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First Uranium negotiates marketing agreement

First Uranium’s
Ezulweni complex
Johannesburg, South Africa — MININGREVIEW.COM — 02 September 2008 – First Uranium Corporation – which is focused on the development of its South African uranium and gold mines – has entered into an exclusive agency agreement with the Traxys Group – a global metals, minerals and energy marketing company.
A news release issued here and in Toronto stated that in terms of the agreement Traxys would market on an exclusive basis all of the uranium production from First Uranium’s underground Ezulwini mine, and from its tailings re-treatment operation at Mine Waste Solutions (MWS), except for any uranium that might in future be sold to fulfill South Africa’s requirements.

“While our production ramps up, we have agreed to work with Traxys to enter into market- related transactions for short-term delivery at or near uranium spot prices,” said First Uranium president and CEO Gordon Miller.
“Following on from our initial spot sales contract, Traxys will help us to enter into long-term contracts with utilities and to build a balanced portfolio of sales contracts while maintaining up-side exposure to the market,” he added.

“At the same time,” says the First Uranium news release, “the company is maintaining regular contact with South Africa’s Department of Minerals and Energy (DME), the national power utility Eskom, and the Nuclear Energy Corporation of South Africa (NESCA) to ascertain domestic uranium requirements to meet the country’s national security of supply imperatives for its planned nuclear power plants.”

The news release revealed that First Uranium expected to begin producing yellowcake at its Ezulwini Mine next month, and at MWS in early 2009. The company intended producing approximately 454 000 pounds of uranium in the current fiscal year, ramping up sharply to approximately 1.7 million pounds in its fiscal year ending 31 March 2010. Over the currently planned 18-year life of its operations, the company expects to produce an average of approximately 2.1 million pounds of uranium per annum.

“Our near-term objectives are focused on expanding current gold production, while commissioning the uranium plants at both operations and delivering consistent operational cash flows” said Miller. “We remain on track to achieve our long-term objective to become a major low-cost uranium producer.”