Trading Symbol: SXR - The Toronto Stock Exchange
TORONTO, ON and JOHANNESBURG, South Africa, Feb. 13 /CNW/ - sxr Uranium
One Inc. announced today that its Aflease Gold Limited affiliate has received
a revised gold reserve and resource statement prepared by Turgis Consulting
(Pty) Ltd. for the Modder East gold project located in the East Rand
goldfields of South Africa.
The revised statement shows a reserve of 1.3 million ounces in the
probable category, grading an average of 4.02 g/t gold. This represents a 28%
increase over the reserve gold estimates contained in the October 20, 2005
amended independent technical report on the Modder East property prepared by
SRK Consulting (available on SEDAR). In addition, the revised statement shows
a resource of 2.0 million ounces in the indicated category (a 21% increase
from the 1.7 million ounces previously reported) and 1.0 million ounces in the
inferred category (a 23% increase from the 0.8 million ounces previously
reported). In all cases, mineral reserves and 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 resource at Modder East is derived from three reef horizons - the
Black Reef (average dip of 30) and the Kimberley UK9A and UK5 units (average
dip of 120). The high grade Black Reef mineralization zone is developed at
approximately 300 metres below surface, while the sub-cropping Kimberley (UK9A
and UK5) units below the Black Reef reach depths of around 600 metres. The
reef units are considered to be structurally simple and generally well
understood, as a result of a long history of mining the underlying Main Reef
on the East Rand and the selective mining of the UK9A unit at the adjacent
Petrex operations that resulted in the outlining of the major faults and
dykes.
The Black Reef comprises three facies. At the top is the high grade
Buckshot Pyrite Leader Zone (BPLZ), which averages 0.5 metres in thickness and
is the primary mining target. The BPLZ is a placer deposit, with gold present
within a heavy mineral suite dominated by pyrite and hosted within a
conglomerate. Continuity of mineralization in the target area has been
confirmed, with the zone of mineralization clearly visible within the drill
hole cores. The BPLZ overlies the Blanket Facies, a 1.5 metre thick blanket
quartzite which has not been targeted due to its very low gold grades. At the
bottom is the 3 metre thick, erosional Channel Facies, which grades 1.92 g/t
over 3 metres mining width.
The UK9A is a channelized, fluvial sedimentary deposit containing placer
gold within conglomerates. The UK5 is a multi-stacked package of robust
conglomerates. The mineralized portion of the package comprises a 3 metre
unit of medium to large pebble conglomerates. Dimensions of payability of
both the Black and Kimberley Reefs are dependent upon the sub-cropping nature
of the Kimberley units.
The table below summarizes the revised reserve and resource statement by
category:
Modder East Gold Project - Reserves and Resources Summary
Probable Mineral Reserves(1)
<<
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Tonnes Gold Grade Contained Gold
Reef Type (thousands) (g/tonne) (k/oz)
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BPLZ and Blanket Facies 6,310 4.83 979
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Channel Facies 2,466 1.92 152
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UK9A 1,289 4.10 170
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Total Probable 10,065 4.02 1,301
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(1) Mineral reserves estimated by Turgis Consulting (Pty) Ltd. and
reported in accordance with SAMREC. For reserve estimation purposes,
0.5 metres of Channel Facies is mined together with the 0.5 metres of
BPLZ to give an effective stoping width of 1 metre.
