Uranium One Announces 8% Increase in 2013 Production to 13.2 Million Pounds and Updated Mineral Reserve and Resource Estimates for the South Inkai Mine

TORONTO, Feb. 25, 2014 /CNW/ - Uranium One Inc. ("Uranium One") today announced attributable production of 13.2 million pounds for the full year 2013.

Uranium One also announced today new and significantly increased mineral resource and reserve estimates for its South Inkai uranium mine in Kazakhstan, including a 429% increase in measured and indicated resources.

Production

Attributable production for 2013 increased by approximately 8% to a record of 13.2 million pounds U3O8 compared to 12.2 million pounds produced in 2012.

A breakdown of Uranium One's attributable production for the full year 2013 is shown below.

Table 1 - Uranium One Attributable Production (million pounds U3O8)

Mine Fiscal Year 2013
Akdala 1.9
South Inkai 3.7
Karatau 2.8
Akbastau 1.9
Zarechnoye 1.2
Kharasan 0.6
Willow Creek 0.9
Honeymoon(1) 0.2
Total 13.2
(1)      Production in commissioning from Honeymoon was 0.2 million pounds during 2013. The Honeymoon Mine was placed on care and maintenance in November 2013.
   

Updated Mineral Reserve and Resource Estimates for the South Inkai Uranium Mine

As at December 31, 2013, the total attributable reserves and resources at the Company's South Inkai mine in Kazakhstan increased as follows:

  • the Company's attributable share of proven and probable reserves increased by 282%, from 9.24 million lbs U3O8 (3,554 t U) to 35.34 million lbs U3O8 (13,593 t U);

  • the Company's attributable share of measured and indicated resources increased by 429%, from 10.27 million lbs U3O8 (3,949 t U) to 54.36 million lbs U3O8 (20,911 t U); and

  • the Company's attributable share of inferred resources increased by 58%, from 31.12 million lbs U3O8 (11,969 t U) to 49.08 million lbs U3O8 (18,877 t U).

The new estimates, finalized in late January 2014 following review and verification by the Company's Qualified Person, result from the application of 3D modeling techniques to an extensive database of Kazakh Government drilling information which was made available to the Company for the first time.

Further information, including a breakdown of mineral resource and reserve estimates for South Inkai, is attached as Appendix A to this news release.

About Uranium One

Uranium One is one of the world's largest uranium producers with a globally diversified portfolio of assets located in Kazakhstan, the United States, Australia and Tanzania. ROSATOM State Atomic Energy Corporation, through its affiliates, owns 100% of the outstanding common shares of Uranium One.

Cautionary Statements

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Scientific and technical information contained herein has been reviewed on behalf of the Corporation by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, Senior Vice President New Business and Technical Services of the Corporation, a qualified person for the purposes of NI 43-101.

Investors are advised to refer to independent technical reports containing detailed information with respect to the material properties of Uranium One. These technical reports are available under the profile of Uranium One Inc. at www.sedar.com. Those technical reports provide the date of each resource or reserve estimate, details of the key assumptions, methods and parameters used in the estimates, details of quantity and grade or quality of each resource or reserve and a general discussion of the extent to which the estimate may be materially affected by any known environmental, permitting, legal, taxation, socio-political, marketing, or other relevant issues. The technical reports also provide information with respect to data verification in the estimation.

Forward-looking statements: This news release contains certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the price of uranium, the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, the timing and potential effects of proposed transactions, title disputes or claims, limitations on insurance coverage, and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Uranium One to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the completion of proposed transactions, the future steady state production and cash costs of Uranium One, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities, risks relating to the integration of acquisitions and the realization of synergies relating thereto, to international operations, to prices of uranium as well as those factors referred to in the section entitled "Risk Factors" in Uranium One's Annual Information Form for the year ended December 31, 2012, which is available under Uranium One's profile on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although Uranium One has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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 expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

For further information about Uranium One, please visit www.uranium1.com.

