| Fri 4 Nov 2011, 9:17 | | UUU - Uranium One Inc - Uranium One Announces 42% Increase in Measured |
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UUU - Uranium One Inc - Uranium One Announces 42% Increase in Measured
and Indicated Resources at Mkuju River Project
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
November 3, 2011
Uranium One Announces 42% Increase in Measured and Indicated Resources at
Mkuju River Project
Toronto, Ontario and Johannesburg, South Africa - Uranium One Inc.
("Uranium One" or the "Company") today announced an updated mineral
resource estimate for the Mkuju River Project in Tanzania. The updated
resource model will form the basis for the definitive feasibility study
being prepared on the Mkuju River Project, which is expected to be
completed by the end of Q1 2012.
Highlights:
- 39% increase in Measured Resources to 55.3 million pounds U3O8
- 48% increase in Indicated Resources to 38.0 million pounds U3O8
- Inferred Resources of 26.1 million pounds U3O8
- 87% or 81.2 million pounds U3O8 of the Measured and Indicated
resources is within 60 metres of surface (91% of Measured
Resources and 82% of Indicated Resources)
Mkuju River Project Mineral Resource Estimate
as at September 27, 2011
Tonnage Grade Contained
(million (U3O8 ppm) U3O8
tonnes) (million
pounds)
Measured Resource 80.3 313 55.3
Indicated Resource 59.3 291 38.0
Total Measured & 139.6 303 93.3
Indicated
Inferred Resource 42.5 278 26.1
Notes: Reported at a cut-off grade of 100 ppm U3O8. All figures are
rounded to reflect appropriate levels of confidence. Apparent differences
may occur due to rounding. The resource estimate has been prepared by
independent consultants CSA Global Pty Ltd (`CSA`) under the supervision
of Qualified Person Mr. Malcolm Titley and is reported in accordance with
the Canadian National Instrument 43-101.
Resource Estimate
CSA Global Pty Ltd. ("CSA") has provided the Company with an updated NI
43-101 compliant mineral resource estimate as at September 27, 2011 for
the Mkuju River Project. The updated mineral resource estimate
incorporates a cut-off grade of 100 ppm U3O8, additional drilling data
and the use of Uniform Conditioning grade estimation methodology.
Compared to the mineral resource estimate previously announced by Mantra
Resources Ltd. ("Mantra") in November 2010 (which used a cut-off grade of
200 ppm U3O8), the updated mineral resource estimate shows a 39% increase
in the Measured Resource category to 55.3 million pounds and a 48%
increase in the Indicated Resource category.
The updated mineral resource estimate also shows a reduction in Inferred
Resources of 9.8 million pounds U3O8 primarily resulting from the
conversion of Inferred Resources into Indicated and Measured Resources.
Additional details of the updated mineral resource estimate can be found
in Appendix "A".
Mantra Resources
As previously announced, Uranium One`s 51% majority shareholder, JSC
Atomredmetzoloto ("ARMZ"), acquired Mantra on June 7, 2011 and Uranium
One is the operator of Mantra`s Mkuju River Project pursuant to an
operating agreement entered into with ARMZ. Additionally, Uranium One
has a call option to acquire Mantra from ARMZ for consideration equal to
ARMZ`s cost plus certain additional expenditures, exercisable until June
7, 2012. ARMZ also has a put option to sell Mantra to Uranium One for
the same consideration on June 7, 2012. The call option and put option
may be extended to June 7, 2013 if Uranium One partially exercises its
option and acquires approximately 15% of Mantra for US$150 million before
January 31, 2012. The option to acquire the remaining 85% interest in
Mantra (or 100% if the option is not partially exercised) will be subject
to Uranium One minority shareholder approval.
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 and Australia.
For further information, please contact:
Chris Sattler
Chief Executive Officer
Tel: +1 647 788 8500
Anton Jivov
Manager, Corporate Development and Investor Relations
Tel: +1 647 788 8461
Cautionary Statement
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
Scientific and technical information contained herein has been reviewed
on behalf of the Corporation by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP),
MSAIMM, MGSSA, Senior Vice President New Business and Technical Services
of the Corporation, a qualified person for the purposes of NI 43-101.
The information contained herein regarding the estimation of Mineral
Resources was prepared by Mr. Malcolm Titley of CSA Global Pty. Ltd. Mr.
Titley is a Member of the Australian Institute of Geoscientists and has
sufficient experience, which is relevant to the style of mineralisation
and type of deposit under consideration, and to the activity he is
undertaking, to qualify as a Competent Person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified
Person" under National Instrument 43-101 - `Standards of Disclosure for
Mineral Projects`. Mr. Titley has verified the data disclosed in this
release, including sampling, analytical and test data underlying the
information contained in this release.
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 completion of the transactions
described in this press release, the future steady state production and
cash costs of Uranium One, 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 and the realization of
synergies relating thereto, 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, 2010 and Management Information Circular dated August
3, 2010, each of 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
Mkuju River Project Mineral Resource Estimate
CSA Global Pty Ltd. ("CSA") has provided the Company with an updated
Canadian National Instrument 43-101 ("NI 43-101") compliant mineral
resource estimate as at September 27, 2011 (the "Updated Resource
Estimate") for the Mkuju River Project. Resource modelling for the Nyota
Prospect located within the Mkuju River Project has been updated for the
entire resource area using additional drilling data, Uniform Conditioning
("UC") grade estimation and a cut-off grade of 100 ppm U3O8 to produce a
mineral resource estimate.
