| Mon 1 Feb 2010, 9:12 | | UUU - Uranium One Inc - Uranium One Announces 400% Increase in Kazakh Reserves |
|
UUU
UUU
UUU - Uranium One Inc - Uranium One Announces 400% Increase in Kazakh Reserves
to 47.8 Million Pounds and a 12% Increase in Indicated Resources at Karatau to
16.3 Million Pounds
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
February 1, 2010
Uranium One Announces 400% Increase in Kazakh Reserves to 47.8 Million Pounds
and a 12% Increase in Indicated Resources at Karatau to 16.3 Million Pounds
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
("Uranium One") today announced inaugural reserve estimates for its South Inkai
and Karatau Uranium Mines in Kazakhstan, as well as a significant increase in
resources at Karatau. The Company also announced the completion of the
acquisition of Christensen Ranch and Irigaray in Wyoming and an update to its
standstill arrangement with JSC Atomredmetzoloto.
Highlights
Reserves
- With the addition of reserves at South Inkai and Karatau, total
attributable proven and probable reserves in Kazakhstan increased by 400%
to 47.8 million pounds U3O8, from the adjusted reserve base for Akdala.
- The Company declared its first reserve at the Karatau Uranium Mine, with
attributable probable reserves of 14.6 million pounds U3O8.
- Uranium One also declared its first reserve at the South Inkai Uranium
Mine, with attributable proven and probable reserves of 23.6 million pounds
U3O8.
Kazakhstan Mineral Reserve Estimate (December 31, 2009)(1,2,3,4)
Proven Reserves Deposit Totals Company Share
Tonnes Grade Contained Ownersh Contained
(000`s) (% U3O8) U3O8 ip U3O8
(M lbs) (%) (M lbs)
South Inkai 6,100 0.011% 1.4 70% 0.9
Akdala 3,452 0.067% 5.1 70% 3.6
Total Proven 4.5
Probable Deposit Totals Company Share
Reserves
Tonnes Grade Contained Ownersh Contained
(000`s) (% U3O8) U3O8 ip U3O8
(M lbs) (%) (M lbs)
South Inkai 33,200 0.045% 32.5 70% 22.7
Karatau 12,542 0.106% 29.3 50% 14.6
Akdala 5,839 0.067% 8.6 70% 6.0
Total Probable 43.3
Notes:
1. South Inkai mineral reserves are based on 100% of measured and indicated
resources. Mineral reserves and depletion were confirmed by Simon
Gatehouse, BSc, MAIG, on the basis of a detailed review of the mineral
processing and metallurgical test and mine production results which were
confirmed by Brian Lancaster, BSc, PhD, FRMIT, Dip Law, MAusIMM.
2. Akdala reserve estimates as at July 31, 2006, have been adjusted to reflect
mine production to December 31, 2009.
3. Karatau mineral reserves are based on 100% of C1 resources and 50% of C2
resources. Mineral reserves and depletion were confirmed by Wayne
Valliant, P. Geo., on the basis of a detailed review of the mineral
processing and metallurgical test and mine production results. Mineral
reserves are based on a 90% well field recovery.
4. Figures subject to rounding.
Resources
- Karatau - 12% increase in attributable indicated resources to 16.3 million
pounds U3O8 and a 373% increase in attributable inferred resources to 4.7
million pounds U3O8.
Christensen Ranch and Irigaray
- Closing of the acquisition of Christensen Ranch and Irigaray for US$ 35
million in cash effective January 25, 2010.
- Uranium One now has a fully licensed and permitted processing facility
which will form the basis of the Company`s production plans in the Powder
River Basin of Wyoming.
Reserve and Resource Estimates
Karatau Uranium Mine
Scott Wilson Roscoe Postle Associates Inc. ("SWRPA") has provided the Company
with an updated NI 43-101 compliant mineral reserve and resource estimate as at
December 31, 2009 for the Karatau Uranium Mine. The updated Karatau resource
estimate incorporates new drilling information from 45,277 metres of drilling
from an additional 67 holes that were not included in the previous SWRPA
resource estimate as at November 2007.
Compared to the previous resource estimate, the new estimate shows a significant
increase in the Indicated and Inferred Resource categories as follows:
- 12% increase in Indicated Resources to 32.6 million pounds U3O8 (100%
basis)
- 373% increase in Inferred Resources to 9.5 million pounds U3O8 (100% basis)
SWRPA has also converted a portion of the Indicated Resources to a Probable
Reserve by assuming a 90% well field recovery rate. The Probable Reserve
estimate for Karatau is 12.5 million tonnes at a grade of 0.106% U3O8,
containing 29.3 million pounds U3O8 (100% basis).