APPENDIX A

URANIUM ONE INC.
MINERAL RESOURCES AND MINERAL RESERVES FOR SOUTH INKAI MINE
AT DECEMBER 31, 2013

Mine / Area
(Attributable %)
Location
Type of Mine
Category Tonnes Grade Uranium Grade Uranium
    (000s) (%U) (t U) (% U3O8) (M lbs U3O8)
100% Attributable 100% Attributable
South Inkai
(70%)
Kazakhstan
ISL
               
Measured 42,925 0.025 10,814 7,570 0.030 28.1 19.7
Indicated 46,116 0.041 19,059 13,341 0.049 49.6 34.7
Measured &
Indicated
89,041 0.034 29,873 20,911 0.040 77.7 54.4
Inferred 69,604 0.039 26,967 18,877 0.046 70.1 49.1
Proven 81,372 0.012 9,733 6,813 0.014 25.3 17.7
Probable 55,272 0.018 9,686 6,780 0.021 25.2 17.6
Proven &
Probable
136,644 0.014 19,419 13,593 0.017 50.5 35.3

Notes:

(1)      Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to their economic feasibility.  Under no circumstances can it be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher Mineral Resource category or converted to Mineral Reserves.
(2)      All Mineral Resources and Mineral Reserves are reported in accordance with the definitions and guidelines for the reporting of exploration information, Mineral Resources and Mineral Reserves determined by the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council (the "CIM Standards") and National Instrument 43-101 - Standards of Disclosure for Mineral Projects promulgated by the Canadian Securities Administrators ("NI 43-101").  Unless otherwise stated, for each project the Mineral Reserves stated above are included in the total estimate of Mineral Resources as stated above. All figures are rounded to reflect appropriate levels of confidence. Columns may not add up correctly due to rounding.
(3)      The above estimates are reported both on a 100% basis and on the basis of the portion of total Mineral Reserves and/or Mineral Resources notionally attributable to Uranium One's equity interest in the joint venture through which South Inkai mine in Kazakhstan is owned.  Uranium One's interest in South Inkai is 70%.
(4)      Mineral Resources based on 0.08 m% (grade x thickness) cut-off per hole.
(5)      Mineral Resources and Mineral Reserves based on bulk density of 1.70 t/m3.
(6)      Depletion estimated using losses of 10%.
(7)      Measured Mineral Resources based on regular exploration drilling density of 50 m x 200 m (excluding residual and rear wing mineralized bodies).
(8)      Indicated Mineral Resources based on regular exploration drilling density up to 50-100 m x 800 m (excluding residual mineralized bodies) and 50 m x 200 m for residual mineralized bodies.
(9)      Inferred Mineral Resources are based on exploration drilling density of 50-300 m x 400-800 m (excluding residual mineralized bodies) and up to 50-100 m x 800 m for residual mineralized bodies.
(10)      Mineral Resources include Mineral Reserves.
(11)      Mineral Reserves are estimated at a cut-off of 0.08 m%.
(12)      Mineral Reserves are estimated using an average long-term uranium price of US$65 per pound U3O8 (US$169/kg U).
(13)      Uranium quantities and grade for Mineral Reserves are net of extraction.

Mineral Resource and Reserve Estimation

In September 2013, CSA Global Pty Ltd. ("CSA") was engaged by Uranium One to prepare new resource and reserve estimates for South Inkai following the provision by the Government of Kazakhstan for the first time of an extensive database of previously unavailable drilling data. Previously, estimates for the Company's mines in Kazakhstan were prepared in accordance with the Russian resource classification system (using a 2D polygonal geological modelling and estimation process) and then converted to the CIM resource classification system.  Direct access to the raw drilling data enabled the preparation for the first time of resource and reserve estimates at South Inkai using the application of internationally recognized and more exhaustive 3D modelling techniques.

The resource estimates for South Inkai were prepared by CSA and reviewed by Roscoe Postle Associates Inc. ("RPA"), and RPA also prepared the reserve estimates under contract to CSA starting in September 2013. RPA used CSA's South Inkai resource block models to prepare the reserve estimates.  CSA re-estimated the global mineral resources for the deposit, using a new wireframe model and interpolation of grades into the block model based on the existing drilling data collected to date.  RPA applied a 90% extraction rate, the same rate as used in previous estimates, because it is supported by the extraction curves from the site.

Qualified Persons

Except as otherwise noted, Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, MGSSA, CIM, Senior Vice-President of Uranium One, is the Qualified Person who prepared or supervised the preparation of the information that forms the basis of the scientific and technical disclosure on the Company's mineral properties contained in this press release.  The resource estimates for the South Inkai mine were prepared for the Company by independent consultants CSA, under the supervision of its Qualified Person, Dr. Maxim Seredkin, Senior Resource Geologist, and the reserve estimates were prepared by RPA, under the supervision of its Qualified Person, Mr. Dennis Bergen, P. Eng., Associate Principal Mining Engineer.

 

 

SOURCE Uranium One Inc.

For further information:

Chris Sattler
Chief Executive Officer 
Tel: +1 647 788 8500

Anton Jivov
Vice President, Corporate Affairs 
Tel: +1 647 788 8461