| Mon 19 Dec 2011, 9:15 | | FUM - First Uranium Corporation - First Uranium to refocus Ezulwini Mine |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium to refocus Ezulwini Mine
operations to improve profitability
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 TO REFOCUS EZULWINI MINE OPERATIONS TO IMPROVE PROFITABILITY
TORONTO and JOHANNESBURG, December 19, 2011 - First Uranium Corporation
(Toronto: FIU.TO) (JSE: FUM) (ISIN: CA33744R1029) ("First Uranium" or the
"Company") announced today that it is assessing options to develop and implement
a new operating plan at the Ezulwini Mine in order to optimize cash flow and
overall profitability. The focus of the new operating plan will be on safety,
improving mining efficiency, and reducing fixed costs by mining ore from the
more profitable sections of the mine. Today`s announcement is part of the
Company`s strategic review announced on July 12, 2011, and the new plan is
intended to provide a stable platform for the sustainability of the Ezulwini
Mine.
One of the steps in the process is consultation with the unionized employees at
the Ezulwini Mine as mandated by Sections 189A and 189 of the South African
Labour Relations Act (the "SALRA"). This process will begin with a view to
minimizing contemplated potential job losses. In accordance with the SALRA, the
consultation period is for 60 days from the date the prescribed notice is given
to the unions.
First Uranium President and CEO, Deon van der Mescht said: "This is a necessary
step if we are to safeguard the considerable investment made to date in this
operation and the future sustainability of the mine. For the past nine months,
the Ezulwini Mine has been the subject of an intensive turn-around process. We
have devoted significant resources to position this operation to achieve the
production levels necessary for it to be profitable. The extremely unfortunate
fatal accidents in the latter half of the calendar year have had a significant
impact on employee morale and productivity, and as such the expected improvement
in production has not been forthcoming. We will, therefore, as required under
South African labour laws, give notice today pursuant to Section 189(3) of SALRA
in order to allow for contemplated possible employee reductions at the mine as
part of developing a new operating plan that will focus on mining more
profitable areas of the mine and reducing fixed costs in-line with the scale of
the operation. The new operating plan may result in up to 1,850 employees being
affected. The operation currently employs approximately 3,745 people.
"While the Company continues to believe in the inherent value and potential of
the Ezulwini Mine, decisive action is required in order to stem ongoing
operating losses. Although it is the holiday season and the timing is
unfortunate, management has determined that action must be taken now to mitigate
the effects of the Christmas shut down and provide employees with an opportunity
to increase productivity levels while reaching a consensus around the nature and
scope of changes necessary to implement the new operating plan."
The Company`s operation at the Mine Waste Solutions tailings reprocessing
project is not involved in the process being undertaken at the Ezulwini Mine.
CONFERENCE CALL
First Uranium will conduct a conference call with investors to discuss the
information in this news release on Tuesday December 20, 2011 at 09h00 (Toronto
time) and 15h00 (South African time).
Conference Call Numbers:
Canada & USA Toll Free Dial In: 1-800-319-4610
South Africa Toll Free Dial In: 0800-981-705
Other International Locations Dial In: +1-604-638-5340
Callers should dial in 5 - 10 min prior to the scheduled start time and simply
ask to join the First Uranium call.
Conference Call Replay Numbers:
Canada & USA Toll Free: 1-800-319-6413
Outside Canada & USA Call: +1-604-638-9010
Code: 2128, followed by the # sign
Duration: Available for 30 days
For further information, please contact:
Gail Strauss - gailstrauss@mweb.co.za
Deon van der Mescht - deonvdmescht@firsturanium.com
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming
a low-cost producer of gold and uranium through the expansion of the underground
development to feed the new gold and uranium plants at the Ezulwini Mine and the
ramp-up of production at the Mine Waste Solutions (MWS) tailings recovery
facility following the completion of a significant gold capital expansion
program in May 2011. Both operations are located in South Africa.
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 are forward-looking statements (or forward-looking
information). The Company`s plans involve various estimates and assumptions and
its business and operations are subject to various risks and uncertainties. For
more details on these estimates, assumptions, risks and uncertainties, see the
Company`s most recent Annual Information Form and most recent Management
Discussion and Analysis on file with the Canadian provincial securities
regulatory authorities on SEDAR at www.sedar.com. 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, including without
limitation, the statements regarding the new operating plan for Ezulwini Mine.
No assurance can be given that the Company will be successful in developing and
implementing a new operating plan that achieves the desired results.
Accordingly, readers should not place undue reliance on forward-looking
statements that are included herein, except in accordance with applicable
securities laws.
www.firsturanium.com
Date: 19/12/2011 09:15:01 Produced by the JSE SENS Department.
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