Trading Symbol: SXR - Toronto Stock Exchange, Johannesburg Stock Exchange
TORONTO, ON and JOHANNESBURG, South Africa, Aug. 16 /CNW/ - sxr Uranium
One Inc. ("Uranium One") reports that Aflease Gold Limited ("Aflease Gold")
has announced the results of the feasibility study conducted by Turgis
Consulting (Pty) Ltd ("Turgis") and independently audited by SRK Consulting
(South Africa) (Pty) Ltd ("SRK") on the Modder East Gold Project ("Modder
East") of its approximately 75% owned Aflease Gold subsidiary. Modder East is
located approximately 30km east of Johannesburg, South Africa.
<<
Highlights of the Modder East feasibility study include:
- The project is financially robust and technically viable
- The first phase of Modder East will target a Probable Reserve
estimated at 1.07 million ounces of gold contained within
6.68 million tonnes of ore at an average head grade of 5.00g/t
- The first gold pour is scheduled for Q3 2009
- Production at steady state (2010 to 2015) is expected to average
approximately 110,000 ounces of gold per annum
- Average cash operating cost is US$217/oz
- The first phase of the project has an operational life of 10 years
- As at June 1, 2006, the pre-finance, after-tax project cash flows
yield an IRR of 31% and an NPV at a discount rate of 0% of
US$156.9 million and an NPV at a discount rate of 8% of
US$74.0 million
- Project payback from commencement of mine construction is estimated
to be 4.5 years and is expected to be less than 2 years from the
start of on-reef development.
>>
The Modder East project encompasses a shallow underground mine with a
dedicated gold treatment facility with a production capacity of 70,000 tonnes
per month. The mine is expected to deliver 6.68 million tonnes of ore to the
plant over a 10 year period at an average mill head grade of 5.00g/t of gold,
producing approximately 948,290 ounces of gold during this period. The mine
plan has been developed by applying a one metre mining cut to all areas.
Mining will take place between 300 metres and 530 metres below surface.
The feasibility study has used a base case gold price of US$629/oz and an
exchange rate of US$1.00:ZAR6.585. The analysis has been completed in real
terms, and the valuation date is June 1, 2006.
In light of the positive results of the feasibility study, the Aflease
Gold board has approved the full implementation of the project.
Neal Froneman, CEO of Aflease Gold, commented: "The results of the
feasibility study have confirmed the high margin nature of Modder East. The
initial phase of construction is proceeding well and we are looking forward to
bringing the mine into production. This is a significant commitment as it will
be the first new gold mine in the East Rand in 28 years. We will also continue
to delineate additional Kimberley Reef resources in the project area for phase
2 with a view to either extending the life of the mine or increasing gold
production."
Modder East Project Overview
The Modder East Project is located approximately 30 km East of
Johannesburg in the Gauteng Province, South Africa. Aflease Gold will mine the
Black Reef at a depth of 300 metres below surface and the UK9a Kimberley Reef
at depths of between 300 metres and 530 metres below surface.
The company completed a pre-feasibility study in January 2004, which
returned favorable results. Additional exploration was carried out in the
project area in 2004 and 2005. The full feasibility study was completed on
May 19, 2006 and revised in June/July 2006.
Mineral Resources and Reserves
Aflease Gold carried out an extensive exploration program in the project
area. From this comprehensive sampling base, a Mineral Resource Estimate was
prepared by Peter Camden-Smith of Camden Geoserve and Charles Muller of Global
Geo Services (Pty) Ltd. Peter Camden-Smith has been involved in the Modder
East Project since 2001 and Charles Muller has been involved in the project
since 2003. All resources were subsequently audited by SRK. The estimates were
based on a three dimensional block model with grades interpolated using geo-
statistical methods.
