| Tue 16 May 2006, 8:08 | | sxr Uranium One Inc - Uranium One Reports First Qu |
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SXR
SXR
sxr Uranium One Inc - Uranium One Reports First Quarter Results
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
("Corporation")
NEWS RELEASE
May 15, 2006 Toronto, Ontario
Uranium One Reports First Quarter Results
Toronto, Ontario and Johannesburg, South Africa -- sxr Uranium One Inc. today
reported its 2006 first quarter financial results. All figures are in US
dollars unless otherwise indicated.
Complete details of the consolidated financial statements and Management"s
Discussion and Analysis for the three months ended March 31, 2006, can be found
on Uranium One"s website at www.uranium1.com as well as on SEDAR at
www.sedar.com.
Highlights of the first quarter of 2006 include:
* further investment of $13 million in the development of the Dominion
Uranium Project
* increase of $33 million in non-current assets primarily as a result of the
formation of Aflease Gold Limited
* realization of $8.1 million profit from the sale of 20% of New Kleinfontein
Mining Company Limited in connection with the formation of Aflease Gold
Limited
* operating loss of $9.6 million in line with Uranium One"s expectations
comprising $2.4 million from gold production, $1.5 million of G&A, $2.6
million of exploration expenditure and $3.2 million of share option
expenses
* completed a $140 million net proceeds capital raising for the Dominion
Uranium Project
* revised resource declaration at Dominion, increasing indicated U3O8
resources to 16.1 million lbs. and increasing inferred U3O8 resources to
146.6 million lbs.
* revised reserve and resource declaration at Modder East, increasing gold
reserves to 1.3 million ounces in the probable category, and increasing
indicated gold resources to 2.0 million ounces and inferred gold resources
to 1.0 million ounces
* continued progress on feasibility studies for the Dominion Uranium Project,
the Honeymoon Uranium Project and the Modder East Gold Project
Commenting on the Corporation"s results, Neal Froneman, President and Chief
Executive Officer of Uranium One, said: "This was a very significant quarter for
Uranium One. Early in the quarter, we declared a significant increase in our
uranium resources at Dominion, including a substantial increase in the indicated
resource grade. Our 79% owned subsidiary, Aflease Gold, also declared a
significant increase in gold reserves and resources at Modder East. In
February, we completed a substantial financing of $140 million. This enabled us
to continue fast-tracking the Dominion Project, which is on schedule to begin
production of uranium in the first quarter of 2007. In addition, during the
quarter, our technical teams also continued to progress feasibility studies for
our key projects - Dominion, the Honeymoon Uranium Project and Modder East. I
look forward to continued development at Dominion and to bringing Honeymoon and
Modder East to production decisions following completion of the feasibility
studies".
About sxr Uranium One
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
Johannesburg stock exchange. The Corporation owns the Dominion Uranium Project
in South Africa and the Honeymoon Uranium Project in South Australia, as well as
a number of exploration projects. The Corporation holds a 79% interest in
Aflease Gold Limited, which owns the Modder East gold project in South Africa.
Through a joint venture with Pitchstone Exploration Ltd., the Corporation is
also engaged in uranium exploration activities in the Athabasca Basin of
Saskatchewan.
For further information please contact:
Neal Froneman John Fraser Don Falconer
Chief Executive Officer Corporate Communications Vice President, Investor
Relations
Tel: + 27 11 482-3605 Tel: + 27 11 482-3605 Tel: +1 416 350-3657
Cautionary note concerning forward-looking statements and disclosure of
estimates of mineral resources: 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@uranium1.com or Don Falconer, Investor
Relations, at don@uranium1.com. The TSX has neither approved nor disapproved of
the information contained herein.
Date: 16/05/2006 08:08:19 AM Produced by the JSE SENS Department
