| Fri 20 May 2005, 8:52 | | Media Release |
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Aflease Gold And Uranium Resources Limited - Media Release
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
AFL (JSE) AFLUY (NASDAQ)
(Registration number 1921/006955/06)
ISIN: ZAE000061461 Share Code : AFL
(`Aflease` or `the Company
MEDIA RELEASE
AFLEASE GOLD AND URANIUM RESOURCES DECLARES FIRST INDEPENDENTLY AUDITED URANIUM
RESOURCE AND A LARGE INCREASE IN GOLD RESERVES
Johannesburg, May 19, 2005: Aflease Gold and Uranium Resources Limited
(`Aflease`) is pleased to announce the receipt of its independently audited
mineral resource and ore reserve statement for the 2004 year, compiled by the
Company`s independent engineering consultants, Steffen Robertson and Kirsten
(South Africa) (Pty) Ltd (SRK) in accordance with the SAMREC code. (An extract
of the statement is attached to this release as Schedule A)
Based on this statement, the Company announces that it is declaring today, for
the first time, a SAMREC-compliant uranium resource at its Dominion, Rietkuil
and Bonanza South properties, comprising total inferred resources of 113,370,000
pounds of contained U3O8, at an average grade of 0.64 kg/t, and total measured
and indicated resources of 10,484,000 pounds of contained U3O8, at an average
grade of 0.45 kg/t. Independent auditors SRK have deducted, in addition to the
previous identified geological features, an additional 10% and 5% for undefined
internal geological losses in the Rietkuil and Dominion blocks respectively.
The resource does not at this stage include an estimated additional 200 million
pounds of uranium resource estimates prepared by AngloGold Ashanti, the previous
owner of the Dominion and Rietkuil properties, which have not been confirmed to
be compliant with SAMREC. Over the next five years, a planned program of
additional in-fill drilling, sampling, analysis and geological modeling is
expected to permit the classification of substantially all of these resources in
accordance with SAMREC.
The Company is also pleased to announce today a total gold reserve of 1,433,000
oz., at an average grade of 5.3 g/t, total measured and indicated gold resources
of 3,131,000 oz, at an average grade of 3.0 g/t, and total inferred gold
resources of 4,017,000 oz., at an average grade of 1.3 g/t. This represents
increases since 2003 of 53% in the Company`s total reserves with an increase of
16 % in average reserve grades. Measured and indicated gold resources have
increased by 89 % and total inferred resources have increased by 251%.
These estimates include 413,000 oz of reserves at Bonanza South, a 155% increase
over 2003, at an average grade of 5.5 g/t, and 1,019,000 oz. of reserves at
Modder East, a 32 % increase over 2003. Also included in these estimates are
low grade gold by-product resources from the Company`s Dominion and Rietkuil
primary uranium properties of 309,000 oz. in the measured and indicated
categories and 2,093,000 oz. in the inferred category.
In commenting on today`s announcement, Neal Froneman, chief executive officer of
Aflease, said: `We are very pleased with this set of results. In terms of
uranium, we are now one of a handful of companies worldwide, with code-compliant
uranium resources. Our code-compliant uranium resource base is already large and
we are confident it will expand significantly over the next five years.`
Froneman went on to state: `We are not, however, among those looking merely to
only own `pounds in the ground` - we intend to mine the uranium resources we
delineate; our focus is on production - that is how we will build long-term
value for our shareholders.`
On the increase in gold reserves, Froneman said: `The growth in our gold
reserves at Bonanza South is particularly gratifying, coming as it does as this
project is about to enter production next month. In addition, the increase in
the quality and size of our gold reserves and resources generally constitutes a
resounding vindication of our `strong rand` strategy, with its focus on high
margin assets. This has positioned us to create employment and opportunity in
both the gold and uranium sectors and we look forward to continue doing so.`
Uranium and gold mineralization, and occurrences reported on are contained in
the conglomeratic horizons within the Dominion Group and West Rand and Central
Rand Group of the greater Witwatersrand Basin. The mineral resource estimate for
uranium is based on the detailed reinterpretation of the AngloGold Ashanti
boreholes drilled for Rietkuil and Dominion and the 3D modeling of the
geological information from the 2D seismic survey in DataMine. The increase in
the gold resources and reserves, especially for Modder East, is the result of
additional infill drilling and an improved understanding of the geological
setting and gold distribution along the `shoreline`. Mineralised portions in the
drill core are sampled at predefined intervals and the assay analysis control
and assurance done by submitting blanks and standards for analysis. The mineral
resource, based on the 3D geological modeling, is that portion of the
mineralization that has the potential to be extracted economically and is
classified according to a decrease in geological confidence (continuity and
grade) in measured, indicated and inferred.
The competent person with overall responsibility for the compilation of the
mineral resource and ore reserve statement is Mr. H.G. Waldeck, Pr.Eng (ECSA),
who is an employee of SRK.