Aflease Gold published a revised Mineral Resource for the Modder East
project on February 13, 2006, declaring a gold resource of 2.01 million ounces
of gold in the indicated category and 1.02 million ounces of gold in the
inferred category. Table 1 below summarizes the previously released resource
estimate by category as audited by SRK. The Mineral Resources were determined
using a gold price of US$430/oz and an exchange rate of US$1.00:ZAR6.49.
<<
Table 1 - SRK Audited Mineral Resource Estimate for Modder East
(February 13, 2006)
-------------------------------------------------------------------------
MINERAL RESOURCES
-------------------------------------------------------------------------
Cut-off Contained
Tonnage Grade Au Grade Gold
(thousands) (cmg/t) (g/tonne) (koz)
-------------------------------------------------------------------------
Indicated
Black Reef (BPLZ) + BF(1) 5,720 167 6.07 1,120
Channel Facies 15,200 379 1.32 650
Kimberley UK9a Reef 1,350 199 5.47 240
-------------------------------------------------------------------------
Total Measured &
Indicated Resources 22,270 2.79 2,010
-------------------------------------------------------------------------
Inferred
BPLZ + BF(1) 470 167 3.31 50
Kimberley UK9a Reef 2,500 199 5.00 400
Kimberley UK5a Reef 9,700 496 1.82 570
-------------------------------------------------------------------------
Total Inferred 12,670 2.50 1,020
-------------------------------------------------------------------------
(1) BPLZ - Buckshot Pyrite Leader Zone/BF-Blanket Facies
Notes:
1. The 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).
2. The Mineral Resources were estimated by Mr. Charles Muller 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). The Resource was audited by Dr
Mike Harley of SRK.
3. Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
The Indicated Resources detailed in Table 1 have been converted into a
Probable Reserve, as shown in Table 2, through a process of mine planning,
economic modeling and the application of appropriate modifying factors and is
reported as delivered to the plant.
Table 2 - SRK Audited Mineral Reserve Estimate for Modder East
(June 1, 2006)
-------------------------------------------------------------------------
PROBABLE MINERAL RESERVES
-------------------------------------------------------------------------
Contained
Tonnage Au Grade Gold
(thousands) (g/t) (koz)
-------------------------------------------------------------------------
Probable
BPLZ Mining 5,150 5.28 890
Kimberley UK9a Reef 1,420 3.97 180
-------------------------------------------------------------------------
Total Reserves 6,680 5.00 1,070
-------------------------------------------------------------------------
Notes:
1. The Mineral Reserve was estimated by Andrew Pooley of Turgis and
audited by HG (Wally) Waldeck of SRK.
2. Tonnes and grade are stated on the basis of delivery to the plant.
3. Mineral Reserves are included in Mineral Resources
>>
Reconciliation of Reserve Estimates
In its News Release of February 13, 2006, Aflease Gold had presented
Probable Mineral Reserves for the Modder East project of 10.1Mt at an average
grade of 4.02g/t. The reduction in Mineral Reserves as presented in this News
Release is based on a different mining philosophy which incorporates greater
confidence in the geological block model, modifying factors used to convert
Mineral Resources to Mineral Reserves, the level of accuracy of the
feasibility study and engineering assumptions made. SRK is satisfied that this
reduction in Mineral Reserves, given the changed mining philosophy and greater
confidence associated with the feasibility study, is reasonable.
Mine Design
The reefs will be accessed by a decline from surface, developed into the
footwall of both horizons and will be developed using trackless drilling,
loading and hauling. Mine personnel will access the workings via a vertical
ventilation shaft. The mining method will be traditional South African narrow
reef breast mining with face cleaning using scraper winches. Thirty tonne haul
trucks will be used to transport ore, loaded from stope chutes, to a central
silo system. Dedicated fifty tonne haul trucks will transport the ore to
surface.
The gold plant planned for Modder East is based on a standard carbon-in-
leach gold recovery process. The plant is designed to treat 840,000 tonnes of
ore per annum, yielding approximately 110,000 oz of gold annually at steady
state. The planned metallurgical recoveries are 88% for the Black Reef (BPLZ
facies) and 95% for the UK9a Reef.
