SEC Exemption No. 82-4831
Trading Symbol: SXR - The Toronto Stock Exchange
TORONTO, ON and JOHANNESBURG, South Africa, Jan. 3 /CNW/ - sxr Uranium
One Inc. (formerly Southern Cross Resources Inc.) (the "Corporation") is
pleased to report that it has received a revised mineral resource estimation
for its Dominion uranium project in South Africa which shows a significant
increase in indicated and inferred uranium resources, and a 50% increase in
the indicated uranium resource grade.
Revised Mineral Resource Estimate
The revised mineral resource estimate shows a uranium resource at
Dominion of 16,121,000 pounds in the indicated category and 146,608,000 pounds
in the inferred category. This represents a 65% increase in indicated
resources and a 29% increase in inferred resources over the estimates
contained in the October 20, 2005 amended independent technical report on the
Dominion property prepared by SRK Consulting (available on SEDAR). The revised
resource estimate shows a gold resource at Dominion of 346,000 ounces in the
indicated category (a 12% increase from the 310,000 ounces previously
reported) and 2,213,000 ounces in the inferred category (a 6% increase from
the 2,093,000 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
(December 2005)(1)
Indicated Mineral Resources
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Reef Unit Tonnes U308 Grade Contained Gold Grade Contained
(thousands) (kg/tonne) U308 (k/lbs) (g/tonne) Gold (k/oz)
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Rietkuil Upper 1,090 0.90 2,154 0.86 30
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Rietkuil Lower 230 1.04 534 0.81 6
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Dominion Upper 3,520 0.97 7,534 0.99 112
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Dominion Lower 2,520 1.06 5,899 2.44 198
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Total Indicated 7,360 0.99 16,121 1.46 346
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Inferred Mineral Resources
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Reef Unit Tonnes U308 Grade Contained Gold Grade Contained
(thousands) (kg/tonne) U308 (k/lbs) (g/tonne) Gold (k/oz)
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Rietkuil Upper 37,410 0.61 49,893 0.64 770
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Rietkuil Lower 3,710 0.60 4,902 0.66 79
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Dominion Upper 27,630 0.45 27,413 0.76 675
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Dominion Lower 32,460 0.90 64,400 0.66 689
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Total Inferred 101,210 0.66 146,608 0.68 2,213
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(1) Mineral resource estimated by Mr. Charles Muller, B.Sc.(Hons),
Pr.Sci.Nat., and Mr. Ashley Brown, B.Sc. (Hons)., GDE CFSG ENSMP, of
Global Geo Services (Pty) Ltd. and reported to a cut-off of 49 cmkg/t
U308 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 resources reflects a change in the methodology
used to derive and classify the mineral resources on the Dominion project, as
well as the results of drilling carried out at Dominion by the Corporation in
2005 (to November 30). The previous estimates were based predominantly on
local averages of sample assay values within fault-bounded blocks. The new
estimate is also data-constrained to within 500m of available drill hole data
but grade estimation is by simple kriging, with log-normal post-processing of
the block averages to express the results in terms of 50m X 50m selective
mining blocks, within the larger 500m X 500m block estimates. In addition, the
previous resource estimate was presented at a cut-off of 35 cmkg/t U3O8, with
selection based on the average grades of large and variably sized blocks,
whereas the new resource estimate is reported as a non-linear geostatistical
estimate at a cut-off of 49 cmkg/t U3O8.
The increase in the average grade of mineral resources within the
indicated category, from 0.66 kg/t to 0.99 kg/t, reflects both the higher cut-
off grade as well as the non-linear post-processing techniques which have been
applied. Data from the drilling carried out during 2005 have also contributed
positively to the size and grade of the indicated mineral resource. The
average grade of the inferred mineral resource has increased by 0.02kg/t, a
difference which is not considered significant.
