Trading Symbol: SXR - The Toronto Stock Exchange
TORONTO, ON and JOHANNESBURG, South Africa, March 24 /CNW/ - sxr Uranium
One Inc. announced today that its majority-owned Aflease Gold Limited
subsidiary has released its interim results for the six months ended December
31, 2005. The results do not reflect the merger between Sub Nigel Gold Mining
Company ("Sub Nigel") and the Corporation's former New Kleinfontein Mining
Company subsidiary which occurred in January 2006 after the period under
review.
For the six months ended December 31, 2005, Sub Nigel reported a loss
after taxation of R8.192 million, or 10.25 cents per share, compared with a
loss of R1.398 million, or 2.08 cents per share, in the six months ended
December 31, 2004. The major contributors to the increased loss were an
increase in mining and development costs, the expensing of share options in
terms of IFRS 2, merger costs incurred in connection with the merger of Sub
Nigel with New Kleinfontein and the impairment of certain mineral rights.
During the period under review, sweeping and vamping operations at Sub Nigel
continued on a minor scale. These marginal activities were stopped following
the merger.
Subsequent to the period end, Aflease Gold Limited has impaired the
balance (R2.506 million) relating to the mining assets carried on Sub Nigel's
Ventersburg project in the Free State, as the Ventersburg mineralization is
not SAMREC-compliant. Aflease Gold Limited plans an exploration programme to
assess the potential of this asset, in the belief that this is a highly
prospective exploration target. In addition to the above, share options have
been expensed at R0.988 million; this expense, together with the impairment of
mineral rights on Ventersburg, aggregated R3.494 million.
Other expenditure of R3.854 million was 136% higher than the R1.630
million figure for the six months ended December 31, 2004. This increase in
other expenditure was largely attributable to the costs of the merger between
Sub Nigel and New Kleinfontein.
In announcing the results, Aflease Gold CEO Neal Froneman stated that,
with a new management team, Aflease Gold is determined to move aggressively in
growing and transforming the company.
Said Mr. Froneman: "Looking forward, Aflease Gold is positioning itself
to become a significant player in the South African gold industry, first with
Modder East and then with further mines. Aflease Gold is also actively seeking
new opportunities, and hopes to continue to be a driving force in the ongoing
consolidation of the East Rand, which has historically been an important gold
mining region, and in which we believe there is still considerable further
potential."
sxr Uranium One Inc. is a Canadian uranium and gold exploration and
mining company with a primary listing on the Toronto Stock Exchange and a
secondary listing on the Johannesburg Stock Exchange. The Corporation owns
100% of the Rietkuil Dominion uranium project in South Africa and the
Honeymoon uranium project in South Australia. The Corporation is also engaged
in the acquisition and development of uranium exploration properties in South
Africa, Australia and the Athabasca Basin in Saskatchewan. Aflease Gold
Limited, formed on the completion in January 2006 of the reverse take-over of
Sub Nigel Gold Mining Company by Aflease Gold and Uranium Resources Limited,
is listed on the Johannesburg stock exchange and owned approximately 79% by
sxr Uranium One Inc.
Cautionary note concerning forward-looking statements: Certain of the
information contained in this news release constitutes "forward-looking
statements". Such forward-looking statements include the Corporation's
expectations related to the future growth of Aflease Gold Limited, as well as
market fluctuations. Forward-looking statements are not statements of
historical fact and involve 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.
The TSX has neither approved nor disapproved of the information contained
herein.
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