| Tue 26 Sep 2006, 8:37 | | sxr Uranium One Inc - News Release |
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SXR
SXR
sxr Uranium One Inc - News Release
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
("Uranium One" or "the Corporation")
Trading Symbol: SXR - Toronto Stock Exchange, Johannesburg Stock Exchange
NEWS RELEASE
September 26, 2006 Toronto, Ontario
Uranium One Reports Exploration Results at the Dominion Uranium Project
Toronto, Ontario and Johannesburg, South Africa - sxr Uranium One Inc. is
pleased to provide an update on the results of its resource delineation and
exploration activities at the Dominion Uranium Project in South Africa for
the period from April 15 to September 8, 2006.
Prior to April 15, 2006, Uranium One completed drill programs comprising
some 105 BQ and NQ calibre drill holes, totalling 27,779 metres of drilling,
including 2,534 metres of deflections. This drilling focused primarily on
defining the shallow (less than 500 metres) resource in the Rietkuil 1 and
Dominion 1 and 2 areas. The results of these drill programs were reflected
in the revised Dominion resource estimate announced by the Company on June
14, 2006 and described in more detail in an independent technical report
prepared by SRK Consulting and filed on SEDAR on July 24, 2006 (also
available on the Company"s website at www.uranium1.com).
During the period from April 15 to September 8, 2006, drilling activities
focused on the delineation of additional resources in the down-dip extension
of known ore-shoots in the Rietkuil 1 and Dominion 1 and 2 decline areas and
the identification of new ore-shoots in the remaining target area. 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. During this period, a total of 78 boreholes (32,585 metres)
have been drilled, 40 at Rietkuil and 38 at Dominion. Assay values from 21
of these boreholes have been received; assay results from 44 boreholes are
pending and are expected by the end of October. Thirteen boreholes
consisted either of faulted reef intersections (not sampled) or areas of no
reef development.
Assay results for six of the Rietkuil ore-shoot boreholes (9 reef
intersections) have indicated Upper Reef values ranging between 0.79
kg/tonne (over 160 cm composite width) to 2.18 kg/tonne (over 100 cm
composite width). At Dominion, assay results for four boreholes (6 reef
intersections) drilled in the ore-shoot have indicated Upper Reef values
ranging between 0.40 kg/tonne and 0.81 kg/tonne (both over 160 cm composite
width). These results confirm the Company"s modelling and grade
predictions. In addition, previously defined geological domains have been
refined and extrapolated based on the new drilling information.
Drilling in this period also commenced in a new area (Dominion 3), located
approximately 3 km north of the Dominion 2 decline. Drilling at Dominion 3
is aimed at determining the resource potential associated with a possible
new decline. In this area, a thick sedimentary sequence (attaining
thicknesses of 15 m), containing well developed Lower, Middle and Upper Reef
is present. Initial assay results have been encouraging, with three Lower
Reef intersections from 2 boreholes, and 1 borehole containing faulted Lower
Reef, showing values ranging between 0.12 kg/tonne and 4.67 kg/tonne (over
100 cm composite width) and five Upper Reef intersections in the same 3
boreholes showing grades ranging from 0.25 kg/tonne (over 144 cm composite
width) to 0.45 kg/tonne (over 160 cm composite width). In light of these
results, the Company intends to continue with drilling in the Dominion 3
area to further assess the resource potential.
Since April 15, 2006, the number of diamond drill rigs on site has increased
to 23; of these, 17 are currently dedicated to the Dominion and Rietkuil
sections. Drilling at the Dominion Uranium Project is currently proceeding
at the rate of approximately 7,500 metres per month, with a further 20,000
metres of drilling scheduled for the remainder of 2006. Drilling to year
end will continue to focus on delineating the down-dip extensions of
identified ore-shoots, as well as further exploration in the Dominion 3
area.
A map of the drill hole locations and a table of drill results for the
drilling completed during the April 15 to September 8, 2006 period are also
available on the Corporation"s website.
Quality Assurance and Quality Control
The Dominion Uranium 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 Dr. R.A.
Stewart, Pr.Sci.Nat. (SACNASP), MGSSA, Regional Exploration Manager, sxr
Uranium One Inc., both qualified persons 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.
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
JSE Limited (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 an approximate 71% 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 Chris Sattler
Chief Executive Officer Vice President, Investor Relations
Tel: + 27 11 482 3605 Tel: +1 416 350 3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
This News Release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and "forward-
looking information" within the meaning of applicable Canadian legislation.
All statements other than statements of historical fact included in this
release including, without limitation, statements regarding potential
mineralization and reserves and future plans and objectives of Uranium One,
are forward-looking statements (or forward-looking information) that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors could cause actual results to differ materially from Uranium One"s
expectations. Such factors include, among others, the actual results of
exploration activities, actual results of reclamation activities, the
estimation or realization of mineral reserves and resources, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
availability of capital required to place Uranium One"s properties into
production, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future prices of commodities,
possible variations in ore grade or recovery rates, failure of plant,
equipment or processes to operate as anticipated, accidents, labour disputes
and other risks of the mining industry, delays in obtaining governmental
approvals, permits or financing or in the completion of development or
construction activities, Uranium One"s hedging practices, currency
fluctuations, title disputes or claims limitations on insurance coverage, as
well as those factors discussed under "Risk Factors" in Uranium One"s Annual
Information Form and Management"s Discussion and Analysis as filed with
securities regulatory authorities in Canada. Although Uranium One has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be
as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Uranium One does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.
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, please register on
Uranium One"s website - www.uranium1.com
Date: 26/09/2006 08:37:16 AM Produced by the JSE SENS Department
