TORONTO, and JOHANNESBURG, SOUTH AFRICA, Sept. 25 /CNW/ - sxr Uranium One
Inc. is pleased to provide an update on the results of its resource
delineation and exploration activities at the Dominion Uranium Project in
South Africa for the period from April 15 to September 8, 2006.
Prior to April 15, 2006, Uranium One completed drill programs comprising
some 105 BQ and NQ calibre drill holes, totalling 27,779 metres of drilling,
including 2,534 metres of deflections. This drilling focused primarily on
defining the shallow (less than 500 metres) resource in the Rietkuil 1 and
Dominion 1 and 2 areas. The results of these drill programs were reflected in
the revised Dominion resource estimate announced by the Company on June 14,
2006 and described in more detail in an independent technical report prepared
by SRK Consulting and filed on SEDAR on July 24, 2006 (also available on the
Company's website at www.uranium1.com).
During the period from April 15 to September 8, 2006, drilling activities
focused on the delineation of additional resources in the down-dip extension
of known ore-shoots in the Rietkuil 1 and Dominion 1 and 2 decline areas and
the identification of new ore-shoots in the remaining target area. 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. During this period, a total of 78 boreholes (32,585 metres) have
been drilled, 40 at Rietkuil and 38 at Dominion. Assay values from 21 of these
boreholes have been received; assay results from 44 boreholes are pending and
are expected by the end of October. Thirteen boreholes consisted either of
faulted reef intersections (not sampled) or areas of no reef development.
Assay results for six of the Rietkuil ore-shoot boreholes (9 reef
intersections) have indicated Upper Reef values ranging between 0.79 kg/tonne
(over 160 cm composite width) to 2.18 kg/tonne (over 100 cm composite width).
At Dominion, assay results for four boreholes (6 reef intersections) drilled
in the ore-shoot have indicated Upper Reef values ranging between
0.40 kg/tonne and 0.81 kg/tonne (both over 160 cm composite width). These
results confirm the Company's modelling and grade predictions. In addition,
previously defined geological domains have been refined and extrapolated based
on the new drilling information.
Drilling in this period also commenced in a new area (Dominion 3),
located approximately 3 km north of the Dominion 2 decline. Drilling at
Dominion 3 is aimed at determining the resource potential associated with a
possible new decline. In this area, a thick sedimentary sequence (attaining
thicknesses of 15 m), containing well developed Lower, Middle and Upper Reef
is present. Initial assay results have been encouraging, with three Lower Reef
intersections from 2 boreholes, and 1 borehole containing faulted Lower Reef,
showing values ranging between 0.12 kg/tonne and 4.67 kg/tonne (over 100 cm
composite width) and five Upper Reef intersections in the same 3 boreholes
showing grades ranging from 0.25 kg/tonne (over 144 cm composite width) to
0.45 kg/tonne (over 160 cm composite width). In light of these results, the
Company intends to continue with drilling in the Dominion 3 area to further
assess the resource potential.
Since April 15, 2006, the number of diamond drill rigs on site has
increased to 23; of these, 17 are currently dedicated to the Dominion and
Rietkuil sections. Drilling at the Dominion Uranium Project is currently
proceeding at the rate of approximately 7,500 metres per month, with a further
20,000 metres of drilling scheduled for the remainder of 2006. Drilling to
year end will continue to focus on delineating the down-dip extensions of
identified ore-shoots, as well as further exploration in the Dominion 3 area.
A map of the drill hole locations and a table of drill results for the
drilling completed during the April 15 to September 8, 2006 period are also
available on the Corporation's website.
Quality Assurance and Quality Control
The Dominion Uranium Project drilling program is being carried out under
the direction of Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Vice
President, Geology and Exploration, sxr Uranium One Inc., and Dr. R.A.
Stewart, Pr.Sci.Nat. (SACNASP), MGSSA, Regional Exploration Manager, sxr
Uranium One Inc., both 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. 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 SANAS and ISO/IEC 17025. Gold assays are performed
using conventional fire assay procedures with an inductively coupled plasma
optical-emission spectroscopic ("ICP-OES") finish on 50g aliquots, 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.
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
JSE Limited (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 an approximate 71% 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.
Cautionary Statement
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
This News Release includes certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
legislation. All statements other than statements of historical fact included
in this release including, without limitation, statements regarding potential
mineralization and reserves and future plans and objectives of Uranium One,
are forward-looking statements (or forward-looking information) that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors could cause actual results to differ materially from Uranium One's
expectations. Such factors include, among others, the actual results of
exploration activities, actual results of reclamation activities, the
estimation or realization of mineral reserves and resources, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
availability of capital required to place Uranium One's properties into
production, conclusions of economic evaluations, changes in project parameters
as plans continue to be refined, future prices of commodities, possible
variations in ore grade or recovery rates, failure of plant, equipment or
processes to operate as anticipated, accidents, labour disputes and other
risks of the mining industry, delays in obtaining governmental approvals,
permits or financing or in the completion of development or construction
activities, Uranium One's hedging practices, currency fluctuations, title
disputes or claims limitations on insurance coverage, as well as those factors
discussed under "Risk Factors" in Uranium One's Annual Information Form and
Management's Discussion and Analysis as filed with securities regulatory
authorities in Canada. Although Uranium One has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated or
intended.
There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Uranium One does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.
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.
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