Indicated Mineral Resources(2)
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Tonnes Gold Grade Contained Gold
Reef Type (thousands) (g/tonne) (k/oz)
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BPLZ and Blanket Facies(3) 5,720 6.07 1,120
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Channel and Blanket Facies 15,200 1.32 650
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UK9A 1,350 5.47 240
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UK5
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Total Indicated 22,270 2.79 2,010
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Inferred Mineral Resources(2)
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Tonnes Gold Grade Contained Gold
Reef Type (thousands) (g/tonne) (k/oz)
-------------------------------------------------------------------------
BPLZ and Blanket Facies(3) 470 3.31 50
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Channel and Blanket Facies - - -
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UK9A 2,500 5.00 400
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UK5 9,700 1.82 570
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Total Inferred 12,670 2.50 1,020
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(2) Mineral resource estimated by Mr. Charles Muller, B.Sc.(Hons),
Pr.Sci.Nat., of Global Geo Services (Pty) Ltd. and reported to a cut-
off grade of 167 cmg/t (in the case of the BPLZ and Blanket Facies),
379 cmg/t (in the case of the Channel Facies), 199 cmg/t (in the case
of the UK9A) and 496 cmg/t (in the case of the UK5). Mineral
resources are reported in accordance with SAMREC. Mineral resources
are not mineral reserves and do not have demonstrated economic
viability.
(3) For resource estimation purposes, the Blanket Facies, which is
sandwiched between the BPLZ and the Channel Facies, has been combined
with either the BPLZ or the Channel Facies.
The increase in reserves reflects the results of the 2005 drilling
program conducted at the property by Aflease Gold and Uranium Resources
Limited, as well as a lower cut-off due in part to the gold price used in
determining the reserve estimate cut-off grade, which increased from US$400
per ounce at an exchange rate of US$1.00:R6.52 in 2004 to US$430 at an
exchange rate of US$1:R6.49 in 2005. The largest increase in the reserve is in
the UK9A unit, where 240,000 ounces of gold grading 5.47g/t were elevated to
probable reserve status.
The revised reserve statement was prepared by Turgis Consulting (Pty)
Ltd. and audited by SRK Consulting. The probable mineral reserves have
demonstrated profitability when included in a mine plan using industry
accepted mining methods and a gold price of US$430 per ounce and an exchange
rate of US$1.00:R6.49. The pay limit was used to identify blocks of ground for
mining. Within these blocks of ground, a marginal cut-off grade was applied to
identify additional panels for mining. Gold content figures are fully
inclusive of mining dilutions and gold losses and are reported as mill
delivered tonnes and head grade. Metallurgical recovery factors have not been
applied to the reserve figures.
The increase in the mineral resource has occurred primarily in the BPLZ,
Channel Facies and the UK5. The revised resource statement includes the UK5 as
a resource in the inferred category for the first time. The revised resource
estimate was prepared by Mr. Charles Muller, B.Sc.(Hons), Pr.Sci.Nat., of
Global Geo Services (Pty) Ltd., independent geoscience consultants to the
Corporation, and have been audited by SRK Consulting. Mr. Muller is a
qualified person for the purposes of NI 43-101.
2005 Drilling Program
The 2005 drilling campaign (from November 30, 2004 to November 30, 2005)
consisted of 32 BQ-calibre diamond drill holes, totalling 14,676 metres of
drilling (including 2,337 metres of deflections). Of the 32 drill holes, 26
intersected the target horizons while 6 stopped short as a result of
intersecting previously mined coal seams. An additional 505 metres of drilling
was completed in December 2005. Drilling is currently ongoing, with a further
4,460 metres of drilling scheduled for 2006.
The objectives of the 2006 drilling program will be to upgrade the
resource base in the main mineralized zones, in particular the BPLZ, UK9A and
UK5. The drilling strategy is to drill vertical boreholes to intersect
interpreted auriferous-bearing reefs located between 275 - 600 metres below
surface as close as possible to a right angle. Normal drilling procedure is
for the "mother hole" to be drilled into the BPLZ and the Kimberley Reef zone.
Core size is BQ (approximately 4.84 kgs core per metre) but all deflections
are drilled TBW size (approximately 6 kgs core per metre). Two short
deflections are standard on the BPLZ and, if developed, four deflections (two
short and two long) in the UK9A. Down-hole multi-shot borehole surveys are
then carried out at 6 metre intervals.
Assay values have been obtained for 24 of the boreholes. These holes,
which have been drilled to an average depth of 385 metres, have yielded a
total of 67 reef intersections (excluding deflections).