Project Status
The Boards of Uranium One and of Aflease Gold decided to fast-track the
project and the initial stage of construction began on May 18, 2006. A budget
of US$3.04 million (ZAR20 million) was allocated to cover the following
activities:
<<
- Site clearing and portal excavation
- Selection of basic services and surface infrastructure
- Acquisition of trackless equipment
- Selection and training of workers
>>
The portal excavation and dam construction are well advanced and the
areas for the offices, workshops, stores and waste dump have been prepared.
The trackless equipment has been secured. The supply of water to the mine has
been sourced from the local municipality. The development team and associated
support team have been recruited and training is in progress.
The project is on schedule for the commencement of gold production in Q3
2009.
Operating Costs
The operating costs have been prepared using zero-based costing
techniques (i.e. without factoring-in historical costs) assuming reasonable
consumable consumption levels and are in January 1, 2006 money terms.
The average operating cost for the life of mine is US$30.82 per tonne of
ore milled in real terms including rehabilitation costs and excluding
envisaged royalties and tax, reflecting the low cost nature of this shallow
mine. In line with the company's accounting policy all footwall development
and associated infrastructure has been capitalized at an amount of
US$36.3 million. Conversion of the capitalized development costs into an
operating cost increases the average life of mine cost to US$34.31 per tonne
of ore milled, which is reasonable when compared to other narrow reef
operations.
Capital Costs
Capital costs have been estimated at the appropriate level with the back
up of budgetary quotes from major equipment suppliers. The capital estimate
for the plant is based on the use of new equipment. The capital costs were
estimated in South African Rand on January 1, 2006, and converted to US
dollars at US$1.00(equal sign)ZAR6.585. The project construction capital expenditure
totals US$58.5 million. Working capital comprising of pre- production costs
and footwall development is US$40.9 million. Contingencies catering for the
construction capital expenditure as well as the working capital expenditure
total US$8.5 million. In addition, the ongoing capital costs for the life of
mine have been estimated at US$6.5 million. The data is shown in Tables 3 and
4 below:
<<
Table 3: Modder East Project - capital expenditure estimates
-------------------------------------------------------------------------
Total
Capital
Project Ongoing require-
Capital Item Units Capital Capital ments
-------------------------------------------------------------------------
Surface engineering (US$'000) 15,155 626 15,781
Capital Development (US$'000) 34,885 1,441 36,327
Mining equipment (US$'000) 8,857 366 9,223
Replacement equip (US$'000) 0 2,743 2,743
Shaft sinking (US$'000) 9,037 373 9,410
Underground engineering (US$'000) 1,890 78 1,968
Process Plant (US$'000) 19,242 795 20,037
Tailings dam (US$'000) 2,565 0 2,565
Preproduction costs (US$'000) 5,984 0 5,984
Environmental (Initial Sum) (US$'000) 346 0 346
Design (US$'000) 1,422 0 1,422
Contingencies (US$'000) 8,461 53 8,513
-------------------------------------------------------------------------
Total Modder East (US$'000) 107,844 6,476 114,320
-------------------------------------------------------------------------
