| Mon 17 Aug 2009, 7:36 | | FUM - First Uranium Corporation - First Uranium Reports Production Update |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium Reports Production Update
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 - August 14, 2009
FIRST URANIUM RAMPING UP PRODUCTION OF BOTH URANIUM AND GOLD; PROVIDES
GUIDANCE FOR THE REMAINDER OF THE YEAR
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
during the quarter ended June 30, 2009 ("Q1 2010") the Company produced 3,791
ounces of gold from the Ezulwini Mine and 11,007 ounces of gold from the Mine
Waste Solutions tailings recovery project ("MWS"). During the quarter, the
Company also achieved a major milestone and produced its first batch of
uranium in the form of "yellowcake" (ammonium diuranate).
"First Uranium joined a small and exclusive group of uranium producers this
past quarter. The Company has commissioned its first uranium plant and is
well positioned to fulfill its vision to be a long-term, low-cost producer of
both uranium and gold," commented Gordon Miller, President and CEO of First
Uranium. "Our focus continues to be on both increasing production at the
operations and on strengthening the Company`s financial position, while
simultaneously managing risk and optimizing margins for our shareholders,
ensuring that our significant production ramp up plans are met."
Milestones achieved at the Ezulwini Mine during the last quarter include:
- the completion of significant underground work to further access the ore
bodies. More specifically, new production stopes as at the end of Q1
2010 can be defined as follows:
- The workable face length in the Upper Elsburg ("UE") gold-only ore
body was 369 metres at a grade of 4.66 grams per tonne, inclusive
of the low grade de-stress mining cut, which is scheduled for
completion in October;
- The workable face length for the Middle Elsburg ("ME") co-product
gold and uranium ore body was 408 metres at a gold grade of 2.95
grams per tonne and a uranium grade of .049 percent.
- the de-stress cuts required to open up mining of the high-grade ore in
the shaft pillar of the UE ore body have proceeded as planned and are
expected to be completed in Q3 2010;
- the gold plant is working to design specifications;
- production at the recently commissioned uranium plant is being
optimized; and
- the first dispatch of yellowcake was delivered to the local calcining
plant prior to being shipped for conversion and ultimate sale to a
nuclear power utility.
At MWS, commissioning of a second gold plant module has begun and once fully
commissioned, is expected to more than double MWS low-cost gold production
from 43,100 ounces to approximately 100,000 ounces per annum.
During the most recently completed quarter, management made several strategic
decisions regarding the third gold and uranium plant modules resulting in a
more efficient capital investment program and optimized cash flow profile.
The new plan requires an immediate start to the construction of the third
gold plant module as well as the third stream of the uranium flotation plant,
which will be used to optimize uranium grades delivered to the uranium plant.
Inception of the third stream of the uranium flotation plant is expected to
ensure that the planned life of mine gold production will be realized in all
material respects.
Plans for construction and commissioning of the third gold plant module and
the third stream of the uranium flotation plant at MWS have been finalized,
the long-lead items have been ordered, major supplier contracts have been
entered into and construction is underway, which has locked in costs and
significantly reduced the potential for cost volatility in the Company`s
capital expenditure program.
Construction of the third gold plant module and third stream of the uranium
flotation plant has commenced and is proceeding on schedule for completion by
June 2010.
The following table summarizes the production from each operation during the
quarter. Production from the four quarters of the previous fiscal year
ended March 31, 2009 has been included for comparison purposes.
Quarterly Production Results
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
MWS
Tonnes of ore reclaimed 1,665 1,839 1,798 1,693 1,835
(000s)
Average gold head grade 0.37 0.41 0.42 0.41 0.42
(g/t)
Gold plant recovery (%) 43% 49% 50% 47% 44%
Gold reclaimed (oz) 8,530 11,821 12,235 10,513 11,007
Gold sold (oz) 7,741 12,118 12,581 10,417 10,676
Ezulwini
Total tonnes of ore milled - 44,014 80,079 108,622 92,468
Gold produced (oz) - 124 6,411 4,267 3,791
Gold sold (oz) - 124 6,411 4,267 3,379
Outlook - Ezulwini Mine
At the Ezulwini Mine, the key elements that will drive the planned increases
in gold and uranium production include:
- the de-stress cuts required to open up mining of the high-grade ore in
the shaft pillar of the UE ore body, which is scheduled for completion
in Q3 2010; and
- the creation of workable face length with grades of gold and uranium
that are at or above the economic cut off of the ore mined.