In SWRPA`s opinion, in addition to the Indicated and Inferred Mineral Resources,
there is significant potential to increase the mineral resource base.
Exploration drilling indicated potential in the range of 20 million to 28
million tonnes grading 0.071% U3O8 to 0.118% U3O8, containing 41.6 to 57.2
million pounds U3O8. This potential quantity is based on the Volkovgeologia P1
mineral resource estimate. The tonnage and grade for the potential quantity is
conceptual in nature and further exploration is required to determine if this
mineralization can be classified as Mineral Resources. It is uncertain if
further exploration will result in the target being delineated as a Mineral
Resource.
Additional details of the updated reserve and resource estimate for Karatau can
be found in Appendix "A" attached hereto.
South Inkai Uranium Mine
Hellmann & Schofield Pty Ltd. has provided the Company with an updated NI 43-101
compliant mineral reserve and resource estimate for South Inkai as at December
31, 2009. This estimate was completed in order to conduct an independent
assessment of mining reserves at South Inkai to demonstrate the appropriate
equivalence under NI 43-101.
In the updated resource estimate, a small amount of indicated resource was
upgraded to the measured category. In addition, Hellman & Schofield have
estimated reserves for South Inkai as follows:
- Attributable proven reserves of 0.9 million pounds U3O8
- Attributable probable reserves of 22.7 million pounds U3O8
Additional details of the new reserve and resource estimate for South Inkai can
be found in Appendix "B" attached hereto.
Completion of Acquisition of Wyoming Assets
The acquisition of 100% of the MALCO Joint Venture ("MALCO") from wholly-owned
subsidiaries of AREVA and EDF for US$ 35 million in cash was completed on
January 25, 2010.
The assets of MALCO include the licensed and permitted Irigaray ISR central
processing plant, the Christensen Ranch satellite ISR facility and associated
U3O8 resources located in the Powder River Basin of Wyoming. Uranium One
expects that initial production from the Christensen Ranch project will commence
in 2011.
The Irigaray central processing plant currently has the capacity to produce
approximately 1.3 million pounds of dried U3O8 per year. Uranium One intends to
expand the processing capacity at Irigaray in line with the facility`s Nuclear
Regulatory Commission license to approximately 2.5 million pounds U3O8 per year
by incorporating a vacuum dryer purchased for use at the Company`s Moore Ranch
project.
Uranium One anticipates that its Moore Ranch project will now become a satellite
ISR operation, with loaded resins being transported to Irigaray for further
processing into dried U3O8. The Company`s other projects in the Powder River
Basin, including Ludeman, Peterson, Allemand-Ross and Barge could also be
developed as satellite operations, with final processing through Irigaray.
Update to ARMZ Standstill
Uranium One also announced that, at the request of JSC Atomredmetzoloto
("ARMZ"), the Company has agreed that ARMZ may temporarily exceed the 19.95%
standstill under the Framework Agreement between the two companies. This will
enable ARMZ to settle certain option agreements that were entered into with the
expectation that the transaction with the JUMI consortium, as originally
structured, would have closed by now.
If Kazakh regulatory approval to the issuance of the 117,000,000 common shares
underlying the debentures issued in January 2010 to the JUMI consortium is
received before settlement of the option agreements, the debentures will
automatically convert and ARMZ`s holdings would not exceed the 19.95% cap; if
option exercise occurs first, subject to applicable regulatory approvals (which
have been received, including FIRB approval in Australia), ARMZ would own
approximately 23.2% of Uranium One`s outstanding common shares. If the
convertible debentures remain outstanding in 12 months time, ARMZ has agreed to
reduce its holdings to the 19.95% level at that time.
About Uranium One
Uranium One is one of the world`s largest publicly traded uranium producers,
with a globally diversified portfolio of assets located in Kazakhstan, the
United States, South Africa and Australia.
For further information, please contact:
Jean Nortier
Chief Executive Officer
Tel: +1 778 384 6217
Chris Sattler
Executive Vice President, Corporate Development and Investor Relations
Tel: + 1 647 408 8274
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 "measured", "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 was prepared under the
supervision of and has been reviewed on behalf of the Corporation by Mr. M.H.G.
Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Senior Vice President Technical
Services of the Corporation, 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, changes in market conditions, the actual results of
current exploration activities, conclusions of economic evaluations, changes in
project parameters as plans continue to be refined, project cost overruns or
unanticipated costs or expenses, 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,
exchange rate and uranium price fluctuations, delays in obtaining government
approvals or financing or in completion of development or construction
activities, changes in, and the effect of government policy, risks relating to
the timing and completion of the transactions described in this press release,
the potential benefits thereof, risks relating to the benefits derived by the
Corporation from the strategic relationship described in this press release,
risks relating to the integration of acquisitions, to international operations,
to the price 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 www.uranium1.com.
Appendix A
Karatau Uranium Mine Reserve and Resource Estimate
Scott Wilson Roscoe Postle Associates Inc. ("SWRPA") has provided Uranium One
with an updated NI 43-101 compliant reserve and resource estimate as at December
31, 2009.
The estimate shows 12.5 million tonnes grading 0.118% U3O8, containing 32.6
million pounds U3O8 in indicated resources (16.3 million pounds attributable to
Uranium One), 5.4 million tonnes grading 0.080% U3O8, containing 9.5 million
pounds U3O8 in inferred resources (4.7 million pounds attributable to Uranium
One), and 12.5 million tonnes grading 0.106% U3O8, containing 29.3 million
pounds U3O8 in probable reserves (14.6 million pounds attributable to Uranium
One).
The previously reported mineral resource estimate as at November, 2007 was 9.7
million tonnes grading 0.135% U3O8, containing 29.3 million pounds U3O8 in the
indicated category (14.6 million pounds attributable to Uranium One), and 0.9
million tonnes grading 0.104% U3O8, containing 2.0 million pounds U3O8 in the
inferred category (1.0 million pounds attributable to Uranium One).
Mineral resources for the deposit were estimated by Volkovgeologia using the
system developed for Mongolia and the former Commonwealth of Independent States
countries. SWRPA previously reviewed the parameters and methodology for the C1
and C2 mineral resources in 2007. Since that time no further drilling has been
undertaken within the C1 mineral resource blocks. The outer limits of the C1
blocks have been slightly adjusted due to drilling on adjacent blocks. The
minimum grade-thickness used in the current mineral resource estimate has been
reduced to 0.04 m% from 0.06 m% used in the previous estimate. These amendments
have resulted in a 3% reduction in contained U in the C1 blocks. The C2 mineral
resources have increased since the 2007 estimate. Subsequent to the November
2007 mineral resource estimate, an additional 67 holes for a total of 45,277 m
were drilled and incorporated into the database. SWRPA visited the property and
reviewed the drill database, parameters, and methodology for the current C2
mineral estimate.
The Volkovgeologia mineral resource estimate reviewed for this report was as at
November 2008. Subsequently, Karatau has produced 1,815 t U from the C1 mineral
resource blocks. SWRPA has reduced the mineral resources by that amount to
estimate mineral resources and reserves as at December 31, 2009.
SWRPA is of the opinion that the methodology used to estimate the mineral
resources is appropriate and is in accordance with industry standards. SWRPA
has reviewed the drill density, geological knowledge, and reconciliation of
producing wellfields and has reclassified the resources to conform to the
definitions as stated by the Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral
Reserves (December 2005). Based on the data density, demonstrated continuity of
the mineralization, and established high recoverability of uranium from the
mineralization, 100% of the C1 category and 50% of the C2 category mineral
resources can be converted to the indicated resource classification. The
remaining 50% of the C2 category mineral resources can be converted to inferred
resources. A summary of the mineral resource estimate is presented in Table 1.
Table 1 - Karatau Mineral Resource Estimate (December 31, 2009)(1,2,3,4,5,6)
Resource Category Deposit Totals Company Share
Tonnes Grade Contained Ownership Contained
(000`s) (% U3O8) U3O8 (%) U3O8
(M lbs) (M lbs)
Indicated
Resources
Block 1 (1-8C1) 7,163 0.146% 23.1 50% 11.5
Block 1 (1-9C2) 5,379 0.080% 9.5 50% 4.7
Sub-Total 12,542 0.118% 32.6 50% 16.3
Indicated
Inferred Resources
Block 1 (1-9C2) 5,379 0.080% 9.5 50% 4.7
Notes:
1. Mineral resources are stated inclusive of mineral reserves.
2. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
3. Mineral resources are based on a 0.04 m% (grade x thickness) cut-off per
hole and a 0.10 m% cut-off per resource block.