Table 4: Modder East Project - estimated closure costs
-------------------------------------------------------------------------
Cost
provision
(US$'000s
Activities as at 2006)
-------------------------------------------------------------------------
Operational costs per annum
Proposed operational budget from 2009 (environmental) 59
Annual provision for SLP initiatives 100
Ongoing capital costs
EMPR update, specialist studies and water
use licence application 137
Closure liability
Liability as determined by Study 1,950
SRK estimated additional liability (post closure monitoring) 296
Total estimated closure liability 2,246
-------------------------------------------------------------------------
Provision for closure at end of life of mine in Trust Fund 186
Outstanding provision to be funded over life of mine 2,060
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
Financial Evaluation
The project has been valued in real terms as at June 1, 2006. As at that
date the pre-finance after-tax cash flows yield an IRR of 31%. At a real
discount rate of 0% the project is estimated to yield an after-tax NPV of
US$156.9 million and at a real discount rate of 8%, the project is estimated
to yield an after-tax NPV of US$74.0 million. Project payback from
commencement of mine construction is estimated to be 4.5 years and is expected
to be less than 2 years from the start of on-reef development. Table 5 below
summarizes the results of the feasibility study:
<<
Table 5: Modder East Project - nominal cash flow model
-------------------------------------------------------------------------
Financial Year Units Totals 2006(1) 2007 2008 2009 2010 2011
Project Year /Averages 1 2 3 4 5 6
Tonnes Milled (kt) 6,680 0 0 36 491 767 845
Head Grade (g/t) 5.0 0.0 0.0 13.6 8.0 4.8 3.3
Metallurgical
Recovery (%) 88% 0% 0% 0% 87% 87% 88%
Recovered Gold (koz) 948 0 0 0 123 102 78
Gold Price (US$/oz) 721 629 642 654 667 681 694
Exchange Rate (ZAR:US$) 6.59 6.84 7.11 7.39 7.68 7.98
-------------------------------------------------------------------------
Sales Revenue (US$m) 596.5 - - - 77.5 64.5 49.3
Sales Escalation (US$m) 87.6 4.8 5.3 5.1
Less Mineral
Royalties (US$m) (31.2) (2.9) (2.6) (2.2)
Attributable
Revenue (US$m) 652.9 79.4 67.2 52.2
-------------------------------------------------------------------------
Total Working
Costs (US$m) (256.7) - - (0.2) (21.5) (25.9) (26.2)
Mining (US$m) (139.4) - - - (9.4) (14.8) (16.3)
Processing (US$m) (42.9) - - - (3.4) (4.7) (5.1)
Administration(1)(US$m) (37.4) - - (0.2) (2.3) (4.0) (3.6)
Operating Cost
Escalation (US$m) (35.0) - - - (0.9) (1.9) (2.6)
Working Capital
Changes (US$m) (2.1) - - - (5.5) (0.5) 1.3
-------------------------------------------------------------------------
Operating Profit (US$m) 397.6 - - (0.2) 58.0 41.4 26.2
-------------------------------------------------------------------------
Tax Deductible
Allowances (US$m) (121.0) (10.4) (21.6) (39.5) (15.6) (10.2) (4.9)
Tax Liability (US$m) (88.9) - - - - - (4.7)
-------------------------------------------------------------------------
Capital
Expenditure (US$m) (121.0) (10.4) (21.6) (39.5) (15.6) (10.2) (4.9)
Project (US$m) (107.8) (10.4) (21.2) (37.9) (14.4) (9.1) (4.0)
Ongoing (US$m) (6.5) - - - (0.3) (0.4) (0.4)
Capital
escalation (US$m) (6.7) - (0.4) (1.5) (0.9) (0.8) (0.5)
-------------------------------------------------------------------------
Final Net Free
Cash - Nominal (US$m) 186.3 (10.4) (21.6) (39.7) 42.2 31.1 16.5
Final Net Free
