TORONTO, ON, and JOHANNESBURG, South Africa, June 14 /CNW/ - sxr Uranium
One Inc. is pleased to announce that it has compiled a revised mineral
resource estimation for its Dominion Uranium Project in South Africa, which
shows a significant increase in indicated and inferred uranium and gold
resources over the estimates reported in December 2005.
The revised mineral resource estimate will be incorporated into the
Dominion Uranium Project feasibility study currently being finalized by the
Corporation's independent geotechnical consultants, SRK Consulting. The
Dominion feasibility study is expected, subject to the completion of the
independent review, to be released by mid-July 2006.
Revised Mineral Resource Estimate
The revised mineral resource estimate shows a uranium resource of
47,492,142 pounds U(3)O(8) in the indicated category and 199,193,598 pounds
U(3)O(8) in the inferred category. This represents a 195% increase in
indicated resources and a 36% increase in inferred resources over the
estimates contained in the December 2005 independent technical report on the
Dominion property prepared by SRK Consulting (available on SEDAR). The average
grade of the uranium resource has decreased from 0.99 kg/t to 0.83 kg/t in the
indicated category and from 0.66 kg/t to 0.51 kg/t in the inferred category.
The decrease in the average grade of the indicated uranium resource is not
considered significant in view of the fact that selective mining will take
place in the identified pay-shoot areas.
In addition, the revised resource estimate shows a gold resource at
Dominion of 910,821 ounces in the indicated category (a 163% increase from the
346,000 ounces previously reported) and 3,613,908 ounces in the inferred
category (a 63% increase from the 2,213,000 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
(June 2006)(1)
Indicated Mineral Resources
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Reef Unit Tonnes U(3)O(8) Contained Gold Grade Contained
(thousands) Grade U(3)O(8) (g/tonne) Gold
(kg/tonne) (k/lbs) (k/oz)
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Rietkuil Upper 8,575 0.78 14,721 0.89 245
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Rietkuil Lower 1,194 1.02 2,694 0.79 30
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Dominion Upper 11,240 0.83 20,652 0.99 358
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Dominion Lower 4,981 0.86 9,425 1.73 277
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Total Indicated 25,990 0.83 47,492 1.09 910
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Inferred Mineral Resources
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Reef Unit Tonnes U(3)O(8) Contained Gold Grade Contained
(thousands) Grade U(3)O(8) (g/tonne) Gold
(kg/tonne) (k/lbs) (k/oz)
-------------------------------------------------------------------------
Rietkuil Upper 52,949 0.52 61,096 0.39 664
-------------------------------------------------------------------------
Rietkuil Lower 39,076 0.75 64,214 0.81 1,018
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Dominion Upper 54,977 0.35 42,713 0.55 972
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Dominion Lower 31,420 0.45 31,171 0.95 960
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Total Inferred 178,422 0.51 199,194 0.63 3,614
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(1) Mineral resource estimated by Dr. Carina Lemmer of Geological &
Geostatistical Services and reported to a cut-off of 29 cmkg/t
U(3)O(8) for Dominion and 35 cmkg/t U(3)O(8) for Rietkuil 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 and gold resources reflects the results of an
extensive program of surface diamond drilling carried out at the Dominion
property in 2005 and 2006 (to April 15, 2006) and to a smaller extent, a lower
uranium cut-off grade as a result of continuing increases in the uranium price
and the by-product gold credits.
The diamond drilling program has facilitated geological modelling and
enhanced confidence in the associated geo-domaining of the Dominion orebody
for resource estimation purposes.
Information derived from the 2005-2006 program has also enabled the
Corporation to more accurately interpret historic drilling results, allowing
for the interpolation (kriging) of geo-domain variables (including mineralized
width and accumulation) within both the indicated and inferred resource areas.
The uranium resources have been estimated using ordinary kriging in the
indicated resource areas; over the much larger domain of the inferred
resources, the geological homogeneity is considered sufficient to apply simple
kriging. Mean values for panels of 200m X 200m were kriged in all indicated
resource areas, based on data limited to a maximum mining width of 160 cm;
kriging in the inferred resource areas was based on the full channel width of
each reef.
The variations in cut-off values from 49 cmkg/t U(3)O(8) for both
Dominion and Rietkuil in December 2005 to 29 cmkg/t U(3)O(8) for Dominion and
35 cmkg/t U(3)O(8) for Rietkuil in June 2006 reflect changes in the metal
prices used to calculate the appropriate cut-offs (to US $45/lb for U(3)O(8)
and US $528/oz for gold) and the influence of by-product gold values included
in the cut-off determination not previously considered. Resource
classification was based largely on data quality, density and statistical
parameters.
