| Thu 18 May 2006, 7:01 | | sxr Uranium One Inc - Aflease Gold Commences Const |
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SXR
SXR
sxr Uranium One Inc - Aflease Gold Commences Construction at
Modder East
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 Uranium One" or "the Company")
NEWS RELEASE
May 17, 2006
Toronto, Ontario
Aflease Gold Commences Construction at Modder East
Toronto, Ontario and Johannesburg, South Africa: sxr Uranium One Inc.
announced today that the Board of Aflease Gold Limited has approved the
commencement of the initial phase of the construction of the Modder
East Gold Mine located near the Town of Springs on South Africa"s East
Rand.
Activities under the 20 million Rand program approved by the Aflease
Gold Board include site clearing and box cut excavation. The program
also includes the selection and training of workers, the provision of
basic services and surface infrastructure and the purchase of trackless
development equipment for the decline. A sod turning ceremony, to mark
the commencement of the box cut, will take place tomorrow (May 18) at
the Modder East Project site.
The decision to fast track the Project reflects the confidence of the
Aflease Gold Board in the robust nature of the Project, based on
internal work recently done by the Company in connection with the
preparation of a formal feasibility study for the Project. The
feasibility study will be audited by the Company"s independent
engineering consultants, SRK Consulting. Assuming the study confirms
Aflease Gold"s own assessment of the Project, formal approval to
proceed with further Project construction and financing will be sought
at that time from the Aflease Gold Board, and the Board of its parent
company, sxr Uranium One.
Neal Froneman, CEO of Aflease Gold and CEO and President of sxr Uranium
One, said: "I am very gratified by the decision to get moving and by
the confidence shown in the Project by the Aflease Gold Board. The
decision is also a testament to three years of hard preparatory work on
the project by our Modder East technical team. I look forward to
completing the board approval process in July and thereafter to the
completion of the first new gold mine to be developed in the East Rand
in over two decades."
The projected Modder East mine would employ in excess of 1,000 people,
the majority of whom would be drawn from local communities. Further
details on the Project, including final projected capital expenditures
and operating costs, will be made available following completion of the
feasibility study.
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 Carol Smith Don Falconer
Chief Executive Officer Investor Relations 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: 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.
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: 18/05/2006 07:01:04 AM Produced by the JSE SENS Department