Uranium mineralisation is hosted within sub-horizontal sandstone units
deposited within a braided stream system. The stream channel facies
sediments are considered better conduits for mineralisation compared to
the overbank facies, with interbedded claystone horizons and local normal
faulting playing a role in the distribution of mineralisation. The
channel and overbank facies can generally be differentiated through grain
size distribution modelling, with the channels being dominated by coarser
sediments. Surface geological mapping combined with drill hole logging
and down-hole geophysical conductivity data was used to define faults,
boundaries of the sedimentary facies cycles and claystone horizons. These
fining-upwards sequences bounded by clay horizons are termed cycles. The
average dip of cycles ranges between 2 and 3 degrees towards the north
and north-northeast, and in some cases towards the east.
Quality assurance and quality control information for all assay and
geophysical data was reviewed by CSA and showed acceptable levels of
precision and accuracy. Results comparing pairs of samples using chemical
assay and geophysical results were analysed within the mineralised
composites and showed a good comparison with assay data below 20 metres.
In the upper 20 metres, there is an indication of potential negative
disequilibrium, which has been taken into account in the Updated Resource
Estimate.
All drilling and trench data was composited to 1 metre down hole
intervals. Geostatistical analysis was completed for all areas, which
were subsequently grouped into zones defined by common geostatistical
parameters.
Grade estimation was carried out using Ordinary Kriging and UC. The UC
estimates were corroborated using Multiple Indicator Kriging ("MIK")
completed by Hellman and Schofield. The sedimentary cycle horizons were
used as an aid in determining zone boundaries and the directions of
mineralisation continuity. The cycle horizons were not used to constrain
the mineralisation. Variography was completed on zones where there was
sufficient data density; where data was insufficient, parameters from
nearby deposits were used.
Grade was estimated in a grid (panel) of 50 metres x 50 metres x 4 metres
("X x Y x Z"), with a recoverable Mineral Resource Estimate reported for
a selective mining unit ("SMU") of 10 metres x 10 metres x 4 metres. A
local uniform conditioning ("LUC") technique was used to convert the
panel blocks to SMU size blocks for use in subsequent mine planning.
The cut-off grade of 100 ppm U3O8 was selected in light of the proposed
addition of heap leach processing to the resin in pulp process currently
contemplated in the definitive feasibility study ("DFS") being prepared.
Three estimation passes were completed based on the ranges derived from
Gaussian transformed U3O8 variography. The orientation of the search
ellipses were aligned to the major direction of mineralisation continuity
for each zone. All potential mineralisation that fell outside the search
parameters was ignored and assumed to be waste.
Grades within 20 metres of surface were reduced by 30 ppm U3O8 to allow
for near surface negative disequilibrium observed at the MRP. This is an
increase from 10 metres used in the mineral resource estimate previously
announced by Mantra Resources in November 2010 due to additional data
obtained from the diamond drilling and chemical assay program.
Grade estimate validation confirmed that the block model reflects the
tenor of input grades, and can be considered reliable on a local scale in
the Measured and Indicated areas, and reliable on a global scale in the
Inferred areas.
The Updated Resource Estimate has been classified as Measured, Indicated
and Inferred, based on the guidelines specified in the JORC Code (2004
Edition) and Canadian National Instrument 43-101 ("NI 43-101").
CSA has considered the following in determining the classification of the
Updated Resource Estimate:
- Adequate validation of tenement title, drilling, sampling and
geological process completed during a number of site visits by
Mr Malcolm Titley, Principal Consultant, CSA Global (UK) Ltd,
from April 2008 to August 2010
- Adequate geological evidence for continuity of mineralisation
at the cut-off grade used in the estimation of the mineral
resource
- Adequate analytical evidence of U3O8 mineralisation through the
use of multiple methods of U3O8 measurement
- Adequate diamond core sampling to validate geophysical assay
results and provide metallurgical samples to confirm the
viability of U3O8 processing and recovery methods
- Adequate QA/QC controls in place to validate the U3O8 grades
- Adequate diamond core sampling to determine the dry in situ
bulk density in order to estimate the tonnage of mineralisation
- Resource classification based on the estimation search
parameters and the OK slope of regression, with material
classified as Measured where the average sample spacing = 60
metres and slope = 0.85, Indicated where average spacing is =
120 metres and slope = 0.7 and the remainder Inferred
- Use of a lower grade cut-off of 100 ppm for the Updated
Resource Estimate (compared to 200 ppm previously) resulting in
an increase in the Measured and Indicated resource, due
primarily to increased grade continuity at the lower grade cut-
off
- Near surface mineralisation, suitable U3O8 grade and known
economic extraction methods at the 100 ppm cut-off ensure this
resource has reasonable prospects for economic extraction.
Sponsor
Nedbank Capital
Date: 04/11/2011 09:17:00 Produced by the JSE SENS Department.
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