| Thu 9 Jul 2009, 14:15 | | UUU - Uranium One Announces Record Quarterly Production and Significant |
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UUU
UUU
UUU - Uranium One Announces Record Quarterly Production and Significant
Increase in South Inkai Resources
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
NEWS RELEASE
July 9, 2009
Uranium One Announces Record Quarterly Production and Significant Increase in
South Inkai Resources
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
today announced record production results from its operations in Kazakhstan
during the second quarter of 2009, as well as an updated NI 43-101 compliant
resource estimate for the South Inkai Uranium Mine which shows a significant
increase over the previous resource estimate.
Production and Sales
During the second quarter of 2009, the Company`s operations achieved record
quarterly attributable production of 833,900 pounds U3O8. This represents an
18% increase over attributable production during the first quarter of 2009 of
708,500 pounds U3O8.
Table 1 - Uranium One Attributable Production (U3O8 pounds)
Q2 2009 Q1 2009
Akdala 438,800 445,800
South Inkai 376,800 245,100
Kharasan 18,300 7,600
Total 833,900 708,500
In line with the Company`s scheduled deliveries under long-term contracts,
attributable sales volumes during the second quarter of 2009 were 385,000
pounds U3O8. Uranium One`s attributable sales volumes during the six months
ending June 30, 2009 were 1,265,600 pounds U3O8.
Operations
Akdala Uranium Mine
Year to date production from Akdala remains in line with expectations. During
the second quarter, the concentration of uranium in solution averaged
approximately 81 mg per litre and the average flow rate from the well fields
was approximately 1,385 cubic metres per hour.
The well installation program for 2009 commenced on schedule during the second
quarter, with 58 wells completed by the end of June. The program provides for
the installation of 164 wells to achieve the production targets for the year.
South Inkai Uranium Mine
The ramp-up in production at South Inkai continues to be in line with
expectations. Blocks 5, 6 and 7 are now in production. During the second
quarter, the concentration of uranium in solution averaged approximately 96 mg
per litre and the average flow rate from the well fields was approximately
1,000 cubic metres per hour.
As at June 30, 2009, 134 of the 343 wells scheduled to be installed this year
had been completed. Commissioning of the drying circuit is expected to be
completed by the end of 2009. The drying circuit at South Inkai has been
designed to have sufficient capacity to treat both Akdala and South Inkai
production. Once operational, the circuit will eliminate the need to use
external processing facilities for drying and calcining.
Kharasan Uranium Project
Pre-commercial production from Kharasan remained below expectations during the
second quarter. Under the leadership of a new management team, project staff
is continuing to address the factors contributing to well field
underperformance. Actions being taken include installing new wells in
existing well fields, as well as re-working some of the existing wells to
improve flow rates. Additional flow meters and more powerful pumps have been
installed to improve well field operations.
The average concentration of uranium in solution from the well fields improved
during the second quarter to 51 mg per litre, compared to an average of 32 mg
per litre during the first quarter. The average flow rate during the second
quarter was approximately 213 cubic metres per hour, compared to an average of
156 cubic metres per hour during the first quarter. As at June 30, 2009, 104
of the 270 wells scheduled to be installed this year had been completed.
South Inkai Uranium Mine Updated Resource Estimate
Hellman & Schofield Pty. Ltd. has provided the Company with an updated NI 43-
101 compliant mineral resource estimate for South Inkai as at December 31,
2008. This estimate is based on the extensive drilling campaign completed in
support of South Inkai`s 2008 industrial production approval application.
The new resource estimate includes a significant conversion to indicated
resources of resources which were previously reported as inferred. Highlights
of the new resource estimate include:
- total indicated resources of 34.1 million tonnes at a U3O8 grade of
0.053%, containing 39.6 million pounds U3O8 (27.7 million pounds
attributable to Uranium One)
- total inferred resources of 42.8 million tonnes at a U3O8 grade of
0.047%, containing 44.4 million pounds U3O8 (31.1 million pounds
attributable to Uranium One)
The previously reported mineral resource estimate dated October 2, 2006 was
57.7 million tonnes grading 0.048% U3O8, containing 62.0 million pounds U3O8
in the inferred category (43.4 million pounds attributable to Uranium One).
Additional details of the updated resource estimate can be found in Appendix
"A" attached hereto.
Pending Transactions
Uranium One and JSC Atomredmetzoloto have filed applications for all
regulatory approvals required in connection with the Karatau purchase
agreement previously announced on June 14, 2009, including a joint application
for required Kazakh government approvals. Completion of the Karatau
acquisition, as well as the previously announced $270 million private
placement by a consortium comprising the Tokyo Electric Power Company, Toshiba
Corporation and the Japan Bank for International Cooperation, will take place
later this year following receipt of all required regulatory approvals.
For further information, please contact:
Jean Nortier
Chief Executive Officer
Tel: + 1 604 601 5642
Chris Sattler
Executive Vice President, Corporate Development and Investor Relations
Tel: + 1 416 350 3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Investors are advised to refer to independent technical reports containing
detailed information with respect to the material properties of Uranium One.
These technical reports are available under the profiles of Uranium One Inc.,
UrAsia Energy Ltd., and Energy Metals Corporation at www.sedar.com. Those
technical reports provide the date of each resource or reserve estimate,
details of the key assumptions, methods and parameters used in the estimates,
details of quality and grade or quality of each resource or reserve and a
general discussion of the extent to which the estimate may be materially
affected by any known environmental, permitting, legal, taxation, socio-
political, marketing, or other relevant issues. The technical reports also
provide information with respect to data verification in the estimation.