4. Indicated Resources include 100% of C1 resources and 50% of C2 resources.
5. The mineral resources were confirmed by Wayne Valliant, P. Geo., on the
basis of a detailed review of the drill density, geological knowledge, and
reconciliation of producing wellfields.
6. Figures subject to rounding.
The resource estimate is based on parameters (e.g. cut-off grade, grade-
thickness, internal waste, mineralization to waste ratio, block size,
permeability and density) used for the South Inkai deposit and originally
approved by the Ministry of Geology and the Ministry of Atomic Energy and
Industry of the USSR. The modelling methodology applied considered similar
structural and tectonic characteristics, lithological and facies types and
hydrogeological and geotechnical features. The 2008 resource estimate is based
on information from approximately 104,000 metres of drilling. The indicated
resources have been drilled on fences 200 metres apart, with holes spaced at 50
metres. The inferred resources have been drilled on fences 400 metres apart,
with holes spaced at 50 to 200 metres apart. Gamma ray logging is used in
conjunction with the geological interpretations to determine the uranium
content.
In addition to the mineral resource estimate, SWRPA also converted part of the
indicated resources to probable reserves by assuming a 90% wellfield recovery.
A summary of mineral reserves is presented in Table 2.
Table 2 - Karatau Mineral Reserve Estimate (December 31, 2009)(1,2,3,4,5)
Reserve Category Deposit Totals Company Share
Tonnes Grade Contained Ownership Contained
(000`s) (% U3O8) U3O8 (%) U3O8
(M lbs) (M lbs)
Probable Reserves
Block 1 (1-8C1) 7,163 0.132% 20.8 50% 10.4
Block 1 (1-9C2) 5,379 0.072% 8.5 50% 4.3
Sub-Total Probable 12,542 0.106% 29.3 50% 14.7
Notes:
1. Mineral resources are stated inclusive of mineral reserves.
2. Mineral reserves are based on a 90% well field recovery.
3. Mineral reserves are based on 100% of C1 resources and 50% of C2 resources.
4. The mineral reserves were confirmed by Wayne Valliant on the basis of a
detailed review of the mineral processing and metallurgical test and mine
production results.
5. Figures subject to rounding.
The successful extraction of the deposit by means of the in situ leach technique
is mainly due to the favorable characteristics for uranium extraction where the
uranium is hosted in zones of acceptable permeability with good solution mining
conditions, a low carbonate content of the mineralized host rocks, and exhibits
a uniform distribution of uranium mineralization.
The updated mineral resource and reserve estimate for the Karatau Uranium Mine
is contained in an independent technical report prepared by SWRPA for filing in
accordance with the requirements of NI 43-101.
Appendix B
South Inkai Uranium Mine Reserve and Resource Estimate
Uranium One has received an updated resource and reserve estimate, as of
December 31, 2009, from Hellman & Schofield Pty. Ltd. ("H&S") for the South
Inkai Uranium Mine.
The estimate shows 6.1 million tonnes grading 0.011% U3O8, containing 1.4
million pounds U3O8 in the measured resource category (0.9 million pounds
attributable to Uranium One), 33.2 million tonnes grading 0.045% U3O8,
containing 32.5 million pounds U308 in the indicated resource category (22.7
million pounds attributable to Uranium One), 42.8 million tonnes grading 0.047%
U3O8, containing 44.4 million pounds U3O8 in the inferred resource category
(31.1 million pounds attributable to Uranium One), 6.1 million tonnes grading
0.011% U3O8, containing 1.4 million pounds U3O8 in the proven reserve category
(0.9 million pounds attributable to Uranium One), and 33.2 million tonnes
grading 0.045% U3O8, containing 32.5 million pounds U3O8 in the probable reserve
category (22.7 million pounds attributable to Uranium One).
The previously reported mineral resource estimate dated December 31, 2008 was
34.0 million tonnes grading 0.053% U3O8, containing 39.6 million pounds U3O8 in
the indicated category (27.7 million pounds attributable to Uranium One), and
42.8 million tonnes grading 0.047% U3O8, containing 44.4 million pounds U3O8 in
the inferred category (31.1 million pounds attributable to Uranium One).