Some of the statements contained in this release are `forward-looking
statements` within the meaning of Section 21E of the U.S. Securities Exchange
Act of 1934. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of the Company to differ materially from the anticipated
results, performance or achievements expressed or implied by such forward-
looking statements. Factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties relating to
exploration, development and mining activities, estimates of reserves, mineral
deposits and production costs, commodity price and foreign currency exchange
rate fluctuations, political, regulatory and environmental risks, the continued
availability of capital and financing and general economic, market and business
conditions. Aflease disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
Cautionary note concerning estimates of indicated and inferred resources: This
release uses the terms `indicated resources` and `inferred resources`. U.S.
investors are advised that, although these terms are recognized under the SAMREC
code, the U.S. Securities and Exchange Commission does not recognize them. U.S.
investors are cautioned not to assume that part or all 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. It cannot be assumed that any part of an
inferred mineral resource will ever be upgraded to a higher category. U.S.
investors are cautioned not to assume that part or all of an inferred resource
exists or is economically or legally mineable.
AFLEASE GOLD AND URANIUM RESOURCES LIMITED: COMBINED OPERATIONS
ATTRIBUTABLE ORE RESERVE AND IDENTIFIED MINERAL RESOURCE STATEMENT
AS AT 31 DECEMBER 2004
ORE RESERVES (delivered to the Plant)
PROVED
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes)(Mlbs)
Combined Operations
Bonanza
Modder East
Turnbridge and Kleinfontein
Inner Basin
Outer Basin
Rietkuil Project
Dominion Project
PROBABLE
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes)(Mlbs)
Combined Operations
TOTAL 8.440 5.28 44.540 1.432
Bonanza 2.353 5.46 12.846 0.413
Modder East 6.087 5.21 31.694 1.019
Turnbridge
and
Kleinfontein
Inner Basin
Outer Basin
Rietkuil Project
Dominion Project
TOTAL
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes)(Mlbs)
Combined Operations
TOTAL 8.440 5.28 44.540 1.432
Bonanza 2.353 5.46 12.846 0.413
Modder East 6.087 5.21 31.694 1.019
Turnbridge and Kleinfontein
Inner Basin
Outer Basin
Rietkuil Project
Dominion Project
MINERAL RESOURCES (inclusive of Ore Reserves and In-Situ)
MEASURED
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes)(Mlbs)
Combined Operations
TOTAL 0.239 0.91 0.218 0.007 0.76 182,798 0.403
Bonanza
Modder East
Turnbridge
and
Kleinfontein
Inner Basin
Outer Basin
Rietkuil Project 0.239 0.91 0.218 0.007 0.76 182,798 0.4
Dominion Project
INDICATED
MEASURED
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes) (Mlbs)
Combined Operations
TOTAL 31.977 3.04 97.199 3.125 0.43 4,572,211 10.080
Bonanza 3.827 5.49 21.026 0.676 0.09 327,947 0.723
Modder East 17.014 3.04 51.787 1.665
Turnbridge
and
Kleinfontein 1.143 4.79 5.474 0.176
Inner Basin
Outer Basin 3.482 2.72 9.487 0.305
Rietkuil Project 0.178 0.70 0.124 0.004 0.70 124,284 0.274
Dominion Project 6.333 1.47 9.300 0.299 0.65 4,119,980 9.083
INFERRED
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes) (Mlbs)
Combined Operations
TOTAL 93.03 1.34 124.974 4.018 0.64 51,423,770 113.370
Bonanza
Modder East 4.922 5.24 25.785 0.829
Turnbridge
and
Kleinfontein 3.123 6.50 20.311 0.653
Inner Basin
Outer Basin 5.137 2.68 13.779 0.443
Rietkuil
Project 43.919 0.99 43.265 1.391 0.80 34,953,377 77.059
Dominion
Project 35.935 0.61 21.835 0.702 0.46 16,470,394 36.311
TOTAL
(Mt) Gold(g/t) Gold Gold U3O8 U3O8 U3O8
(tonnes) (Moz) (kg/t) (tonnes)(Mlbs)
Combined Operations
TOTAL 125.252 1.78 222.390 7.150 0.62 56,178,780 123.853
Bonanza 3.827 5.49 21.026 0.676 0.09 327,947 0.723
Modder East 21.936 3.54 77.572 2.494
Turnbridge
and
Kleinfontein 4.266 6.04 25.785 0.829
Inner Basin
Outer Basin 8.619 2.70 23.265 0.748
Rietkuil
Project 44.336 0.98 43.607 1.402 0.79 35,260,459 77.736
Dominion
Project 42.268 0.74 31.135 1.001 0.49 20,590,373 45.394
Date: 20/05/2005 08:30:20 AM
Produced by the JSE SENS Department
