| Wed 14 Jun 2006, 17:54 | | sxr Uranium One Inc - News Release |
|
SXR
SXR
sxr Uranium One Inc - News Release
sxr Uranium One Inc.
26 Wellington Street East, Suite 820
Toronto, Ontario M5E 1S2
Trading Symbol: SXR - The Toronto Stock Exchange
NEWS RELEASE
June 14, 2006 Toronto, Ontario
Uranium One Reports Significant Increase in Resources at its Dominion
Uranium Project
Toronto, Ontario and Johannesburg, South Africa -- sxr Uranium One Inc.
is pleased to announce that it has compiled a revised mineral resource
estimation for its Dominion Uranium Project in South Africa, which shows
a significant increase in indicated and inferred uranium and gold
resources over the estimates reported in December 2005.
The revised mineral resource estimate will be incorporated into the
Dominion Uranium Project feasibility study currently being finalized by
the Corporation"s independent geotechnical consultants, SRK Consulting.
The Dominion feasibility study is expected, subject to the completion of
the independent review, to be released by mid-July 2006.
Revised Mineral Resource Estimate
The revised mineral resource estimate shows a uranium resource of
47,492,142 pounds U3O8 in the indicated category and 199,193,598 pounds
U3O8 in the inferred category. This represents a 195% increase in
indicated resources and a 36% increase in inferred resources over the
estimates contained in the December 2005 independent technical report on
the Dominion property prepared by SRK Consulting (available on SEDAR).
The average grade of the uranium resource has decreased from 0.99 kg/t
to 0.83 kg/t in the indicated category and from 0.66 kg/t to 0.51 kg/t
in the inferred category. The decrease in the average grade of the
indicated uranium resource is not considered significant in view of the
fact that selective mining will take place in the identified pay-shoot
areas.
In addition, the revised resource estimate shows a gold resource at
Dominion of 910,821 ounces in the indicated category (a 163% increase
from the 346,000 ounces previously reported) and 3,613,908 ounces in the
inferred category (a 63% increase from the 2,213,000 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 (June
2006) (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 8,575 0.78 14,721 0.89 245
Upper
Rietkuil 1,194 1.02 2,694 0.79 30
Lower
Dominion 11,240 0.83 20,652 0.99 358
Upper
Dominion 4,981 0.86 9,425 1.73 277
Lower
Total 25,990 0.83 47,492 1.09 910
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 52,949 0.52 61,096 0.39 664
Upper
Rietkuil 39,076 0.75 64,214 0.81 1,018
Lower
Dominion 54,977 0.35 42,713 0.55 972
Upper
Dominion 31,420 0.45 31,171 0.95 960
Lower
Total 178,422 0.51 199,194 0.63 3,614
Inferred
(1) Mineral resource estimated by Dr. Carina Lemmer of Geological &
Geostatistical Services and reported to a cut-off of 29 cmkg/t U3O8 for
Dominion and 35 cmkg/t U3O8 for Rietkuil 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 and gold resources reflects the results of an
extensive program of surface diamond drilling carried out at the
Dominion property in 2005 and 2006 (to April 15, 2006) and to a smaller
extent, a lower uranium cut-off grade as a result of continuing
increases in the uranium price and the by-product gold credits.
The diamond drilling program has facilitated geological modelling and
enhanced confidence in the associated geo-domaining of the Dominion
orebody for resource estimation purposes.
Information derived from the 2005-2006 program has also enabled the
Corporation to more accurately interpret historic drilling results,
allowing for the interpolation (kriging) of geo-domain variables
(including mineralized width and accumulation) within both the indicated
and inferred resource areas.
The uranium resources have been estimated using ordinary kriging in the
indicated resource areas; over the much larger domain of the inferred
resources, the geological homogeneity is considered sufficient to apply
simple kriging. Mean values for panels of 200m X 200m were kriged in
all indicated resource areas, based on data limited to a maximum mining
width of 160 cm; kriging in the inferred resource areas was based on the
full channel width of each reef.
The variations in cut-off values from 49 cmkg/t U3O8 for both Dominion
and Rietkuil in December 2005 to 29 cmkg/t U3O8 for Dominion and 35
cmkg/t U3O8 for Rietkuil in June 2006 reflect changes in metal prices
used to calculate the appropriate cut offs (to US $45/lb for U3O8 and US
$528/oz for gold) and the influence of by-product gold values included
in the cut-off determination not previously considered. Resource
classification was based largely on data quality, density and
statistical parameters.