The 0.16 kg/t decrease in the average grade of the indicated uranium
resource reflects a lower cut-off grade as a result of an increase in the
uranium price and the inclusion of gold credits. The mineral content to be
mined from the indicated resource has been optimised by applying a maximum
mining width of 160 cm across the deposit in areas where the channel width
exceeds this. The 0.15 kg/t decrease in average grade of the inferred uranium
resource is also not considered significant in light of the ongoing and
planned additional drilling at the project.
Said Uranium One's President and CEO, Neal Froneman: "The continuing
increase in the uranium resources at the Dominion Project is very gratifying.
It provides a solid foundation for the Dominion feasibility study and I am
hopeful that the additional drilling taking place and planned at this
world-class resource will result in the delineation over time of an even
larger uranium resource. The indicated uranium grade, while somewhat reduced
from the December estimate, remains above the level we have been using in our
mining plans and financial models. This bodes well for Dominion, which remains
on track to begin producing uranium oxide in the first quarter of 2007."
The revised resource estimate was prepared by Dr. Carina Lemmer of
Geological & Geostatistical Services, independent geoscience consultants to
the Corporation. The underlying geological modelling was conducted by Dr.
Richard Stewart, Pr.Sci.Nat. (SACNASP), MGSSA, Regional Exploration Geologist
for Uranium One. Each of Dr. Lemmer and Dr. Stewart is a qualified person for
the purposes of NI 43-101.
The revised resource estimate has been audited by SRK Consulting and will
be contained in an independent technical report being prepared by SRK
Consulting for filing in accordance with the requirements of NI 43-101.
2005-2006 Drilling Program
The revised resource estimate reflects the results of the 2005 drilling
campaign (from May 6, 2005 to November 30, 2005) and the 2006 drilling
campaign (from December 1, 2005 to April 15, 2006). Over the period from May
6, 2005 to April 15, 2006, 105 BQ and NQ-calibre diamond drill holes
(totalling 27,779 metres of drilling, including 2,534 metres of deflections)
have been drilled in the Rietkuil No. 1, 2 and 3 sections and the Dominion No.
1 and 2 sections of the Dominion property.
Of the 105 holes, 3 were stopped prior to any reef intersection and a
further 14 intersected either faulting or failed to intersect reef. As of
April 15, 2006, assay values have been obtained for 88 of the boreholes. These
holes, which have been drilled to an average depth of 240 metres, have yielded
a total of 254 reef intersections (including deflections), comprising 81 Upper
Reef and 51 Lower Reef intersections in the Rietkuil section and 71 Upper Reef
and 51 Lower Reef intersections in the Dominion section. A map of the drill
hole locations and the assay results from these boreholes are available on the
Corporation's website (www.uranium1.com).
The assay results obtained to date from the current drilling program have
confirmed the validity and reliability of the historical information used in
the earlier geological modelling and subsequent resource estimations. The
results have also facilitated the modelling and confirmation of grade
fingerprinting for regional geological domains, enhancing confident grade
predictions.
Drilling is currently ongoing, with a further 35,000 metres of drilling
scheduled for the remainder of 2006. The objective of this program is to
delineate the down-dip extensions of identified high grade zones. 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.
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, Vice
President, Geology and Exploration, 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 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.
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
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. A mineral resource
is a concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the earth's crust in such form and quantity and of
such a grade or quality that it has reasonable prospects for economic
extraction. The location, quantity, grade, geological characteristics and
continuity of a mineral resource are known, estimated or interpreted from
specific geological evidence and knowledge. A measured mineral resource is
that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of technical and
economic parameters to support mine planning and evaluation of the economic
viability of the deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes that are spaced closely enough to confirm both geological and grade
continuity. An indicated mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters to
support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably assumed. An
inferred mineral resource is that part of a mineral resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited exploration
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. Mineral resources which
are not mineral reserves do not have demonstrated economic viability.
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.
To receive the Corporation's news releases by email, contact John Fraser,
Corporate Communications at john(at)uranium1.com or Chris Sattler, Vice
President, Investor Relations, at chris(at)uranium1.com. The TSX has neither
approved nor disapproved of the information contained herein.
%SEDAR: 00005203E