Cash - Real (US$m) 156.9 (10.4) (21.2) (38.2) 39.8 28.7 14.9
Cash Operating
Costs - Real (US$/oz) 231 - - - 122 229 318
-------------------------------------------------------------------------
------------------------------------------------------------------
Financial Year Units 2012 2013 2014 2015 2016 2017
Project Year 7 8 9 10 11 12
Tonnes Milled (kt) 834 832 794 840 658 431
Head Grade (g/t) 4.9 5.6 6.0 4.5 3.7 4.1
Metallurgical
Recovery (%) 88% 89% 88% 88% 88% 91%
Recovered Gold (koz) 112 133 138 107 69 52
Gold Price (US$/oz) 708 723 737 752 767 782
Exchange Rate (ZAR:US$) 8.29 8.62 8.96 9.31 9.67 10.05
------------------------------------------------------------------
Sales Revenue (US$m) 70.8 83.7 86.7 67.4 43.1 32.6
Sales Escalation (US$m) 8.9 12.4 14.9 13.2 9.5 7.9
Less Mineral
Royalties (US$m) (3.4) (4.3) (4.9) (4.1) (2.8) (2.3)
Attributable
Revenue (US$m) 76.3 91.8 96.7 76.5 49.8 38.2
------------------------------------------------------------------
Total Working
Costs (US$m) (29.8) (29.6) (29.1) (28.1) (27.4) (24.0)
Mining (US$m) (16.1) (16.1) (16.1) (16.3) (16.0) (12.6)
Processing (US$m) (4.8) (4.9) (4.9) (5.0) (4.9) (3.8)
Administration(1)(US$m) (3.9) (3.6) (3.4) (3.7) (3.4) (3.4)
Operating Cost
Escalation (US$m) (3.1) (3.7) (4.2) (4.9) (5.3) (4.8)
Working Capital
Changes (US$m) (1.9) (1.3) (0.4) 1.7 2.2 0.6
------------------------------------------------------------------
Operating Profit (US$m) 46.6 62.4 67.8 48.6 22.5 14.4
------------------------------------------------------------------
Tax Deductible
Allowances (US$m) (6.4) (5.5) (3.4) (1.1) (1.1) (1.0)
Tax Liability (US$m) (13.3) (19.2) (21.9) (16.0) (6.9) (4.1)
------------------------------------------------------------------
Capital
Expenditure (US$m) (6.4) (5.5) (3.4) (1.1) (1.1) (1.0)
Project (US$m) (4.0) (4.3) (0.9) (0.5) (0.5) (0.5)
Ongoing (US$m) (1.7) (0.4) (1.9) (0.4) (0.4) (0.4)
Capital
escalation (US$m) (0.7) (0.7) (0.5) (0.2) (0.2) (0.2)
------------------------------------------------------------------
Final Net Free
Cash - Nominal (US$m) 26.7 37.5 42.4 31.3 14.3 9.1
Final Net Free
Cash - Real (US$m) 23.7 32.7 36.2 26.2 11.8 7.3
Cash Operating
Costs - Real (US$/oz) 221 185 177 233 354 382
------------------------------------------------------------------
(1) The administration cost includes a provision for separation benefits
during the life of mine of US$13 million, which should be excluded
from the calculation of unit operating cost. The cash operating costs
would be US$217 per ounce excluding the separation benefits of
US$13 million.
>>
The numbers in the above table have been rounded, and any resulting
discrepancies should not be regarded as material.
Sensitivity Analysis
The following tables show the NPV of the real cash flows as derived from
the financial model for the project. The tables illustrate that the project is
neither capital nor operating cost sensitive. In summary they include the
following:
<<
- The variation in NPV with discount factors (Table 6)
- The variation in NPV based on single parameter sensitivities (Table
7). The sensitivity of the project to changes in gold price or head
grade can be seen in the variation of revenue. The sensitivity to
variations in operating cost and capital expenditure is also
presented
- The variation in NPV based on twin (revenue and operating
expenditure) sensitivities (Table 8)
- The variation in NPV based on twin (gold price and exchange rate)
sensitivities (Table 9).
