Fast Facts:

Well established and profitable gold operations
Feasibility study supporting a robust low risk uranium project
Corporate capacity and management focus
Large pipeline of accretive opportunities
Assets located in the well-developed Randfontein mining area

Well-established and profitable gold operations

The existing gold operations are well-established cash generative operations. They provide a substantial under-utilized infrastructure and the hoisting capacity to increase tonnage with limited additional capital investment.
The Cooke Underground mines are producing approximately 180k oz to 220k oz of gold per year and provide a solid operating base for the company and a material source of cash flow, which will assist in funding the development of the uranium business.
The mines are shallow (~1,000 meters), safe and efficient with limited seismicity or heat challenges typically associated with South African underground gold mines.
Exploration and resource development work on the orebody continues to be driven by a focused management team and experienced range of external consultants. Research indicates that much of the Cooke Underground resource potential is yet to be appreciated, and presents numerous life extension opportunities that justify significant exploration attention.

Feasibility study supporting a robust low risk uranium project

As a large, aboveground resource adjacent to Rand Uranium’s existing underground operations, the Cooke Tailings Dam provides Rand Uranium with a unique competitive advantage to establish a quality long-term uranium project.
Cooke Tailings Dam has been thoroughly drilled, sampled and modelled, providing a high level of confidence in the contained grade and tonnage. The thirty year-old tailings dam has exceptional uranium grades for a surface resource as evidenced by the uniquely high uranium grades of the Cooke ore bodies from which the tailings were mined. The hydraulic mining of the Cooke Tailings Dam resource will also be very low risk and can be executed at any rate to complement the underground ore during processing operations.
The Cooke Tailings Dam uranium recovery grade is approximately three times the average uranium recovery grade of any other tailings dam on the West Rand, highlighting the competitive advantage.
The high-grade resource and scale of Cooke Tailings Dam support the capital expenditure (presented in the Definitive Feasibility Study) required to develop a large-scale uranium processing facility and associated infrastructure, which can also be used to process ore from other Cooke assets and/or other resources owned by third parties in the region (West Rand).
The Cooke Underground mines have the capacity to opportunistically exploit dual-pay uranium and gold containing ores, in parallel with existing high-grade gold-only operations. The ore recovery process is simply an expansion of Rand Uranium’s existing gold mining operations using an established infrastructure. The risks associated with recovery of uranium via this method are significantly lower than those of a green field development project.
The ores to be treated in the uranium plant offer simple and well-proven metallurgy. The same underground ores have been previously treated for uranium at Cooke in the 1980’s and extensive test work has been undertaken over the last two years to support the current feasibility study.
The company is developing multiple tailings deposition options, with a particular focus on the initial use of Rand Uranium’s existing tailings deposition sites and pits, which would substantially defer the capital expenditure for a longer-term green field facility until regional synergies can also be considered.

Corporate capacity and management focus

Rand Uranium was developed from largely under-utilized gold assets, and has inherited a strong operational and technical team from Harmony Gold with vast underground gold experience and capability to undertake the optimization of current mining operations.
The Company has recruited a strong senior management and executive team with specific skills in mineral resource management, metallurgy and project management to supplement the operational team for the delivery of this significant project. This management team is also complemented by strong engineering firms collectively bringing substantial experience in the fields of gold and uranium mining, logistics, processing and deposition.

Large pipeline of accretive opportunities

Beyond the Cooke Tailings Dam, the Company owns significant additional surface resources containing uranium and gold, including the Millsite and Old 4 Tailings Dam assets. While only expected to be brought into production at some point in the future, these additional resources do provide the potential opportunity to undertake incremental expansions of the Uranium Project to treat additional feedstock.
The Old Randfontein section – the area owned by the Company immediately north of the Cooke Underground – has historically been mined and treated for uranium and gold, though little is known about the future resource potential in this area.
The Company is developing a large uranium processing facility in a region that hosts extensive other uranium and gold surface resources, many of which are owned by companies that are unlikely to treat these resources themselves due to their low uranium recovery grade, on a standalone basis. It is estimated that there is in excess of 1.1 billion tonnes of uranium resource located within an 80km radius of the Company’s operations.
The Company’s operations are located adjacent to other significant gold and uranium mining operations, and while yet to be proven or secured, synergies are likely to exist with regard to sharing infrastructure in areas such as deposition, acid production, water treatment, ventilation and services.

Assets located in South Africa’s well-developed Randfontein mining area

The Rand Uranium operations are located on the outskirts of Johannesburg, South Africa, near Randfontein. This ensures excellent access to infrastructure and proximity to a significant pool of world class mining and project development service companies.
South Africa has a rich heritage of resource extraction and development as well as a long history of successful mining partnerships.

The interaction of the above attributes results in a company that is excellently positioned to compete in the global uranium production industry, off the back of strong existing gold mining operations. The combination of high grade surface and underground uranium resources presents a development opportunity that is low risk from a technical point of view and well supported by cash flow from current gold operations. Regional positioning is such that once Rand Uranium has executed this first phase of its uranium development it will be in a strong position to drive consolidation of uranium production on the West Rand of South Africa, creating a significant player within a currently fragmented market.