JOHANNESBURG (miningweekly.com) – The TSX- and JSE-listed First Uranium intends raising another C$46-million to provide more funding for its South African Ezulweni and Mine Waste Solutions gold and uranium projects.

First Uranium, headed by CEO Deon van der Mescht, is selling 46-million more shares C$1 a share, in order to achieve its goal of being a low-cost producer of uranium and gold.

An underground mine provides the feed material for the new uranium and gold plants at Ezulwini, and Mine Waste Solutions recovers gold and uranium from tailings.

Credit Suisse analysts Alex Terentiew and Dalton Baretto say in a note that they are “generally impressed with the progress being made at both operations”.

However, the investment bank team cites as a concern First Uranium’s need to meet its 26% black economic empowerment equity ownership level by 2014.

Ezulwini is expected to produce 81 000 oz of gold and 117 000 pounds of uranium during the 2011 financial year, and then ramp up production incrementally to 309 000 oz gold in 2019 and 909 000 lb of uranium in 2018.

The Mine Waste Solutions tailings recovery project consists of 14 tailings deposits from three gold and uranium mines that have operated for half a century.

The tailings dams are being hydraulically mined with high-pressure water cannons to slurry the tailings, which are then pumped to the plant for recovery of gold and uranium.

Credit Suisse forecasts that Ezulweni’s cash costs will decline progressively and that gold recovery will improve once Mine Waste Solutions begins to produce uranium, which is expected to take place before the end of 2011.

Edited by: Creamer Media Reporter

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