The underground development of mining faces at economical grades of uranium
and gold are the key to the success of the operation. First Uranium has,
with this news release, introduced new forecast metrics of face length,
anticipated blasted face grade and kilograms per face length metre to help
investors understand the expected acceleration of underground mine
development (metrics that will now be regularly supplied in subsequent
production updates).
Ezulwini Mine: Underground Production Forecast
Q1 2010 Q2 2010 Q3 2010 Q4 2010
Actual Forecast Forecast Forecast
Upper Elsburg Mining Activity
Metres of mining face 369 600 1,000 1,700
Blasted face grade - gold (g/t) 4.66 6.71 6.79 7.53
Middle Elsburg Mining Activity
Metres of mining face 408 575 1,050 1,500
Blasted face grade - gold (g/t) 2.95 2.74 3.27 3.53
Blasted face grade - uranium (g/t) 480 500 560 610
Facelength ("FL") Buildup
Gold (kg/m of FL blasted) 15 24 45 76
Uranium (kg/m of FL blasted) 1,077 1,206 2,607 4,232
Mill Production (combined)
Tonnes of ore milled (000s) 92 145 215 293
Notes:
1. Face-length buildup is a metric to indicate the content of gold and
uranium produced for a horizontal metre of blasted facelength.
2. The current mining rate is not expected to immediately fill the uranium
and gold plants that have production capacities of 100,000 tonnes per month
and 200,000 tonnes per month, respectively.
3. A minimum three-month delay is expected between uranium production and
sales, allowing time for calcining, shipment and conversion.
4. Q1 and Q2 grades for the upper Elsburg ore body include grade dilution
from the low-grade shaft pillar de-stress cut which is scheduled for
completion in October 2009.
5. The anticipated increase in stope grades has been determined on the basis
of current in situ sampling of reef development and sampling of new stopes
that are being opened up.
Outlook - MWS
At MWS, management estimates that the second gold plant module, known as the
phase 1B expansion, is expected to produce gold - as per design specification
- by the end of Q2 2010.
The first two uranium plant modules, which also form part of the phase 1B
expansion project, are expected to be completed and producing at design
specification before the end of Q3 2010. For the final phase of construction,
management has decided to delay portions of the third uranium plant module
until such time that higher uranium prices are expected to occur.
MWS: Tailings Recovery and Production Forecast
Q1 2010 Q2 2010 Q3 2010 Q4 2010
Actual Forecast Forecast Forecast
Tonnes of ore reclaimed (000s) 1,835 3,200 3,900 3,900
Average gold head grade (g/t) 0.42 0.40 0.41 0.40
Gold plant recovery (%) 44% 50% 54% 58%
Gold reclaimed and sold (oz) 10,676 18,000 28,500 28,500
Tonnes of uranium ore reclaimed - - 370 370
(000s)
Average uranium concentrate grade 368 368
feeding the plant(g/t)
Uranium plant recovery (%) - - 75% 75%
Uranium reclaimed (lb) - - 225,000 225,000
Notes:
1. The increase in gold recoveries is possible through the introduction
of gold concentrates into the uranium plant where exposure of material to
an acidic environment liberates additional gold that would otherwise not
be available for cyanidation.
2. The average uranium concentrate grade is a derived number as the plant
feed is expected to be ore from a variety of sources, only some of which
will be concentrated in the flotation process.
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 operations
situated in South Africa. First Uranium also plans to grow production by
pursuing value-enhancing acquisition and joint venture opportunities in South
Africa and elsewhere.
For further information, please contact:
Bob Tait, Vice President, Investor Relations at bob@firsturanium.ca
+1 416 342-5639 (office) or +1 416 558-3858 (mobile)
1240-155 University Avenue, Toronto, ON M5H 3B7
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.
Date: 17/08/2009 07:36:01 Produced by the JSE SENS Department.
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