temporarily suspended mining operations.
First Uranium estimates that during the quarter, every day of operations being
shut down would result in the loss of approximately 888 tonnes of ore processed
or approximately 170 ounces of gold production. Thus far, only three days of
production have been lost. Rehabilitation of the Ezulwini Mine shaft has not
been interrupted. The Company believes that this lost production can be made up
once the shaft rehabilitation work is complete.
The neighbouring third-party plant that toll-mills gold ore for First Uranium
has suspended toll milling for the Ezulwini Mine as a result of its energy usage
restrictions, and it is not clear when this will resume, if at all. Should the
toll-milling plant's energy reduction plan cause toll milling to be suspended
indefinitely, the Ezulwini Mine would stockpile ore until its own gold plant is
commissioned in April 2008.
About First Uranium Corporation
First Uranium 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 document may contain or refer to forward-looking information based on
current expectations. Forward-looking statements are subject to significant
risks and uncertainties, and other factors that could cause actual results to
differ materially from expected results. These forward-looking statements are
made as of the date hereof and we assume no responsibility to update or revise
them to reflect new events or circumstances.
Date: 31/01/2008 08:12:36 Produced by the JSE SENS Department.
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