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
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.
Attributable production for 2013 increased by approximately 8% to a record of
13.2 million pounds U(3)O(8 )compared to 12.2 million pounds produced in 2012.
A breakdown of Uranium One's attributable production for the full year 2013 is
Table 1 - Uranium One Attributable Production (million pounds U(3)O(8))
| 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.
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
For further information about Uranium One, please visit www.uranium1.com.
URANIUM ONE INC.
MINERAL RESOURCES AND MINERAL RESERVES FOR SOUTH INKAI MINE
AT DECEMBER 31, 2013
|Mine / Area |Category | Tonnes|Grade| Uranium |Grade| Uranium |
|(Attributable| | | | | | |
|%) | | | | | | |
|Location | | | | | | |
|Type of Mine | | | | | | |
| | | (000s)| (%U)| (t U) | (%| (M lbs U3O8) |
| | | | |___________________|U3O8)|_________________|
| | | | | 100% |Attributable| |100%|Attributable|
|South Inkai | | | | | | | | |
|Kazakhstan |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 | 89,041|0.034|29,873| 20,911|0.040|77.7| 54.4|
| |& | | | | | | | |
| |Indicated| | | | | | | |
| |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 & |136,644|0.014|19,419| 13,593|0.017|50.5| 35.3|
| |Probable | | | | | | | |
(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
(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
(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
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
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.
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.
Chris Sattler Chief Executive Officer Tel: +1 647 788 8500
Anton Jivov Vice President, Corporate Affairs Tel: +1 647 788 8461
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