| Thu 21 Feb 2008, 15:25 | | UUU - Uranium One Announces New Senior Management Appointments, |
|
UUU
UUU
UUU - Uranium One Announces New Senior Management Appointments,
Revised Production Guidance and Updated Resource Estimate at Dominion
Uranium One Inc
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: UUU & ISIN: CA91701P1053
Share code on the TSX: UUU & ISIN: CA91701P1053
February 21, 2008
Uranium One Announces New Senior Management Appointments, Revised Production
Guidance and Updated Resource Estimate at Dominion
Toronto, Ontario and Johannesburg, South Africa - Uranium One Inc. ("Uranium
One") today announced new senior management appointments effective
immediately and revised U3O8 production guidance, as well as an updated
resource estimate at the Dominion property.
New Senior Management Appointments
Jean Nortier, Executive Vice President, Business Development, has been
appointed interim Chief Executive Officer. Mr. Nortier, who served as the
Company`s Chief Financial Officer prior to April 2007, succeeds Neal
Froneman, who has tendered his resignation with effect from today. Mr.
Froneman will continue as CEO and director of Aflease Gold Limited.
David Hodgson, a non-executive director of the Company, has been appointed
acting Chief Operating Officer. Mr. Hodgson is a qualified civil and mining
engineer who joined the Board of Uranium One in 2006 following a
distinguished 30 year career in the mining industry. He has had extensive
operational experience both in South Africa and internationally, including as
Chief Operating Officer of AngloGold Ashanti where he was responsible for 22
mining operations around the world.
Ian Telfer, Chairman of Uranium One, commented - "I look forward to working
with Jean as he leads the Company through the next stage in its development.
I am grateful to David for taking on the role of acting COO and I know the
Company will benefit from his operational and technical expertise,
particularly at Dominion. On behalf of the Board, I would also like to
extend our appreciation to Neal Froneman for his contributions to the Company
over the past five years."
2007 Production
Attributable production from the Company`s Kazakhstan and South African
operations in 2007 totalled 2,037,800 pounds of U3O8, comprising 1,827,200
pounds U3O8 from Akdala, 171,000 pounds U3O8 from Dominion and 39,600 pounds
U3O8 from South Inkai.
Revised Production Guidance: 2008 - 2009
Production guidance for 2008 has been revised downwards from previously
published guidance by 32% to 3.15 million pounds of U3O8, detailed as
follows:
Operation 2008 Attributable Production Guidance
(lbs of U3O8)
Akdala 1,800,000
Dominion 590,000
South Inkai 500,000
Kharasan 220,000
Honeymoon 0
Hobson 35,000
Total 3,145,000
For 2009, production guidance has been revised downwards by 15% from
previously published guidance to 6.8 million pounds of U3O8.
The revisions to the Company`s anticipated production result primarily from
slower than expected rates of underground development at Dominion.
Development has been adversely affected by a number of factors, including
disruption in electrical power supply and equipment breakdowns. Production
for the 2008 year was also impacted by higher than expected leaching of near-
surface uranium resources, higher than expected mining dilution and lower
than expected grade for the surface tailings material currently being
processed through the plant.
While feed constraints are dictating a slower ramp-up to full production
originally projected, the resource base remains robust as detailed below and
in the Appendix attached hereto.
Dominion Update
Underground mining, and associated close-spaced sampling, has been undertaken
at the Rietkuil section of the mine to allow for quantitative reconciliations
between in-situ grades currently being mined and grades from the resource
estimation based on exploration drilling. This reconciliation has indicated
that in-situ grades encountered underground closely approximate the forecast
from the exploration model. At Dominion, there has not been sufficient
sampling below the leached area to complete a quantitative reconciliation to
the existing resource models.
The commissioning of the pressure leach circuit at the plant was completed in
December 2007. Due to the slower than expected rate of underground
development, ore and tailings material are currently being processed through
one autoclave, and the other autoclave is on standby. An additional 40
tonne/hour boiler is scheduled to be commissioned in September 2008, to allow
both autoclaves to be operated together at design capacity and also to
facilitate expansion. A combination of both ore and tailings material will
continue to be treated in 2008 and 2009; plant recoveries are expected to
increase as underground ore displaces tailings material. Current plant
performance is in line with expectations.
Since November 2007, Dominion has been subject to electrical load shedding
arising from the current South African electrical power crisis. Diesel
generators have been ordered to ensure back-up power for underground
development is available during periods of load shedding. Additional
trackless equipment has been purchased to ensure planned development is
achieved.
Updated Dominion Resource Estimate
The updated mineral resource estimate shows indicated resources of 81.1
million tonnes at a grade of 0.63 kg/tonne, containing 112.4 million pounds
of U3O8. This includes the current Dominion Phase 1 section (including the
existing Dominion 1 and 2 and Rietkuil declines) and represents a 73%
increase in contained U3O8 in the indicated category from the indicated
resource estimated in January 2007 (36.4 million tonnes at a grade of 0.81
kg/tonne, containing 64.9 million pounds of U3O8) as reported by SRK
Consulting in its March 2007 independent technical report (available at
www.sedar.com).