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Reef Type Number of Intersections
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BPLZ 18
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Channel Facies 20
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UK9A 22
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UK5 7
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Total 67
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The assay results of two further holes drilled in 2005 (DD53 and DD54)
are still outstanding.
The assay results from the 2005 drilling program available to date are
summarized in the schedule attached to this news release. A map of drill hole
locations can be accessed at the Corporation's website (www.uranium1.com).
Quality Assurance and Quality Control
The drilling program at Modder East is being carried out under the
direction of Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA,
Consulting Geologist, sxr Uranium One Inc., and a qualified person for the
purposes of NI 43-101. Geological and geostatistical modelling is undertaken
by two consultants, Peter Camden-Smith, M.Sc., G.D.Eng, MBL, Pr.Sci.Nat, and
Charles Muller, B.Sc.(Hons.), Pr.Sci.Nat., both of whom are 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. All borehole collars
are surveyed within an accuracy of 0.1 metre and borehole density measurements
are routinely performed on all intersections. Half-core assay samples are
collected by appropriately qualified personnel, the remaining half-core being
retained for inspection by interested parties. All boreholes have been
routinely logged in detail according to a standard procedure. Samples are
prepared and are assayed at the Anglo American Research Laboratory located
near Johannesburg, South Africa, which is accredited under SANAS and ISO
17025. Gold assays are performed using conventional lead collector fire assay
procedures, with ICP-OES instrumental finish. 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
JSE Limited (the Johannesburg Stock Exchange). The Corporation owns 100% of
the Dominion uranium project in South Africa and the Honeymoon uranium project
in South Australia. Through a joint venture with Pitchstone Exploration Ltd.,
the Corporation is also engaged in uranium exploration activities in the
Athabasca Basin of Saskatchewan. Aflease Gold Limited, formed on the
completion on January 23, 2006 of the reverse take-over of Sub Nigel Mining
Company by Aflease Gold and Uranium Resources Limited, is listed on the
Johannesburg stock exchange and is owned as to approximately 80% by sxr
Uranium One Inc.
Cautionary note concerning forward-looking statements and disclosure of
mineral reserves, resources and contained gold: 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 "probable reserves",
"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 reserve is the economically mineable part of a measured
or indicated resource demonstrated by at least a preliminary feasibility
study. This study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate at the
time of reporting that economic extraction can be justified. A mineral reserve
includes diluting materials and allows for losses that may occur when the
material is mined. A proven mineral reserve is the economically mineable part
of a measured resource for which quantity, grade or quality, densities, shape
and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters to support production planning and
evaluation of the economic viability of the deposit. A probable mineral
reserve is the economically mineable part of an indicated 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.
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(at)aflease.com or Don Falconer, Investor
Relations, at dfalconer(at)southerncrossres.com. The TSX has neither approved
nor disapproved of the information contained herein.
Modder East Project - Drill Program Results - 2005 (to November 30, 2005)
To view drill results, please see:
http://files.newswire.ca/215/ModderEastProject.doc
Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Consulting
Geologist, sxr Uranium One Inc., is the qualified person responsible for the
Modder East drilling program and has verified the data in the table above.
Exploration data is acquired by the Corporation and its consultants under
strict quality assurance and quality control protocols. All borehole collars
are surveyed within an accuracy of 0.1 metre and borehole density measurements
are routinely performed on all intersections. Half-core assay samples are
collected by appropriately qualified personnel, the remaining half-core being
retained for inspection by interested parties. All boreholes have been
routinely logged in detail according to a standard procedure. Samples are
prepared and are assayed at the Anglo American Research Laboratory located
near Johannesburg, South Africa, which is accredited under SANAC and ISO
17025. Gold assays are performed using conventional fire assay procedures.
Quality control procedures follow industry standard protocols and include the
use of blind control samples.
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%SEDAR: 00005203E
