Trading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg
Stock Exchange)
VANCOUVER and JOHANNESBURG, Dec. 23 /CNW/ - Uranium One Inc. ("Uranium
One") today announced that the Kazakh Ministry of Energy and Mineral Resources
has formally approved the commencement of industrial production at South
Inkai. The approval was given by way of an amendment to the South Inkai
subsoil use agreement and permits the Company's 70% owned Betpak Dala joint
venture to ramp up production at the South Inkai Uranium Mine over the next
three years to 5.2 million lbs U(3)O(8) per year.
As a result of the approval, commercial production for accounting
purposes will now commence at South Inkai. The processing plant at South Inkai
was completed earlier this year, and the first sale of South Inkai uranium
production is expected to take place shortly. The revenue and associated
expenses with the sale of South Inkai production will now be included in
Uranium One's consolidated statements of operations.
South Inkai is Uranium One's second mine to enter into commercial
production and at full capacity is expected to be twice the size of the
Company's Akdala Uranium Mine.
As previously announced, Uranium One's attributable production from South
Inkai is expected to be 766,500 lbs U(3)O(8) for 2008. As of the end of
November 2008, Uranium One's year to date share of production from South Inkai
was approximately 710,000 lbs U(3)O(8). Well field development is ahead of
schedule and, in November, South Inkai received sufficient sulphuric acid to
commence acidification of Block 4 at the operation.
Uranium One expects its attributable production from South Inkai to be
1.5 million lbs U(3)O(8) in 2009. The average cash cost per pound sold during
2009 at South Inkai is expected to be approximately US$28 per pound, but due
to the continuing ramp up in production throughout the year, the cash cost per
pound sold is expected to decline to approximately $20 per pound by the end of
2009.
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, South Africa and Australia.