"As we are still in the early stages of our drilling program, the
increase in resources is pleasing," said Neal Froneman, President and Chief
Executive Officer of sxr Uranium One. "More importantly, though, is the 50%
increase in the indicated resource grade to 0.99 kg/t, which is in line with
our mining plans and financial models. This is consistent with our strategy of
delineating ore resources for mining and accordingly bodes well for our plans
for production of uranium at Dominion in 2007."
The revised resource estimate was prepared by Mr. Charles Muller,
B.Sc.(Hons), Pr.Sci.Nat., and Mr. Ashley Brown, B.Sc. (Hons)., GDE CFSG ENSMP,
of Global Geo Services (Pty) Ltd., independent geoscience consultants to the
Corporation. Both Mr. Muller and Mr. Brown are qualified persons for the
purposes of NI 43-101.
The revised resource estimates are currently being audited by SRK and
will be contained in an independent technical report being prepared by SRK for
filing in accordance with the requirements of NI 43-101. In the meantime, SRK
has advised Aflease that it is satisfied with the estimation methodology and
classification criteria employed in creating the new resource model and with
the procedures used by the Corporation and its consultants for the current
drilling program.
2005 Drill Program
The 2005 drilling campaign (to November 30) has consisted of 57 BQ-
calibre diamond drill holes, totalling 12,136 metres of drilling (including
1,272 metres of deflections), in the Rietkuil No. 1 and No. 2 and the Dominion
No. 1 and No. 2 sections of the Dominion property. Drilling is currently
ongoing, with the completion of an additional 5,460 metres of drilling
anticipated before year end and a further 48,000 metres of drilling scheduled
for 2006. The objectives of the program are to increase the confidence in
mineral resources that are located within 200 - 300 metres vertical depth, as
well as to validate historical data derived from drilling carried out by Anglo
American Corporation on the property between 1966 and 1970 (six of the R1
section boreholes twinned historical Anglo American boreholes). 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.
As of November 30, 2005, assay values have been obtained for 15 of the
boreholes. These holes, which have been drilled to an average depth of 220
metres, have yielded a total of 33 reef intersections (including deflections),
comprising 19 Upper Reef and 5 Lower Reef intersections in the R1 area and 5
Upper Reef and 4 Lower Reef intersections in the D2 area. The assay results
from these boreholes have been incorporated into the updated resource estimate
outlined above and 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.southerncrossres.com).
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,
Consulting Geologist, 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 SANAC and ISO 17025. Gold assays are
performed using conventional fire assay procedures 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
JSE Limited (the Johannesburg Stock Exchange). The Corporation owns 100% of
the Dominion uranium project in South Africa and the fully permitted 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. The Corporation's Aflease
Gold and Uranium Resources Limited subsidiary owns the Modder East gold
property and related gold assets in South Africa.
Cautionary note concerning forward-looking statements and disclosure of
estimates of mineral resources and contained U308: 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. Investors are cautioned not to assume that all or any part of the mineral
deposits in these 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, Marketing and
Investor Relations, at dfalconer(at)southerncrossres.com. The TSX has neither
approved nor disapproved of the information contained herein.