Table 6: Modder East Project - variation of Real NPV with discount
factors
-------------------------------------------------------------------------
Discount
Factor NPV (US$m)
---------------------------------------------------------------
Valuation Basis Alternative Scenarios
US$629/oz Au US$500/oz Au US$629/oz Au US$758/oz Au
ZAR6.585 ZAR7.00 ZAR7.00 ZAR7.00
(%) equals US$1.00 equals US$1.00 equals US$1.00 equals US$1.00
-------------------------------------------------------------------------
0% 156.9 92.9 170.3 246.2
2% 130.2 75.1 142.2 207.8
4% 108.0 60.2 118.8 175.8
6% 89.5 47.9 99.3 149.1
8% 74.0 37.6 82.9 126.6
10% 61.0 28.9 69.1 107.6
12% 49.9 21.7 57.4 91.6
-------------------------------------------------------------------------
Table 7: Modder East Project - Real NPV, single parameter sensitivity
-------------------------------------------------------------------------
Sensitivity Range
- Revenue -30% -20% -10% 0% 10% 20% 30%
Sensitivity Range
- Working Costs -15% -10% -5% 0% 5% 10% 15%
Sensitivity Range
- Capital -15% -10% -5% 0% 5% 10% 15%
Currency (US$m) (US$m) (US$m) (US$m) (US$m) (US$m) (US$m)
-------------------------------------------------------------------------
Variation in NPV
at 0% DCF
Revenue 37.7 77.8 117.5 156.9 196.7 235.3 273.9
Total Working
Costs 204.8 189.2 172.5 156.9 141.3 124.9 109.1
Capital 178.9 172.0 165.1 156.9 149.9 141.9 134.9
-------------------------------------------------------------------------
Variation in NPV
at 8% DCF
Revenue 3.7 27.6 51.0 74.0 97.2 119.3 141.5
Total Working
Costs 100.8 92.2 82.7 74.0 65.3 56.1 47.2
Capital 92.8 86.9 80.9 74.0 67.9 61.1 54.7
-------------------------------------------------------------------------
Table 8: Modder East Project - Real NPV sensitivity, varying twin
parameter at 8% discount
-------------------------------------------------------------------------
NPV (US$m) Revenue Sensitivity
-30% -20% -10% 0% 10% 20% 30%
-------------------------------------------------
-15% 18.0 41.5 64.7 87.3 110.1 132.2 154.4
-10% 13.5 37.1 60.3 82.7 105.8 127.9 150.1
-5% 8.9 32.7 55.4 78.4 101.5 123.6 145.8
TWC
Sensitivity 0% 3.7 27.6 51.0 74.0 97.2 119.3 141.5
5% (1.2) 23.1 46.6 69.7 92.9 115.0 137.2
10% (6.2) 18.6 42.1 65.3 88.6 110.7 132.9
15% (11.3) 13.9 37.7 61.0 83.9 106.4 128.6
-------------------------------------------------------------------------
Table 9: Modder East - Real NPV sensitivity, varying twin parameter at 8%
discount
-------------------------------------------------------------------------
NPV (US$m) Gold Price Sensitivity
503 535 566 598 629
-20.0% -15.0% -10.0% -5.0% 0.0%
----------------------------------------
Exchange Rate 5.597 -15.0% 2.8 14.8 25.9 37.6 48.5
Sensitivity 5.927 -10.0% 13.3 24.4 36.1 47.0 57.9
6.256 -5.0% 21.9 33.6 44.4 55.3 66.7
6.585 0.0% 29.9 41.1 52.0 63.3 74.0
6.914 5.0% 37.0 47.9 59.2 70.0 80.9
7.244 10.0% 43.2 54.6 65.3 76.1 87.4
7.573 15.0% 48.9 60.1 70.8 82.2 92.8
-------------------------------------------------------------------------
-----------------------------------------------------------------
NPV (US$m) Gold Price Sensitivity
660 692 723 755
5.0% 10.0% 15.0% 20.0%
--------------------------------
Exchange Rate 5.597 -15.0% 59.4 70.9 81.6 92.3
Sensitivity 5.927 -10.0% 69.3 80.0 90.7 102.3
6.256 -5.0% 77.4 88.3 99.7 110.3
6.585 0.0% 85.0 96.2 106.8 117.4
6.914 5.0% 92.1 102.7 113.3 123.9
7.244 10.0% 98.0 108.6 119.2 129.8
7.573 15.0% 103.4 114.0 124.6 135.2
-----------------------------------------------------------------
>>
Mining Rights
Aflease Gold is in possession of an old order mining right (mining
licence ML15/2004), which is valid until April 29, 2009. Aflease Gold is
compiling an application for the conversion of its old order mining right to a
new order mining right in terms of the Minerals and Petroleum Resources
Development Act No 28 of 2002 ("MPRDA") and expects to submit that application
before the end of 2006. It is expected that the new order mining right will be
granted within the available time period.
