| Mon 7 Sep 2009, 7:36 | | FUM - First Uranium Corporation - First Uranium Doubles Gold Production Capacity |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium Doubles Gold Production Capacity
At Mine Waste Solutions Operation In South Africa
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 DOUBLES GOLD PRODUCTION CAPACITY AT MINE WASTE SOLUTIONS OPERATION
IN SOUTH AFRICA
All amounts are in US dollars unless otherwise noted.
Efficiency of gold recovery markedly improving quarter over quarter
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced the
startup of the Company`s second gold plant (Phase 1B) at its Mine Waste
Solutions tailings recovery operation ("MWS") in South Africa. Having met
design specifications for throughput and gold recovery rates, the new gold plant
has a production life expectancy of 15 years. Over the next 12 months beginning
October 1, 2009, the new gold plant is expected to produce approximately 55,000
ounces of gold.
"The additional cash flow from doubling gold production at MWS is expected to
partially offset the necessary capital expenditures to complete the expansion of
the MWS operation," said Gordon Miller, First Uranium`s President and Chief
Executive Officer. "We believe that the cash resources of $123 million at June
30, 2009 and the cash forecast to be generated from the sale of gold and
uranium, together with the ZAR160 million (approximately $20 million) Simmer and
Jack Mines credit facility, will be sufficient to fund the completion of the
current capital projects at the Company`s two operations. To provide a buffer in
the event of a funding shortfall due to volatility in uranium and gold prices,
exchange rates or production rates, management is in discussion to advance its
long-standing intention to secure a project financing facility for MWS in South
Africa."
In the last fiscal quarter, MWS`s Phase 1A gold plant produced 11,007 ounces of
gold at a Cash Cost1 of $338 per ounce, placing the MWS operation among the
lowest cost gold mines in South Africa.
"We are confident that our Phase 1B uranium plant and the third and final gold
plant will be completed on schedule for their planned startups in December 2009
and by June 2010, respectively," said recently appointed MWS Chief Operating
Officer Scot Sobey. "The efficiency of gold recovery at our existing Phase 1A
gold plant improved by 9 per cent so far this quarter, and is expected to
increase again during September. Gold recovery and unit operating costs at both
gold plants are expected to improve even further when these plants begin to
operate in series with the Phase 1B uranium plant, which we plan to begin
operating in December 2009."
Notes:
1. "Cash Costs" are costs directly related to the physical activities of
producing gold and include mining, processing and other plant
costs; third-party refining and smelting costs; marketing expense, on-site
general and administrative costs; royalties; on-mine drilling expenditures
that are related to production and other direct costs. Sales of by-product
metals are deducted from the above in computing cash costs. Cash costs
exclude depreciation, depletion and amortization, corporate general and
administrative expense, exploration, interest, and pre-feasibility costs
and accruals for mine reclamation. Cash costs are calculated and presented
using the "Gold Institute Production Cost Standard" applied consistently
for all periods presented. The Gold Institute was a non-profit industry
association comprised of leading gold producers, refiners, bullion
suppliers and manufacturers. This institute has now been incorporated into
the National Mining Association. The guidance was first issued in 1996 and
revised in November 1999. Total cash costs per ounce is a non-GAAP
measurement and investors are cautioned not to place undue reliance on it
and are advised to read all GAAP accounting disclosures presented in the
Company`s audited consolidated financial statements for FY 2009 and
accompanying footnotes thereto.
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 news 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 law.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is actively pursuing 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 located in South Africa. First
Uranium also plans to grow production by pursuing value-enhancing 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, Ontario, Canada M5H 3B7
Figure 1: Mine Waste Solutions Phase 1A gold plant (background), Phase 1B gold
plant
(left foreground) and flotation plant (right foreground) as of early August 2009
is available on the website
Sponsor:Investec Bank Limited
7 September 2009
Date: 07/09/2009 07:36:04 Produced by the JSE SENS Department.
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