Business
sxr Uranium One Inc. News Release
sxr Uranium One Inc. News Release.
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\n\nTrading Symbol: SXR - The Toronto Stock Exchange\n\nTORONTO, ON and JOHANNESBURG, South Africa, March 24 /CNW/ - sxr Uranium\nOne Inc. announced today that its majority-owned Aflease Gold Limited\nsubsidiary has released its interim results for the six months ended December\n31, 2005. The results do not reflect the merger between Sub Nigel Gold Mining\nCompany (\"Sub Nigel\") and the Corporation's former New Kleinfontein Mining\nCompany subsidiary which occurred in January 2006 after the period under\nreview.\nFor the six months ended December 31, 2005, Sub Nigel reported a loss\nafter taxation of R8.192 million, or 10.25 cents per share, compared with a\nloss of R1.398 million, or 2.08 cents per share, in the six months ended\nDecember 31, 2004. The major contributors to the increased loss were an\nincrease in mining and development costs, the expensing of share options in\nterms of IFRS 2, merger costs incurred in connection with the merger of Sub\nNigel with New Kleinfontein and the impairment of certain mineral rights.\nDuring the period under review, sweeping and vamping operations at Sub Nigel\ncontinued on a minor scale. These marginal activities were stopped following\nthe merger.\nSubsequent to the period end, Aflease Gold Limited has impaired the\nbalance (R2.506 million) relating to the mining assets carried on Sub Nigel's\nVentersburg project in the Free State, as the Ventersburg mineralization is\nnot SAMREC-compliant. Aflease Gold Limited plans an exploration programme to\nassess the potential of this asset, in the belief that this is a highly\nprospective exploration target. In addition to the above, share options have\nbeen expensed at R0.988 million; this expense, together with the impairment of\nmineral rights on Ventersburg, aggregated R3.494 million.\nOther expenditure of R3.854 million was 136% higher than the R1.630\nmillion figure for the six months ended December 31, 2004. This increase in\nother expenditure was largely attributable to the costs of the merger between\nSub Nigel and New Kleinfontein.\nIn announcing the results, Aflease Gold CEO Neal Froneman stated that,\nwith a new management team, Aflease Gold is determined to move aggressively in\ngrowing and transforming the company.\nSaid Mr. Froneman: \"Looking forward, Aflease Gold is positioning itself\nto become a significant player in t...