TORONTO AND JOHANNESBURG, South Africa, Nov. 3, 2011 /CNW/ - Uranium One
Inc. ("Uranium One" or the "Company") today announced an updated
mineral resource estimate for the Mkuju River Project in Tanzania. The
updated resource model will form the basis for the definitive
feasibility study being prepared on the Mkuju River Project, which is
expected to be completed by the end of Q1 2012.
39% increase in Measured Resources to 55.3 million pounds U3O8
48% increase in Indicated Resources to 38.0 million pounds U3O8
Inferred Resources of 26.1 million pounds U3O8
87% or 81.2 million pounds U3O8 of the Measured and Indicated resources is within 60 metres of surface
(91% of Measured Resources and 82% of Indicated Resources)
Mkuju River Project Mineral Resource Estimate
as at September 27, 2011
Total Measured & Indicated
Notes: Reported at a cut-off grade of 100 ppm U3O8. All figures are rounded to reflect appropriate levels of confidence.
Apparent differences may occur due to rounding. The resource estimate
has been prepared by independent consultants CSA Global Pty Ltd ('CSA')
under the supervision of Qualified Person Mr. Malcolm Titley and is
reported in accordance with the Canadian National Instrument 43-101.
CSA Global Pty Ltd. ("CSA") has provided the Company with an updated NI
43-101 compliant mineral resource estimate as at September 27, 2011 for
the Mkuju River Project. The updated mineral resource estimate
incorporates a cut-off grade of 100 ppm U3O8, additional drilling data and the use of Uniform Conditioning grade
Compared to the mineral resource estimate previously announced by Mantra
Resources Ltd. ("Mantra") in November 2010 (which used a cut-off grade
of 200 ppm U3O8), the updated mineral resource estimate shows a 39% increase in the
Measured Resource category to 55.3 million pounds and a 48% increase in
the Indicated Resource category.
The updated mineral resource estimate also shows a reduction in Inferred
Resources of 9.8 million pounds U3O8 primarily resulting from the conversion of Inferred Resources into
Indicated and Measured Resources.
Additional details of the updated mineral resource estimate can be found
in Appendix "A".
As previously announced, Uranium One's 51% majority shareholder, JSC
Atomredmetzoloto ("ARMZ"), acquired Mantra on June 7, 2011 and Uranium
One is the operator of Mantra's Mkuju River Project pursuant to an
operating agreement entered into with ARMZ. Additionally, Uranium One
has a call option to acquire Mantra from ARMZ for consideration equal
to ARMZ's cost plus certain additional expenditures, exercisable until
June 7, 2012. ARMZ also has a put option to sell Mantra to Uranium One
for the same consideration on June 7, 2012. The call option and put
option may be extended to June 7, 2013 if Uranium One partially
exercises its option and acquires approximately 15% of Mantra for
US$150 million before January 31, 2012. The option to acquire the
remaining 85% interest in Mantra (or 100% if the option is not
partially exercised) will be subject to Uranium One minority
About Uranium One
Uranium One is one of the world's largest publicly traded uranium
producers with a globally diversified portfolio of assets located in
Kazakhstan, the United States and Australia.
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.
The information contained herein regarding the estimation of Mineral
Resources was prepared by Mr. Malcolm Titley of CSA Global Pty. Ltd.
Mr. Titley is a Member of the Australian Institute of Geoscientists and
has sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration, and to the
activity he is undertaking, to qualify as a Competent Person as defined
in the 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (The JORC Code)
and is a "Qualified Person" under National Instrument 43-101 -
'Standards of Disclosure for Mineral Projects'. Mr. Titley has verified
the data disclosed in this release, including sampling, analytical and
test data underlying the information contained in this release.
Forward-looking statements: This press 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 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, title disputes
or claims and 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 the transactions described in
this press release, 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, 2010 and Management Information Circular dated
August 3, 2010, each of which is available 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
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.
Mkuju River Project Mineral Resource Estimate
CSA Global Pty Ltd. ("CSA") has provided the Company with an updated
Canadian National Instrument 43-101 ("NI 43-101") compliant mineral
resource estimate as at September 27, 2011 (the "Updated Resource
Estimate") for the Mkuju River Project. Resource modelling for the
Nyota Prospect located within the Mkuju River Project has been updated
for the entire resource area using additional drilling data, Uniform
Conditioning ("UC") grade estimation and a cut-off grade of 100 ppm U3O8 to produce a mineral resource estimate.
Uranium mineralisation is hosted within sub-horizontal sandstone units
deposited within a braided stream system. The stream channel facies
sediments are considered better conduits for mineralisation compared to
the overbank facies, with interbedded claystone horizons and local
normal faulting playing a role in the distribution of mineralisation.