Dominion Project - Drill Program Results - 2005 (to November 30)
Rietkuil Area
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Compo-
X Coor- Y Coor- Hole site Au U308 Reef Channel U308 Au
dinate dinate Number width cmg/t cmkg/t Unit width kg/t g/t
(cm)(1) (cm)(2)
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51972.92 965764.00 DRT017D0 142 13.17 49.93 Upper 142 0.35 0.09
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51972.92 965764.00 DRT017D1 132 79.42 51.18 Upper 132 0.39 0.60
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51952.54 965084.81 DRT018D0 184 387.84 123.96 Upper 184 0.67 2.11
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52014.07 964947.50 DRT019D0 100 49.28 60.21 Upper 28 0.60 0.49
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52155.61 965452.88 DRT020D0 100 82.68 78.28 Upper 49 0.78 0.83
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52154.61 965452.88 DRT020D0 100 68.23 105.48 Upper 53 1.05 0.68
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52153.61 965452.88 DRT020D1 100 60.47 159.07 Upper 52 1.59 0.60
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52154.61 965452.88 DRT020D1 100 72.42 172.40 Upper 53 1.72 0.72
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52329.70 964850.13 DRT021D0 100 0.86 6.47 Upper 16 0.06 0.01
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52329.70 964850.13 DRT021D1 100 2.33 14.63 Upper 26 0.15 0.02
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52162.20 964958.94 TRX001D0 100 0.10 0.13 Lower 20 0.00 0.00
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52162.20 964958.94 TRX001D0 100 20.63 36.55 Upper 45 0.37 0.21
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52446.76 965357.63 TRX002D0 100 295.95 185.84 Upper 78 1.86 2.96
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52445.76 965357.63 TRX002D0 305 269.80 333.38 Upper 305 1.09 0.88
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52391.80 965529.13 TRX003D0 100 1.08 0.29 Lower 15 0.00 0.01
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52391.80 965529.13 TRX003D0 279 222.95 135.79 Upper 279 0.49 0.80
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52391.80 965529.13 TRX003D1 238 257.82 138.83 Upper 238 0.58 1.09
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52079.00 965893.31 TRX004D0 203 157.47 100.83 Upper 203 0.50 0.78
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52077.02 965583.19 TRX005D0 100 14.05 111.91 Lower 34 1.12 0.14
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52077.02 965583.19 TRX005D0 100 268.03 252.94 Upper 87 2.53 2.68
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52207.36 965258.88 TRX006D0 100 2.83 3.67 Lower 18 0.04 0.03
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52207.36 965258.88 TRX006D0 114 188.83 77.47 Upper 114 0.68 1.66
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52207.36 965258.88 TRX006D1 100 0.08 7.82 Lower 17 0.08 0.00
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52207.36 965258.88 TRX006D1 121 395.55 90.49 Upper 121 0.75 3.27
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24 134 121.33 95.73 96 0.71 0.90
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Dominion Area
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Compo-
X Coor- Y Coor- Hole site Au U308 Reef Channel U308 Au
dinate dinate Number width cmg/t cmkg/t Unit width kg/t g/t
(cm)(1) (cm)(2)
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59902.47 973209.19 DDR023D0 100 0.26 0.03 Lower 17 0.00 0.00
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59902.47 973209.19 DDR023D0 100 73.85 3.23 Upper 45 0.03 0.74
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59903.97 972960.13 DDR024D0 100 21.52 1.63 Upper 18 0.02 0.22
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60119.34 972496.25 DDR027D0 100 40.04 22.73 Lower 24 0.23 0.40
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60119.34 972496.25 DDR027D1 100 19.52 22.65 Upper 19 0.23 0.20
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60227.83 972705.5 DDR030D0 100 0.14 0.61 Lower 29 0.01 0.00
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60227.83 972705.5 DDR030D0 100 26.50 15.40 Upper 86 0.15 0.26
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60227.83 972705.5 DDR030D1 100 0.17 0.43 Lower 14 0.00 0.00
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60227.83 972705.5 DDR030D1 100 13.41 8.71 Upper 61 0.09 0.13
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9 100 21.71 8.38 35 0.08 0.22
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Notes:
(1) While assays are undertaken on each sample, the results are
composited to represent a single mineralized length and grade,
representing each reef intersection over a minimum of 100 cm.
(2) Although the dip varies from borehole to borehole, average nominal
dip correction factors of 0.939 (20 degrees) and 0.965 (15 degrees)
have been applied for Rietkuil and Dominion, respectively.
M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Consulting Geologist
of sxr Uranium One Inc. is the Qualified Person responsible for the Dominion
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. 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 SANAC and ISO 17025. Gold assays are performed using conventional fire
assay procedures 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.
>>
%SEDAR: 00005203E