A temporary water use licence has been approved for the development of
the portal. An application for the required permanent water use licence will
be submitted before the temporary water use licence expires.
The surface rights for the project have been secured and accommodate the
Modder East project as contemplated in the feasibility study.
Qualified Person
HG (Wally) Waldeck, a Partner with SRK, is the Qualified Person for the
purposes of NI 43-101 and has audited all information relating to the
feasibility study and has reviewed the contents of this news release.
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
Johannesburg Stock Exchange. The Corporation owns the Dominion Reefs Uranium
Mine in South Africa and the Honeymoon Uranium Project in South Australia, as
well as a number of exploration projects. The Corporation holds an approximate
75% 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.
About Aflease Gold
Aflease Gold Limited was formed on January 23, 2006 through the reverse
takeover of Sub Nigel Gold Mining Company Ltd. by New Kleinfontein Mining
Company Ltd. a wholly owned subsidiary of Aflease Gold and Uranium Resources
Ltd. The company is listed on the Johannesburg Stock Exchange and is owned as
to approximately 75% by sxr Uranium One Inc.
Forward-looking statements: Certain of the statements made herein,
including any information as to the Corporation's future financial or
operating performance, may be forward-looking and subject to important risk
factors and uncertainties, many of which are beyond the Corporation's ability
to control or predict. Forward-looking statements are necessarily based on a
number of estimates and assumptions that are inherently subject to significant
business, economic and competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include, among
others: gold price volatility; impact of any hedging activities, including
margin limits and margin calls; discrepancies between actual and estimated
production, between actual and estimated reserves and resources and between
actual and estimated metallurgical recoveries; changes in national and local
government legislation, taxation, controls, regulations and political or
economic developments in South Africa or other countries in which the
Corporation does or may carry on business in the future; risks of sovereign
investment; the speculative nature of gold exploration and development,
including the risks of obtaining necessary licenses and permits; dilution;
competition; loss of key employees; additional funding requirements; and
defective title to mineral claims or property. In addition, there are risks
and hazards associated with the business of gold exploration, development and
mining, including, among others, environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and gold
bullion losses (and the risk of inadequate insurance or inability to obtain
insurance, to cover these risks). Accordingly, readers should not place undue
reliance on forward-looking statements. The Corporation undertakes no
obligation to update publicly or release any revisions to forward-looking
statements to reflect events or circumstances after the date of this document
or to reflect the occurrence of unanticipated events. Investors are advised to
refer to competent persons reports on the Corporation's material properties
for detailed information with respect to such properties, which information is
subject to the qualifications and notes set forth therein. This presentation
uses the terms "indicated" and "inferred" resources as defined in accordance
with the SAMREC Code. United States investors are advised that while these
terms are recognized and required by South African regulations, the SEC does
not recognize them. 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 and it cannot be
assumed that all or any part of an inferred mineral resource will be ever be
upgraded to a higher category. Investors are cautioned not to assume that all
or any part of an inferred resource exists or is economically or legally
mineable. Mineral resources are not mineral reserves and do not have
demonstrated economic viability. Scientific and technical information
contained herein has been reviewed by Mr. H.G. (Wally) Waldeck (PrEng (ECSA),
FSAIMM, AMAMMSA, BSc(Eng), (MBA), Partner and Principal Mining Engineer with
SRK.
%SEDAR: 00005203E
