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First Uranium in Harmony talks Posted: Fri, 30 Mar 2007 [miningmx.com] -- FIRST Uranium Corp. is bidding to mine uranium stowed at Harmony Gold's Randfontein mine, west of Johannesburg, said Jim Fisher, chief operating officer of First Uranium. On February 22, Harmony Gold CEO, Bernard Swanepoel, said Renova Group, a Russian firm, could build a uranium retreatment plant to mill uranium in slimes produced by Randfontein. In return, Renova was to offer gold exploration properties in Russia that Swanepoel later described as "quite cute". "We are in discussions with Harmony," Fisher said in an interview with Miningmx. "If you look at the arrangement with Renova and Harmony, it's non-exclusive." Fisher was speaking on the sidelines of the launch of First Uranium Corp.'s secondary inward listing on the Johannesburg Stock Exchange. The company listed in Toronto on December, raising C$233m. "Harmony are assessing the assets at the moment. We hope to have an update on a potential deal by mid-year," Fisher said. In May 2005, sxr Uranium One’s predecessor, Aflease Gold & Uranium (Aflease), ditched a R200m proposal to buy Harmony’s uranium tailings at Randfontein. The tailings were estimated to contain enough uranium to have doubled Aflease’s then stated resources of about 124 million pounds. There were other potential deals between First Uranium and Harmony including potential to treat uranium ore produced at Cooke 3, a shaft Harmony digs for gold at its Randfontein mine. "There are a lot of synergies. At the moment, Harmony gets no credit for the uranium in Cooke 3's ore," said Fisher. First Uranium could treat the uranium ore on a tribute basis, said Fisher. First Uranium bought Randfontein 4 shaft from Harmony Gold in 2006 renaming the shaft Ezulwini and which now forms a major part of First Uranium's plan to become a uranium oxide producer by October. Fisher also said the company was aware it might become a takeover target. "We know we're being watched and have heard of some interest through the banks," said Fisher. However, merger activity was low among the company's priorities, but Fisher said there were a number of deals within South Africa and the SADC region that could be completed. "There were once 22 [uranium] mills in South Africa. We think there's potential within our borders," he said. Gold Fields was also considering entering a joint venture to mine uranium at its old Oryx mine. Click Here to subscribe to our daily newsletter
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