This document uses the terms "indicated" and "inferred" resources as defined
in accordance with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects. United States investors are advised that while these terms
are recognized and required by Canadian regulations, the SEC does not
recognize them. Investors are cautioned not to assume that all or any part of
the mineral deposits in these 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 and it cannot be assumed
that all or any part of an inferred mineral resource will be ever be upgraded
to a higher category. Investors are cautioned not to assume that all or any
part of an inferred resource exists or is economically or legally mineable.
Mineral resources are not mineral reserves and do not have demonstrated
economic viability.
Scientific and technical information contained herein concerning the resource
estimate at South Inkai has been reviewed on behalf of Uranium One by Mr.
Simon Gatehouse, B.Sc. (Hons) Geology, MAIG, Consulting Geologist of Hellman &
Schofield Pty. Ltd., a Qualified Person for the purposes of NI 43-101.
Scientific and technical information contained herein concerning the
production results from Akdala, South Inkai and Kharasan has been reviewed on
behalf of Uranium One by Mr. M.H.G. Heyns, Pr. SCI.Nat. (SACNASP), MSAIMM,
MGSSA, Senior Vice President of Uranium One Inc., a Qualified Person for the
purposes of NI 43-101.
Forward-looking statements: This press release contains certain forward-
looking statements. Forward-looking statements include but are not limited to
those with respect to the price of uranium, 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 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, 2008, which is 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.
For further information about Uranium One, please visit uranium1.com.
Appendix A
Uranium One has received an updated resource estimate, as of December 31,
2008, from Hellman & Schofield Pty. Ltd. ("H&S") for the South Inkai Uranium
Mine.
The estimate shows that Indicated Resources total 34.1 million tonnes at a
grade of 0.053% U3O8, containing 39.6 million pounds U3O8, and Inferred
Resources total 42.8 million tonnes at a grade of 0.047% U3O8, containing 44.4
million pounds U3O8.
The independent verification of the resource estimate reported in Table 2
below used the ordinary block kriging method and is based on production and
exploration information for the South Inkai Site 4, comprising reserve blocks
4-6-C1 to 4-20-C1, and representing 75% of the area underlain by C1 Reserves
submitted to the Yuzhkaznedra Territorial Department and Ministry of Energy
and Mineral Resources of the Republic of Kazakhstan, the State Committee of
Minerals Resources ("SCMR") in September, 2008. There are 86 holes drilled
for C2 reserves and 352 holes drilled for the purposes of upgrading C2 to C1
reserves in the check area. Drill fences for C1 reserves are 200m apart, with
holes spaced at 50m to 100m. Drill fences for C2 reserves are 800m apart,
with holes spaced at 50m to 100m. Based on this information, H&S is of the
opinion that all reserves estimated at the C1 and C2 Reserve confidence
categories under Russian estimation protocols at South Inkai can be considered
equivalent to CIM Indicated and Inferred resources, respectively.
Primary down-hole radiometric data provided by Betpak Dala and Uranium One
enabled H&S to confirm the probe data against core sample assays and to do a
check estimation on the resources using ordinary block kriging ("OK"). The OK
technique used by H&S differs in general from the polygonal grade-thickness
("GT") methods traditionally applied in the past in that it gives estimates
that are lower in grade and higher in tonnages, and contain more metal than a
GT estimate done in the same rock volume.
Summary parameter information used to estimate the resources:
- radiometric data composited to 0.5m
- radium ("Ra") from probe measurement adjusted to U% by applying
disequilibrium factor of approximately 1.02
- rotation of the grid by 42 degrees anticlockwise
- estimation into blocks of 100m W, 25m N and 1m depth (rotated grid)
- data search radii of 290m W, 72m N and 1.3m depth for Indicated Resources
- a minimum of 16 data points within search radius for Indicated Resources
Resources have been reported above a uranium cut-off grade of 0.01%.
Table 2 - South Inkai Mineral Resource Estimate (December 31, 2008)(1,2,3,4)
Resource Deposit Totals Company Share
Category
Tonnes Grade Contained Ownership Contained
(000`s) (% U3O8) U3O8 (%) U3O8
(M lbs) (M lbs)
Indicated
Resources
Deposit No. 4 34,064 0.053% 39.6 70% 27.7
Inferred
Resources
Deposit No. 3 15,545 0.049% 17.1 70% 11.9
Deposit No. 4 27,300 0.046% 27.4 70% 19.1
Sub-Total 42,845 0.047% 44.4 70% 31.1
Inferred
Notes:
1. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
2. The Mineral Resources were confirmed by Mr. Simon Gatehouse (the
"QP") on the basis of a detailed check estimate of a significant
portion of the South Inkai deposit and reported to a uranium cut-off
grade of 0.01%.
3. Mineral resources are estimated using current geological models and
interpretations as verified by the QP.
4. Totals may not add due to rounding.
Mr. Simon Gatehouse, Consulting Geologist of Hellman & Schofield Pty. Ltd. is
the Qualified Person ("QP") for the purposes of NI 43-101 for the South Inkai
Uranium Mine. In addition to the preparation of the updated resource
estimate, Mr. Gatehouse also completed or has overseen the following:
- Verification of the electronic data, including chemical assays,
radiometric and geophysical data, lithological data, holes and
interval locations
- Verification of the data used for the resource estimate (down-hole
radiometric probe data confirmed against core sample assays)
- Underlying geological modeling
The updated resource estimate for the South Inkai Uranium Mine will be
contained in an independent technical report being prepared by Hellman &
Schofield Pty. Ltd. for filing in accordance with the requirements of NI 43-
101.
Date: 09/07/2009 14:15:01 Produced by the JSE SENS Department.
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