Trading Symbol: SXR - The Toronto Stock Exchange
TORONTO and JOHANNESBURG, South Africa, May 15 /CNW/ - sxr Uranium One
Inc. today reported its 2006 first quarter financial results. All figures are
in US dollars unless otherwise indicated.
Complete details of the consolidated financial statements and
Management's Discussion and Analysis for the three months ended March 31,
2006, can be found on Uranium One's website at www.uranium1.com as well as on
SEDAR at www.sedar.com.
Highlights of the first quarter of 2006 include:
- further investment of $13 million in the development of the Dominion
Uranium Project
- increase of $33 million in non-current assets primarily as a result
of the formation of Aflease Gold Limited
- realization of $8.1 million profit from the sale of 20% of New
Kleinfontein Mining Company Limited in connection with the formation
of Aflease Gold Limited
- operating loss of $9.6 million in line with Uranium One's
expectations comprising $2.4 million from gold production,
$1.5 million of G&A, $2.6 million of exploration expenditure and
$3.2 million of share option expenses
- completed a $140 million net proceeds capital raising for the
Dominion Uranium Project
- revised resource declaration at Dominion, increasing indicated U3O8
resources to 16.1 million lbs. and increasing inferred U3O8 resources
to 146.6 million lbs.
- revised reserve and resource declaration at Modder East, increasing
gold reserves to 1.3 million ounces in the probable category, and
increasing indicated gold resources to 2.0 million ounces and
inferred gold resources to 1.0 million ounces
- continued progress on feasibility studies for the Dominion Uranium
Project, the Honeymoon Uranium Project and the Modder East Gold
Project
Commenting on the Corporation's results, Neal Froneman, President and
Chief Executive Officer of Uranium One, said: "This was a very significant
quarter for Uranium One. Early in the quarter, we declared a significant
increase in our uranium resources at Dominion, including a substantial
increase in the indicated resource grade. Our 79% owned subsidiary, Aflease
Gold, also declared a significant increase in gold reserves and resources at
Modder East. In February, we completed a substantial financing of
$140 million. This enabled us to continue fast-tracking the Dominion Project,
which is on schedule to begin production of uranium in the first quarter of
2007. In addition, during the quarter, our technical teams also continued to
progress feasibility studies for our key projects - Dominion, the Honeymoon
Uranium Project and Modder East. I look forward to continued development at
Dominion and to bringing Honeymoon and Modder East to production decisions
following completion of the feasibility studies."
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 79% 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 note concerning forward-looking statements and disclosure of
estimates of mineral resources: 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)uranium1.com or Don Falconer,
Investor Relations, at don(at)uranium1.com. The TSX has neither approved
nor disapproved of the information contained herein.
%SEDAR: 00005203E
