Trading Symbol: SXR - Toronto Stock Exchange, Johannesburg Stock Exchange
TORONTO, and JOHANNESBURG, South Africa, Aug. 14 /CNW/ - sxr Uranium One
Inc. ("Uranium One") today reported that its majority-owned subsidiary Aflease
Gold Ltd. ("Aflease Gold") has announced its unaudited interim results for the
12 months ended June 30, 2006. The interim results are for the 12 month period
due to a financial year end change to December 31, 2006.
For the 12 months ended June 30, 2006, Aflease Gold reported a net loss
of ZAR9.3 million, or 2.41 cents a share compared with a loss of
ZAR1.2 million, or 0.36 cents a share in the 12 months to June 30, 2005. The
increased loss results from the company moving into an aggressive exploration
and development phase with primary focus on the Modder East feasibility study
and more recently the bulk earthworks and construction of the Modder East
portal.
During the 12 months ended June 30, 2006, Aflease Gold incurred general
and administrative expenditures of ZAR4.2 million, compared with
ZAR694 thousand in the 12 months to June 30, 2005, and exploration and
associated costs of ZAR5.1 million, compared with ZAR13 thousand in the prior
period. The increase in expenditure over the most recent period related mainly
to costs associated with completing the Modder East feasibility study,
exploration on the East Rand assets, and the sourcing of additional managerial
and technical capacity in order to develop Modder East and deliver on
exploration projects.
Subsequent to the reorganization of Aflease Gold in January 2006, the
company raised approximately ZAR36.1 million through the issuance of Aflease
Gold shares, resulting in Uranium One's equity interest decreasing by
approximately 5% to approximately 75% as at June 30, 2006.
Said Neal Froneman, President and CEO of Aflease Gold and Uranium One:
"Aflease Gold has been very active since its formation in January 2006.
The company continues to make excellent progress on the initial phase of
construction at its Modder East Gold Project and is scheduled to announce the
results of the audited feasibility study for this project later this week. In
line with the company's aggressive growth strategy, exploration has begun at
Sub Nigel (Spaarwater) and Etendeka in Namibia."
As at August 11, 2006 the exchange rate was US$1(equal sign)ZAR6.7705.
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 Uranium Project
in South Africa and the Honeymoon Uranium Project in South Australia, as well
as a number of exploration projects. The Corporation holds a 75% interest in
Aflease Gold, 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 Ltd. was reorganized 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 owns the Modder East Gold Project in South Africa, as well as
a portfolio of other gold projects elsewhere in South Africa and at Etendeka
in Namibia. The ordinary shares of the company are 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.
%SEDAR: 00005203E
