Trading Symbol (TSXV: UUU and AIM: UUU)
VANCOUVER, Nov. 14 /CNW/ - UrAsia Energy Ltd. (the "Company" or "UrAsia")
is pleased to provide an update on the construction progress at the South
Inkai and Kharassan uranium projects in the Republic of Kazakhstan. The
Company has a 70% interest in the Betpak Dala Joint Venture, which has a 100%
interest in the South Inkai uranium project "South Inkai" and the Akdala
uranium mine "Akdala". In addition, the Company has a 30% interest in the
Kyzylkum Joint Venture, which has a 100% interest in the Kharassan uranium
project "Kharassan".
South Inkai Construction Progress
South Inkai is located in the Suzak region of the South Kazakhstan
Oblast, approximately 500km northwest of Shymkent. Planned start-up of
production activities is scheduled in the fourth quarter of 2007.
<<
- Construction of the industrial plant complex by contractor Kaz
High Tech Euro Building has commenced and the earthwork
(excavation) and concrete foundations necessary for five main
buildings is complete. Completion of the steel erection work is
planned for January.
- Earthwork (excavation) and foundation construction of the main
process plant building by contractor South Kazakhstan Building
Authority is 90% complete and is expected to be finished by
November
- Full delivery of the main process plant equipment is expected in
December
- Earthmoving (excavation) has been completed for the pregnant
solution ponds
- Six buildings currently under construction are expected to be
enclosed by January, prior to the winter season in Central Asia
- Three additional buildings and a sulphuric acid storage facility
have been contracted for construction by South Kazakhstan Building
Authority, foundations are expected to be completed by January
- Exploration drilling by Volkovgeology has commenced at South Inkai
to convert 8,000 metric tonnes U of Inferred Mineral Resource to
Indicated Mineral Resource. The completion of 140 drill holes is
expected by the end of November.
- Seven drill rigs operated by Joint Drilling Company are expected
to commence the installation of production and injection wells in
January (two of the seven rigs will be new US built and designed
GEFCO, SS-40 trailer mounted rotary table rigs)
>>
Kharassan Construction Progress
The Kharassan development project is located in the Suzak region of the
South Kazakhstan Oblast, approximately 250km northwest of Shymkent. Planned
start-up of production activities is scheduled in the fourth quarter of 2007.
<<
- Construction of the main plant site has commenced, floor and
equipment foundations were completed in October and major process
equipment is currently being set in place
- Six ion-exchange columns have been mounted and the remaining
elution and de-nitrification columns are expected to be
constructed by the end of November
- Five main buildings, including the main plant building are
expected to have siding and roofing installed by December. The
main office building was completed in October.
- Earthwork (excavation) for the pregnant solution pond is complete
and a single collector pond is expected to be finished by
December.
- Conversion of Russian P1 resources (necessary in order to meet CIM
standards on Mineral Resource and Reserve definitions) commenced
in October, the work is being carried out by Volkovgeology
- Joint Drilling Company LLP will supply the Kyzylkum Joint Venture
with five drill rigs in January to begin the installation of
production and injection wells
- An additional four US built and designed GEFCO SS-40 rigs are
expected to be on site in the first half of 2007 to perform both
well installation and exploration drilling (resource conversion)
work
- Current infrastructure projects include the new paved road to the
city of Zhanakorgan and the construction of a bridge across the
Syr-Darya River. Installation of the main bridge supports within
the river, which is now at its lowest level, are expected to be
completed by December.
>>
Akdala Process Plant Upgrades
<<
- Under a contract with the Institute of High Technology in the
Republic of Kazakhstan, the design of precipitation and drying
facilities in the main plant are targeted for completion in
December
- The new facilities, planned for operation at the end of the year,
will reduce the cost of transportation and contracted processing
fees
>>
The Akdala mine is currently producing 2,600,000 pounds U(3)O(8) per
year. The production rate was reached ahead of schedule in April this year.
UrAsia's attributable share of production is 1,800,000 pounds U(3)O(8).
Commenting on the construction progress at South Inkai and Kharassan,
Phillip Shirvington, President and Chief Executive Officer, said "UrAsia has
achieved some significant milestones since it acquired its interest in both
the South Inkai and Kharassan projects a year ago. Site construction at South
Inkai and Kharassan commenced on schedule; exploration drilling is progressing
well following the successful formation of Joint Drilling Company LLP; and
plans to improve and upgrade the infrastructure at Kharassan have been
implemented. The primary objective is to ensure that we are able to start-up
production activities at both South Inkai and Kharassan in the fourth quarter
of 2007, as planned, and to continue to optimise our operations at Akdala."
UrAsia is a Canadian-based uranium producer that offers investors
exposure to low-cost, uranium production and growth. The Company creates
shareholder value by focusing on the development and operation of low-cost,
in-situ leach uranium projects in Central Asia.
UrAsia is listed on the TSX Venture Exchange and the Alternative
Investment Market (AIM) of the London Stock Exchange, trading under the symbol
UUU on both exchanges.
On behalf of UrAsia Energy Ltd.
"Phillip Shirvington"
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The foregoing
information may contain forward-looking statements relating to the future
performance of UrAsia Energy Ltd. Forward-looking statements, specifically
those concerning future performance, are subject to certain risks and
uncertainties, and actual results may differ materially. These risks and
uncertainties are detailed from time to time in the Company's filings with the
appropriate securities commissions.
