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SXR
SXR
sxr Uranium One Inc - sxr Uranium One Increases Uranium Resource at the Dominion
Project, South Africa
sxr Uranium One Inc
(Formerly Southern Cross Resources Inc.)
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: SXR ISIN: CA87112P1062
Share code on the TSX: SXR ISIN: CA87112P1062
("SXR")
January 03, 2006
sxr Uranium One Increases Uranium Resource at the Dominion Project, South Africa
Toronto, Ontario and Johannesburg, South Africa -- sxr Uranium One Inc.
(formerly Southern Cross Resources Inc.) (the "Corporation") is pleased to
report that it has received a revised mineral resource estimation for its
Dominion uranium project in South Africa which shows a significant increase in
indicated and inferred uranium resources, and a 50% increase in the indicated
uranium resource grade.
Revised Mineral Resource Estimate
The revised mineral resource estimate shows a uranium resource at Dominion of
16,121,000 pounds in the indicated category and 146,608,000 pounds in the
inferred category. This represents a 65% increase in indicated resources and a
29% increase in inferred resources over the estimates contained in the October
20, 2005 amended independent technical report on the Dominion property prepared
by SRK Consulting (available on SEDAR). The revised resource estimate shows a
gold resource at Dominion of 346,000 ounces in the indicated category (a 12%
increase from the 310,000 ounces previously reported) and 2,213,000 ounces in
the inferred category (a 6% increase from the 2,093,000 ounces previously
reported). In all cases, mineral resources have been reported in accordance
with the classification criteria of the South African Code for Reporting of
Mineral Resources and Mineral Reserves (the SAMREC Code).
The table below summarizes the revised resource estimate by category:
Dominion Uranium Project - Uranium and Gold Resources Summary (December 2005)
(1)
Indicated Mineral Resources
Reef Unit Tonnes U308 Grade Contained Gold Contained
(thousands) U308 Grade Gold
(kg/tonne) (k/lbs) (g/tonne) (k/oz)
Rietkuil 1,090 0.90 2,154 0.86 30
Upper
Rietkuil 230 1.04 534 0.81 6
Lower
Dominion 3,520 0.97 7,534 0.99 112
Upper
Dominion 2,520 1.06 5,899 2.44 198
Lower
Total 7,360 0.99 16,121 1.46 346
Indicated
Inferred Mineral Resources
Reef Unit Tonnes U308 Grade Contained Gold Contained
(thousands) (kg/tonne) U308 Grade Gold
(k/lbs) (g/tonne) (k/oz)
Rietkuil 37,410 0.61 49,893 0.64 770
Upper
Rietkuil 3,710 0.60 4,902 0.66 79
Lower
Dominion 27,630 0.45 27,413 0.76 675
Upper
Dominion 32,460 0.90 64,400 0.66 689
Lower
Total 101,210 0.66 146,608 0.68 2,213
Inferred
(1) Mineral resource estimated by Mr. Charles Muller, B.Sc.(Hons),
Pr.Sci.Nat., and Mr. Ashley Brown, B.Sc. (Hons)., GDE CFSG ENSMP, of Global Geo
Services (Pty) Ltd. and reported to a cut-off of 49 cmkg/t U308 and 0.00 g/tonne
gold. Mineral resources are reported in accordance with SAMREC. Mineral
resources are not mineral reserves and do not have demonstrated economic
viability.
The increase in uranium resources reflects a change in the methodology used to
derive and classify the mineral resources on the Dominion project, as well as
the results of drilling carried out at Dominion by the Corporation in 2005 (to
November 30). The previous estimates were based predominantly on local averages
of sample assay values within fault-bounded blocks. The new estimate is also
data-constrained to within 500m of available drill hole data but grade
estimation is by simple kriging, with log-normal post-processing of the block
averages to express the results in terms of 50m X 50m selective mining blocks,
within the larger 500m X 500m block estimates. In addition, the previous
resource estimate was presented at a cut-off of 35 cmkg/t U3O8, with selection
based on the average grades of large and variably sized blocks, whereas the new
resource estimate is reported as a non-linear geostatistical estimate at a cut-
off of 49 cmkg/t U3O8.
The increase in the average grade of mineral resources within the indicated
category, from 0.66 kg/t to 0.99 kg/t, reflects both the higher cut-off grade as
well as the non-linear post-processing techniques which have been applied. Data
from the drilling carried out during 2005 have also contributed positively to
the size and grade of the indicated mineral resource. The average grade of the
inferred mineral resource has increased by 0.02kg/t, a difference which is not
considered significant.
"As we are still in the early stages of our drilling program, the increase in
resources is pleasing," said Neal Froneman, President and Chief Executive
Officer of sxr Uranium One. "More importantly, though, is the 50% increase in
the indicated resource grade to 0.99 kg/t, which is in line with our mining
plans and financial models. This is consistent with our strategy of delineating
ore resources for mining and accordingly bodes well for our plans for production
of uranium at Dominion in 2007."