The 0.16 kg/t decrease in the average grade of the indicated uranium
resource reflects both a lower cut-off grade as a result of an increase
in the uranium price and the inclusion of gold credits. The mineral
content to be mined from the indicated resource has been optimised by
applying a maximum mining width of 160cm across the deposit in areas
were the channel width exceeds this.
The 0.15kg/t decrease in average grade of the inferred uranium resource
is also not considered significant in light of the ongoing and planned
additional drilling at the project.
Said Uranium One"s President and CEO, Neal Froneman: "The continuing
increase in the uranium resources at the Dominion Project is very
gratifying. It provides a solid foundation for the Dominion feasibility
study and I am hopeful that the additional drilling taking place and
planned at this world-class resource will result in the delineation over
time of an even larger uranium resource. The indicated uranium grade,
while somewhat reduced from the December estimate, remains above the
level we have been using in our mining plans and financial models. This
bodes well for Dominion, which remains on track to begin producing
uranium oxide in the first quarter of 2007."
The revised resource estimate was prepared by Dr. Carina Lemmer of
Geological & Geostatistical Services, independent geoscience consultants
to the Corporation. The underlying geological modelling was conducted
by Dr. Richard Stewart, Pr.Sci.Nat. (SACNASP), MGSSA, Regional
Exploration Geologist for Uranium One. Each of Dr. Lemmer and Dr.
Stewart is a qualified person for the purposes of NI 43-101.
The revised resource estimate has been audited by SRK Consulting and
will be contained in an independent technical report being prepared by
SRK Consulting for filing in accordance with the requirements of NI 43-
101.
2005-2006 Drilling Program
The revised resource estimate reflects the results of the 2005 drilling
campaign (from May 6, 2005, to November 30, 2005) and the 2006 drilling
campaign (from December 1, 2005 to April 15, 2006). Over the period
from May 6, 2005 to April 15, 2006, 105 BQ and NQ-calibre diamond drill
holes (totalling 27,779 metres of drilling, including 2,534 metres of
deflections) have been drilled in the Rietkuil No. 1, 2 and 3 sections
and the Dominion No. 1 and 2 sections of the Dominion property.
Of the 105 holes, 3 were stopped prior to any reef intersection and a
further 14 intersected either faulting or failed to intersect reef. As
of April 15, 2006, assay values have been obtained for 88 of the
boreholes. These holes, which have been drilled to an average depth of
240 metres, have yielded a total of 254 reef intersections (including
deflections), comprising 81 Upper Reef and 51 Lower Reef intersections
in the Rietkuil section and 71 Upper Reef and 51 Lower Reef
intersections in the Dominion section. A map of the drill hole
locations and the assay results from these boreholes are available on
the Corporation"s website (www.uranium1.com).
The assay results obtained to date from the current drilling program
have confirmed the validity and reliability of the historical
information used in the earlier geological modelling and subsequent
resource estimations. The results have also facilitated the modelling
and confirmation of grade fingerprinting for regional geological
domains, enhancing confident grade predictions.
Drilling is currently ongoing, with a further 35,000 metres of drilling
scheduled for the remainder of 2006. The objective of this program is
to delineate the down-dip extensions of identified high grade zones.
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.
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,
Vice President, Geology and Exploration, 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 SANAS and ISO/IEC 17025. Gold assays are performed
using conventional fire assay procedures with an inductively coupled
plasma optical-emission spectroscopic ("ICP-OES") finish on 50g
aliquots, 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 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 Chris Sattler
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
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. A mineral resource is a concentration or occurrence
of natural, solid, inorganic or fossilized organic material in or on the
earth"s crust in such form and quantity and of such a grade or quality
that it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a mineral
resource are known, estimated or interpreted from specific geological
evidence and knowledge. A measured mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities, shape
and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough
to confirm both geological and grade continuity. An indicated mineral
resource is that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated
with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters to support mine
planning and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough for geological and grade continuity to be reasonably
assumed. An inferred mineral resource is that part of a mineral
resource for which quantity and grade or quality can be estimated on the
basis of geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade continuity. The
estimate is based on limited exploration and sampling gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. Mineral resources which are not mineral
reserves do not have demonstrated economic viability.
Investors are cautioned not to assume that all or any part of the
mineral deposits in the measured and indicated resource 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 Chris Sattler,
Vice President, Investor Relations, at chris@uranium1.com. The TSX has
neither approved nor disapproved of the information contained herein.
Date: 14/06/2006 05:54:36 PM Produced by the JSE SENS Department