The independent estimation of the resources and reserves reported in Table 1
below used the ordinary block kriging method and is based on production and
exploration information for the South Inkai Site 4, comprising mining blocks 1
to 7. The mining blocks correspond with prior reserve blocks 4-6-C1 and 4-8-C1,
as 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 438 holes drilled for
C1 reserves in the area of interest, and the drill fences for C1 reserves are
200 m apart, with holes spaced at 50 m. Based on this information, H&S is of
the opinion that all reserves estimated at the C1 Reserve confidence category
under Russian estimation protocols at South Inkai, can be considered equivalent
to the Canadian Institute of Mining, Metallurgy and Petroleum Definition
Standards for Mineral Resources and Mineral Reserves (December 2005) Indicated
Resources on the basis of similar contained estimated uranium. H&S is also of
the opinion, after having analyzed the production and extraction efficiencies,
that the C1 Reserves can be reported as Probable Reserves under the CIM code in
terms of contained uranium. The compensating differences between grade and
tonnage estimates are due to the different estimation techniques used and not to
any intrinsic uncertainty in the contained uranium at South Inkai.
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 have
assumed a disequilibrium factor of average 1.00 to do an estimation of 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 0.5 m
- radium from probe measurement adjusted to U% by applying disequilibrium
factor of 1.00
- rotation of the grid by 42 degrees anticlockwise
- estimation into blocks of 60 m W, 20 m N and 1 m depth (rotated grid)
- data search radii of 50 m W, 50 m N and 1 m depth for notionally Measured
Resources
- data search radii of 65 m W, 65 m N and 1.3 m depth for notionally
Indicated Resources
- a minimum of 16 data points and maximum of 32 x 0.5 m radiometric
composites within search radius for notionally Indicated and Measured
resources
- previously estimated Inferred Resources were not reviewed
- the same block dimensions and search criteria were used to estimate the
permeable proportions of blocks
Resources have been reported above a uranium cut-off grade of 0.01%.
Table 1 - South Inkai Mineral Resource Estimate (December 31, 2009)(1,2,3,4)
Resource Category Deposit Totals Company Share
Tonnes Grade Contained Ownership Contained
(000`s) (% U3O8) U3O8 (%) U3O8
(M lbs) (M lbs)
Measured Resources 6,100 0.011% 1.4 70% 0.9
Indicated 33,200 0.045% 32.5 70% 22.7
Resources
Sub-Total Measured 39,300 0.039% 33.9 70% 23.6
and Indicated
Inferred Resources
Block 1 (1-9C2) 42,800 0.047% 44.4 70% 31.1
Notes:
1. Mineral resources are stated inclusive of mineral reserves.
2. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
3. The mineral resources were confirmed by Simon Gatehouse, BSc, MAIG, on the
basis of an estimate of resources in mining blocks 1 to 7, and reported to
a cut-off grade of 0.01% U.
4. Figures subject to rounding.
In addition to the mineral resource estimate, H&S also converted the measured
and indicated resources to proven and probable reserves based on historical
recoveries for Kazakh ISR deposits. Kazakh ISR deposits have historically
averaged a 90% recovery against reserves. Production from the first two mining
blocks at South Inkai have performed in line with the expected 90% recovery. A
summary of mineral reserves is presented in Table 2.
Table 2 - South Inkai Mineral Reserve Estimate (December 31, 2009)(1,2,3,4)
Reserve Category Deposit Totals Company Share
Tonnes Grade Contained Ownership Contained
(000`s) (% U3O8) U3O8 (%) U3O8
(M lbs) (M lbs)
Proven Reserves 6,100 0.011% 1.4 70% 0.9
Probable Reserves 33,200 0.045% 32.5 70% 22.7
Sub-Total Proven 39,300 0.039% 33.9 70% 23.6
and Probable
Notes:
1. Mineral resources are stated inclusive of mineral reserves.
2. Mineral reserves are based on 100% of measured and indicated resources.
3. The mineral reserves were confirmed by Simon Gatehouse, BSc, MAIG, on the
basis of a detailed review of the mineral processing and metallurgical test
and mine production results which were confirmed by Brian Lancaster, BSc,
PhD, FRMIT, Dip Law, MAusIMM.
4. Figures subject to rounding.
The mining and processing of uranium at South Inkai Mine is well established and
the metallurgical performance has been proven.
The updated mineral resource and reserve estimate for the South Inkai Uranium
Mine will be contained in an independent technical report being prepared by H&S
for filing in accordance with the requirements of NI 43-101.
Date: 01/02/2010 09:12:01 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.