The revised resource estimate was prepared by Mr. Charles Muller, B.Sc.(Hons),
Pr.Sci.Nat., and Mr. Ashley Brown, B.Sc. (Hons)., GDE CFSG ENSMP, of Global Geo
Services (Pty) Ltd., independent geoscience consultants to the Corporation.
Both Mr. Muller and Mr. Brown are qualified persons for the purposes of NI 43-
101.
The revised resource estimates are currently being audited by SRK and will be
contained in an independent technical report being prepared by SRK for filing in
accordance with the requirements of NI 43-101. In the meantime, SRK has advised
Aflease that it is satisfied with the estimation methodology and classification
criteria employed in creating the new resource model and with the procedures
used by the Corporation and its consultants for the current drilling program.
2005 Drill Program
The 2005 drilling campaign (to November 30) has consisted of 57 BQ-calibre
diamond drill holes, totalling 12,136 metres of drilling (including 1,272 metres
of deflections), in the Rietkuil No. 1 and No. 2 and the Dominion No. 1 and No.
2 sections of the Dominion property. Drilling is currently ongoing, with the
completion of an additional 5,460 metres of drilling anticipated before year end
and a further 48,000 metres of drilling scheduled for 2006. The objectives of
the program are to increase the confidence in mineral resources that are located
within 200 - 300 metres vertical depth, as well as to validate historical data
derived from drilling carried out by Anglo American Corporation on the property
between 1966 and 1970 (six of the R1 section boreholes twinned historical Anglo
American boreholes). The drilling strategy is to drill steeply plunging (-90
degrees) boreholes in order to intersect interpreted uranium-bearing reefs as
close as possible to a right angle.
As of November 30, 2005, assay values have been obtained for 15 of the
boreholes. These holes, which have been drilled to an average depth of 220
metres, have yielded a total of 33 reef intersections (including deflections),
comprising 19 Upper Reef and 5 Lower Reef intersections in the R1 area and 5
Upper Reef and 4 Lower Reef intersections in the D2 area. The assay results
from these boreholes have been incorporated into the updated resource estimate
outlined above and are summarized in the schedule attached to this news release.
A map of drill hole locations can be accessed at the Corporation"s website
(www.southerncrossres.com).
Quality Assurance and Quality Control
The Dominion project drilling program is being carried out under the direction
of Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Consulting Geologist,
sxr Uranium One Inc. and a qualified person for the purposes of NI 43-101.
Exploration data is acquired by the Corporation and its consultants under strict
quality assurance and quality control protocols. Half-core assay samples are
collected by appropriately qualified personnel. Samples are prepared at an
onsite preparation facility managed by Superlabs Ltd. and are assayed at the Set
Point Laboratory located in Johannesburg, South Africa, which is accredited
under SANAC and ISO 17025. Gold assays are performed using conventional fire
assay procedures and uranium assays are performed using x-ray fluorescence
spectrometry on a pressed powder pellet or a borate fusion disc. Quality
control procedures follow industry standard protocols and include the use of
blind control samples.
sxr Uranium One Inc. is a Canadian uranium and gold resource company with a
primary listing on The Toronto Stock Exchange and a secondary listing on the JSE
Limited (the Johannesburg Stock Exchange). The Corporation owns 100% of the
Dominion uranium project in South Africa and the fully permitted Honeymoon
uranium project in South Australia. Through a joint venture with Pitchstone
Exploration Ltd., the Corporation is also engaged in uranium exploration
activities in the Athabasca Basin of Saskatchewan. The Corporation"s Aflease
Gold and Uranium Resources Limited subsidiary owns the Modder East gold property
and related gold assets in South Africa.
For further information please contact:
Neal Froneman John Fraser Don Falconer
Chief Executive Officer Corporate Communications Vice President, Marketing
&Investor Relations
Tel: + 27 11 482-3605 Tel: + 27 82 331 7330 Tel: +1 416 350-3657
Cautionary note concerning forward-looking statements and disclosure of
estimates of mineral resources and contained U308: Statements in this release
that are not historical facts are "forward-looking statements" involving known
and unknown risk and uncertainties which are beyond the ability of the
Corporation to control or predict and which could cause actual events or
results to differ materially from those anticipated in such forward-looking
statements. In addition, this news release uses the terms "indicated resources"
and "inferred resources" as defined in accordance with National Instrument 43-
101 - Standards of Disclosure for Mineral Projects, under the guidelines set out
in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Mineral Reserves, adopted by CIM Council on August 20,
2000, as may be amended from time to time by the CIM. 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. It cannot be assumed that all or any part of an inferred mineral
resource will be ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of feasibility or
pre-feasibility studies or economic studies except for preliminary assessments
as defined under NI 43-101. Investors are cautioned not to assume that all or
any part of an inferred resource exists or is economically or legally mineable.
To receive the Corporation"s news releases by email, contact John Fraser,
Corporate Communications at john@aflease.com or Don Falconer, Marketing and
Investor Relations, at dfalconer@southerncrossres.com. The TSX has neither
approved nor disapproved of the information contained herein.
