| Fri 22 May 2009, 14:33 | | FUM - First Uranium commences uranium production and provides production |
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FUM
FIU
FUM - First Uranium commences uranium production and provides production
update for quarter ended March 31, 2009
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 COMMENCES URANIUM PRODUCTION AND PROVIDES PRODUCTION UPDATE FOR
QUARTER ENDED MARCH 31, 2009
All amounts are in US dollars unless otherwise noted.
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced that
the commissioning of the uranium plant at the Company`s South African
underground uranium and gold mine, the Ezulwini Mine ("Ezulwini"), has been
completed and uranium production has commenced.
The Company also reported its production results for the fiscal quarter ended
March 31, 2009 ("Q4 2009"), during which the Company processed 1,693,000
tonnes of reclaimed tailings at its Mine Waste Solutions tailings recovery
project ("MWS") and milled 108,622 tonnes of gold ore from low-grade
stockpiles at Ezulwini. Gold sold during the quarter totaled 10,471 ounces at
MWS and 4,261 ounces at Ezulwini.
For the fiscal year ended March 31, 2009 ("FY 2009"), the Company processed
6,995,000 tonnes of reclaimed tailings at MWS and milled 232,715 tonnes of ore
at Ezulwini. Gold sold during FY 2009 totaled 42,857 ounces at MWS and 10,796
ounces at Ezulwini. Comparative production and sales results at MWS for FY
2009 are compared to those for the fiscal year ending March 31, 2008 ("FY
2008") in the following table. There was no commercial production at Ezulwini
in FY 2008.
Quarterly Production Results
Q1 2009 Q2 2009 Q3 2009 Q4 2009 FY 2009 FY 2008
MWS
Tonnes of ore 1,665 1,839 1,798 1,693 6,995 4,053
reclaimed (000s)
Average gold .16 .20 .21 .19 .19 .22
recovered grade
(g/t)
Gold reclaimed 8,530 11,821 12,235 10,513 43,099 28,192
(oz)
Gold sold (oz) 7,741 12,118 12,581 10,471 42,857 28,094
Ezulwini
Tonnes of ore 24,238 42,465 30,892 29,039 126,634 46,620
hoisted
Tonnes of ore - 44,014 80,079 108,622 232,715 -
milled
Gold sold (oz) - 124 6,411 4,267 10,802 5,055
Note: At Ezulwini, in FY 2008 all the ore was toll-treated at a gold plant at
a neighbouring mine.
As previously announced, in the three-month period ending December 31, 2008
("Q3 2009") the Company decided to allocate the majority of the mine access
time at Ezulwini to the completion of the shaft rehabilitation work. The
shaft rehabilitation project has gone according to plan, no longer interferes
with the development of the mine and the extraction of ore and allows for the
hoist to operate at the optimal speed for the current production profile. The
extraction sequence for de-stressing the shaft pillar is proceeding according
to the desired design specifications.
Following the completion of the shaft rehabilitation work, the amount of
tonnes hoisted at Ezulwini began to increase compared to Q3 2009 due to
increased mining activity. In Q4 2009, Ezulwini sold 4,267 ounces of gold,
contributing to the total gold sold by the Company during FY 2009 of 10,802
ounces compared to a plan of 19,001 ounces. The lower gold sales were
primarily due to the decreased mining activity and the processing of the low-
grade surface stockpile at Ezulwini, while the shaft rehabilitation work was
being completed.
At MWS, decreased throughput, grade and recovery during Q4 2009 were primarily
due to a lower feed grade and higher clay content, combined with intermittent
work stoppages due to unusually severe thunderstorms during the recently ended
rainy season. The MWS gold sold in FY2009 was 42,857 ounces compared to plan
of 45,461 ounces.
Gordon Miller, President and CEO of First Uranium commented, "We are now a
member of a select group of companies that are producing uranium and among an
even smaller group of uranium miners that are so far unencumbered by contracts
or partnerships with nuclear utilities or government agencies. Although we
have experienced some start-up delays in commissioning our operations, I
continue to be impressed by what the First Uranium team has been able to
achieve in a very short time; producing gold at both operations and our
initial uranium production at Ezulwini."
In mid-June 2009 First Uranium expects to announce its annual audited
financial results for its fiscal year ended March 31, 2009, which will include
an update on plant construction at both operations.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of
becoming a significant low-cost producer of uranium and gold through the
expansion of the underground development to feed the new uranium and gold
plants at the Ezulwini Mine and through the expansion of the plant capacity of
the Mine Waste Solutions tailings recovery facility, both in South Africa.
First Uranium also plans to grow production by pursuing value-enhancing
acquisition and joint venture opportunities in South Africa and elsewhere.
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 416 342-5639 (office), 416 558-3858 (mobile) or bob@firsturanium.ca
Cautionary Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking information based on
current expectations. All other statements other than statements of
historical fact included in this release including, without limitation,
statements regarding processing and development plans and future plans and
objectives of First Uranium are forward-looking statements (or forward-looking
information) that involve various risks and uncertainties. These forward-
looking statements are made as of the date hereof and there can be no
assurance that such statements will prove to be accurate, such statements are
subject to significant risks and uncertainties, and 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 that are included herein, except in accordance with applicable
securities laws.
22 May 2009
Sponsor: Investec Bank Limited
Date: 22/05/2009 14:33:01 Produced by the JSE SENS Department.
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