Compared to the January 2007 resource estimate, which focused primarily on
higher grade ore-shoots or channels, the current indicated resources consider
both higher grade ore-shoots, as well as lower grade inter-channel areas. In
addition, the channels intersected in both the Dominion strike extension
areas and the Rietkuil down-dip extensions comprise thicker reef packages
relative to those intersected in the current decline areas. As a result,
total uranium content across total reef widths is similar; however,
associated U3O8 and gold grades of the indicated resources decrease.
Inferred uranium resources are now 174.8 million tonnes at a grade of 0.36
kg/tonne, containing 138.4 million pounds of U3O8. This represents a 25%
decrease in contained U3O8 in the inferred category from the inferred
resource estimated in January 2007 (219.4 million tonnes at a grade of 0.38
kg/tonne, containing 183.6 million pounds of U3O8) as more of the resource is
converted to a higher category.
Indicated gold resources are now 81.1 million tonnes at a grade of 0.76
g/tonne, containing 1.99 million ounces, compared to January 2007 indicated
gold resources of 36.4 million tonnes at a grade of 0.91 g/tonne, containing
1.06 million ounces (an 88% increase). Inferred gold resources are now 174.8
million tonnes at a grade of 0.63 g/tonne, containing 3.5 million ounces,
compared to January 2007 indicated gold resources of 219.4 million tonnes
grading 0.67 g/tonne, containing 4.8 million ounces (a 27% decrease).
In addition to the underground resources, the updated mineral resource
estimate shows an indicated resource for surface tailings material of 2.95
million tonnes at a grade of 0.14 kg/tonne U3O8 and 0.52 g/tonne gold,
containing 0.9 million pounds of U3O8 and 49,700 ounces of gold,
respectively. This represents a minor decrease in the January 2007 mineral
resource as a result of depletion from the mining and processing of this
material to December 31, 2007.
The revised resource estimate for the Dominion property has been audited by
SRK Consulting and will be contained in an independent technical report being
prepared by SRK for filing in accordance with the requirements of NI 43-101.
Further details of the updated mineral resource statement are set out in
Appendix A attached hereto.
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. In the United States, Uranium One has extensive
property holdings in Wyoming, Texas, Utah and New Mexico, including the
Shootaring Canyon Mill and the Hobson ISR facility. Uranium One is also
engaged in uranium exploration activities in the United States, the Athabasca
Basin of Saskatchewan, South Africa, Australia and the Kyrgyz Republic.
For further information, please contact:
Jean Nortier Chris Sattler
Interim 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 and in Appendix A
attached hereto (and which forms part hereof).
Forward-looking statements: This press release and Appendix A contain 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, the Annual Information Form of UrAsia
Energy Ltd. for the year ended July 31, 2006 and in the Annual Information
Form of Energy Metals Corporation for the year ended June 30, 2006, each of
which are 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.
In addition, this news release and Appendix A use the terms "indicated
resources" and "inferred resources" as defined in accordance with the SAMREC
Code (South African Code for Reporting of Mineral Resources and Mineral
Reserves prepared by the South African Mineral Resource Committee) ("SAMREC")
under the auspices of the South African Institute of Mining and Metallurgy
effective March 2000 or as amended from time to time. A mineral resource is a
concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the earth`s crust in such form and quantity and of
such a grade or quality that it has reasonable prospects for economic
extraction. The location, quantity, grade, geological characteristics and
continuity of a mineral resource are known, estimated or interpreted from
specific geological evidence and knowledge. A measured mineral resource is
that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a level
of confidence sufficient to allow the appropriate application of technical
and economic parameters to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drillholes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part
of a mineral resource for which quantity, grade or quality, densities, shape
and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration
and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes that are
spaced closely enough for geological and grade continuity to be reasonably
assumed. An inferred mineral resource is that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on limited
exploration and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes. Mineral
resources which are not mineral reserves do not have demonstrated economic
viability.
The indicated and inferred resource estimates provided herein and Appendix A
in accordance with SAMREC will be reconciled to the guidelines set out in the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Mineral Reserves, adopted by CIM Council on August 20,
2000, as may be amended from time to time by the CIM, in accordance with
National Instrument 43-1 01 - Standards of Disclosure for Mineral Projects,
("NI 43-101") in the technical report being prepared for filing in accordance
with the requirements of NI 43-101.
For the purposes of NI 43-101, Mr. M.H.G. Heyns, Pr.SCI.Nat. (SACNASP),
MSAIMM, MGSSA, Senior Vice President of Uranium One Inc., is the qualified
person who prepared or supervised the preparation of the information that
forms the basis of the scientific and technical disclosure contained in this
press release and Appendix A.
Investors are cautioned not to assume that all or any part of the mineral
deposits in the measured and indicated resource categories will ever be
converted into reserves. In addition, "inferred resources" have a great
amount of uncertainty as to their existence and economic and legal
feasibility. It cannot be assumed that all or any part of an Inferred mineral
resource will be ever be upgraded to a higher category. Under South African
rules, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies or economic studies except under
conditions noted in SAMREC. Under Canadian rules, estimates of Inferred
mineral resources may not form the basis of feasibility or pre-feasibility
studies or economic studies except for preliminary assessments as defined
under NI 43-101. Investors are cautioned not to assume that all or any part
of an Inferred resource exists or is economically or legally mineable.
For further information about Uranium One, please visit www.uranium1.com
Date: 21/02/2008 15:25:01 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.