Dominion Project - Drill Program Results - 2005 (to November 30)
Rietkuil Area
X Y Hole Composite Au U308 Reef Channel U308 Au
Coordi Coordin Number width cmg/t cmkg/t Unit width kg/t g/t
nate ate (cm) (1) (cm)
(2)
51972. 965764. DRT017D0 142 13.17 49.93 Upper 142 0.35 0.09
92 00
51972. 965764. DRT017D1 132 79.42 51.18 Upper 132 0.39 0.60
92 00
51952. 965084. DRT018D0 184 387.84 123.96 Upper 184 0.67 2.11
54 81
52014. 964947. DRT019D0 100 49.28 60.21 Upper 28 0.60 0.49
07 50
52155. 965452. DRT020D0 100 82.68 78.28 Upper 49 0.78 0.83
61 88
52154. 965452. DRT020D0 100 68.23 105.48 Upper 53 1.05 0.68
61 88
52153. 965452. DRT020D1 100 60.47 159.07 Upper 52 1.59 0.60
61 88
52154. 965452. DRT020D1 100 72.42 172.40 Upper 53 1.72 0.72
61 88
52329. 964850. DRT021D0 100 0.86 6.47 Upper 16 0.06 0.01
70 13
52329. 964850. DRT021D1 100 2.33 14.63 Upper 26 0.15 0.02
70 13
52162. 964958. TRX001D0 100 0.10 0.13 Lower 20 0.00 0.00
20 94
52162. 964958. TRX001D0 100 20.63 36.55 Upper 45 0.37 0.21
20 94
52446. 965357. TRX002D0 100 295.95 185.84 Upper 78 1.86 2.96
76 63
52445. 965357. TRX002D0 305 269.80 333.38 Upper 305 1.09 0.88
76 63
52391. 965529. TRX003D0 100 1.08 0.29 Lower 15 0.00 0.01
80 13
52391. 965529. TRX003D0 279 222.95 135.79 Upper 279 0.49 0.80
80 13
52391. 965529. TRX003D1 238 257.82 138.83 Upper 238 0.58 1.09
80 13
52079. 965893. TRX004D0 203 157.47 100.83 Upper 203 0.50 0.78
00 31
52077. 965583. TRX005D0 100 14.05 111.91 Lower 34 1.12 0.14
02 19
52077. 965583. TRX005D0 100 268.03 252.94 Upper 87 2.53 2.68
02 19
52207. 965258. TRX006D0 100 2.83 3.67 Lower 18 0.04 0.03
36 88
52207. 965258. TRX006D0 114 188.83 77.47 Upper 114 0.68 1.66
36 88
52207. 965258. TRX006D1 100 0.08 7.82 Lower 17 0.08 0.00
36 88
52207. 965258. TRX006D1 121 395.55 90.49 Upper 121 0.75 3.27
36 88
24 134 121.33 95.73 96 0.71 0.90
Dominion Area
X Y Hole Composite Au U308 Reef Channel U308 Au
Coordi Coordin Number width cmg/t cmkg/t Unit width kg/t g/t
nate ate (cm) (1) (cm)
(2)
59902. 973209. DDR023D0 100 0.26 0.03 Lower 17 0.00 0.00
47 19
59902. 973209. DDR023D0 100 73.85 3.23 Upper 45 0.03 0.74
47 19
59903. 972960. DDR024D0 100 21.52 1.63 Upper 18 0.02 0.22
97 13
60119. 972496. DDR027D0 100 40.04 22.73 Lower 24 0.23 0.40
34 25
60119. 972496. DDR027D1 100 19.52 22.65 Upper 19 0.23 0.20
34 25
60227. 972705. DDR030D0 100 0.14 0.61 Lower 29 0.01 0.00
83 5
60227. 972705. DDR030D0 100 26.50 15.40 Upper 86 0.15 0.26
83 5
60227. 972705. DDR030D1 100 0.17 0.43 Lower 14 0.00 0.00
83 5
60227. 972705. DDR030D1 100 13.41 8.71 Upper 61 0.09 0.13
83 5
9 100 21.71 8.38 35 0.08 0.22
Notes:
(1) While assays are undertaken on each sample, the results are composited to
represent a single mineralized length and grade, representing each reef
intersection over a minimum of 100 cm.
(2) Although the dip varies from borehole to borehole, average nominal dip
correction factors of 0.939 (20 degrees) and 0.965 (15 degrees) have been
applied for Rietkuil and Dominion, respectively.
M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Consulting Geologist of sxr
Uranium One Inc. is the Qualified Person responsible for the Dominion drilling
program and has verified the data in the table above. Exploration data is
acquired by the Corporation and its consultants under strict quality assurance
and quality control protocols. Half-core assay samples are collected by
appropriately qualified personnel. Samples are prepared at an onsite
preparation facility managed by Superlabs Ltd. and are assayed at the Set Point
Laboratory located in Johannesburg, South Africa, which is accredited under
SANAC and ISO 17025. Gold assays are performed using conventional fire assay
procedures and uranium assays are performed using x-ray fluorescence
spectrometry on a pressed powder pellet or a borate fusion disc. Quality control
procedures follow industry standard protocols and include the use of blind
control samples.
Date: 03/01/2006 04:39:38 PM Produced by the JSE SENS Department
