URANIUM STUDY – Feasibility of Dominion Reefs points toward 30-year mine

SOUTH AFRICA - SXR URANIUM ONE of Toronto has completed the Phase I feasibility study of its Dominion Reefs project near Klerksdorp and concluded it would be possible to develop a mine with a 30-year life.

The Phase I study examines only the first 11 years of the proposed mine. Probable reserves are 31.3 million lb of uranium oxide contained within 18.5 million tonnes of ore grading 0.77 kg/t U3O8. Production would begin in 2011 and continue at a rate of 3.8 million lb of uranium oxide annually through 2014. The average cash operating cost would be US$14.50/lb of U3O8, net of gold byproduct credits. Capital costs would be US$179.8 million, including the underground mine (US$57.1 million), the mill (US$111.0 million), plus administration and contingency.

The mine will be developed as two operating areas, the Rietkuil and Dominion sections. Phase I contemplates trackless mining from surface to a depth of approximately 500 metres. Uranium One has chosen to mine the reef horizon using traditional South African breast mining methods, with face cleaning using scraper winches or water jetting.

A new uranium plant is being built for the Dominion project and is being integrated with the existing carbon-in-leach gold recovery plant. The old and new plants will be operated as a single facility that will give preference to ore from the Dominion project.

Read the news releases at www.Uranium1.com for information about how the Dominion project development is advancing.