The channel and overbank facies can generally be differentiated through
grain size distribution modelling, with the channels being dominated by
coarser sediments. Surface geological mapping combined with drill hole
logging and down-hole geophysical conductivity data was used to define
faults, boundaries of the sedimentary facies cycles and claystone
horizons. These fining-upwards sequences bounded by clay horizons are
termed cycles. The average dip of cycles ranges between 2 and 3 degrees
towards the north and north-northeast, and in some cases towards the
Quality assurance and quality control information for all assay and
geophysical data was reviewed by CSA and showed acceptable levels of
precision and accuracy. Results comparing pairs of samples using
chemical assay and geophysical results were analysed within the
mineralised composites and showed a good comparison with assay data
below 20 metres. In the upper 20 metres, there is an indication of
potential negative disequilibrium, which has been taken into account in
the Updated Resource Estimate.
All drilling and trench data was composited to 1 metre down hole
intervals. Geostatistical analysis was completed for all areas, which
were subsequently grouped into zones defined by common geostatistical
Grade estimation was carried out using Ordinary Kriging and UC. The UC
estimates were corroborated using Multiple Indicator Kriging ("MIK")
completed by Hellman and Schofield. The sedimentary cycle horizons were
used as an aid in determining zone boundaries and the directions of
mineralisation continuity. The cycle horizons were not used to
constrain the mineralisation. Variography was completed on zones where
there was sufficient data density; where data was insufficient,
parameters from nearby deposits were used.
Grade was estimated in a grid (panel) of 50 metres x 50 metres x 4
metres ("X x Y x Z"), with a recoverable Mineral Resource Estimate
reported for a selective mining unit ("SMU") of 10 metres x 10 metres x
4 metres. A local uniform conditioning ("LUC") technique was used to
convert the panel blocks to SMU size blocks for use in subsequent mine
The cut-off grade of 100 ppm U3O8 was selected in light of the proposed addition of heap leach processing
to the resin in pulp process currently contemplated in the definitive
feasibility study ("DFS") being prepared.
Three estimation passes were completed based on the ranges derived from
Gaussian transformed U3O8 variography. The orientation of the search ellipses were aligned to the
major direction of mineralisation continuity for each zone. All
potential mineralisation that fell outside the search parameters was
ignored and assumed to be waste.
Grades within 20 metres of surface were reduced by 30 ppm U3O8 to allow for near surface negative disequilibrium observed at the MRP.
This is an increase from 10 metres used in the mineral resource
estimate previously announced by Mantra Resources in November 2010 due
to additional data obtained from the diamond drilling and chemical
Grade estimate validation confirmed that the block model reflects the
tenor of input grades, and can be considered reliable on a local scale
in the Measured and Indicated areas, and reliable on a global scale in
the Inferred areas.
The Updated Resource Estimate has been classified as Measured, Indicated
and Inferred, based on the guidelines specified in the JORC Code (2004
Edition) and Canadian National Instrument 43-101 ("NI 43-101").
CSA has considered the following in determining the classification of
the Updated Resource Estimate:
Adequate validation of tenement title, drilling, sampling and geological
process completed during a number of site visits by Mr Malcolm Titley,
Principal Consultant, CSA Global (UK) Ltd, from April 2008 to August
Adequate geological evidence for continuity of mineralisation at the
cut-off grade used in the estimation of the mineral resource
Adequate analytical evidence of U3O8 mineralisation through the use of multiple methods of U3O8 measurement
Adequate diamond core sampling to validate geophysical assay results and
provide metallurgical samples to confirm the viability of U3O8 processing and recovery methods
Adequate QA/QC controls in place to validate the U3O8 grades
Adequate diamond core sampling to determine the dry in situ bulk density
in order to estimate the tonnage of mineralisation
Resource classification based on the estimation search parameters and
the OK slope of regression, with material classified as Measured where
the average sample spacing ≤ 60 metres and slope ≥ 0.85, Indicated
where average spacing is ≤ 120 metres and slope ≥ 0.7 and the remainder
Use of a lower grade cut-off of 100 ppm for the Updated Resource
Estimate (compared to 200 ppm previously) resulting in an increase in
the Measured and Indicated resource, due primarily to increased grade
continuity at the lower grade cut-off
Near surface mineralisation, suitable U3O8 grade and known economic extraction methods at the 100 ppm cut-off
ensure this resource has reasonable prospects for economic extraction
SOURCE Uranium One Inc.
For further information:
Chief Executive Officer
Tel: +1 647 788 8500
Manager, Corporate Development and Investor Relations
Tel: +1 647 788 8461