VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Feb. 2, 2010) - Gold Wheaton Gold Corp. (TSX VENTURE:GLW) (the "Company")
has received notice from First Uranium Corporation (TSX:FIU)(JSE:FUM) ("First
Uranium") that First Uranium has elected to suspend construction and
commissioning of the third gold plant at its Mine Waste Solutions ("MWS")
project in South Africa. In addition, First Uranium plans to reduce its
production at MWS from two gold plants to one gold plant at the end of March
2010. Under their revised plan, the MWS No. 5 Dam would provide sufficient
tailings deposition capacity for one operating gold plant until the end of
December 2011.
First Uranium recently
announced that its environmental authorization for the new Tailings Storage
Facility at MWS was withdrawn. This facility was designed to accommodate future
tailings deposition at MWS.
With this construction
suspension and reduced production, First Uranium has announced that it
anticipates annual gold production of approximately 57,000 oz in 2010 and
64,000 oz in 2011 at MWS. In accordance with First Uranium's contractual
commitments, 25% of this gold production is due to the Company.
"Gold Wheaton is extremely
disappointed in the steps that First Uranium has taken as a result of its
permitting and financial issues. It is possible that this action by First
Uranium at MWS will trigger, amongst other things, a $42 million penalty
payment due to Gold Wheaton if the project does not pass a technical completion
test by June 1, 2010. We are committed to work with First Uranium as they
resolve their current issues," said David Cohen, CEO and Chairman of Gold
Wheaton.
"We remain confident of the
quality of both the MWS and Ezulwini assets and their ability to produce gold
given appropriate permitting and financial support. Gold Wheaton will continue
to receive the contractually guaranteed production ounces from Ezulwini
throughout 2010 and 2011. However the reduced production at MWS will reduce our
overall forecast gold production by approximately 20,000 oz (17%) in each of
2010 and 2011. Our rights to the contractual gold production at each of the
First Uranium mines survive regardless of the ongoing ownership of these
mines."
Gold Wheaton is a gold
company with 100% of its operating revenue from the sale of gold and precious
metals produced by others. The Company has significant cash available and is
actively pursuing specific further growth opportunities.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained
herein, the information presented constitutes "forward looking statements".
Such forward-looking statements, including but not limited to those with
respect to the closing of the offering, involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of Gold Wheaton to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among other risks, risks
related to the timing and completion of the proposed listing on the TSX and the
proposed consolidation, the timing and quantum of any dividends, if any and
those factors discussed in the section entitled "Description of Business - Risk
Factors" in Gold Wheaton's Annual Information Form dated December 10, 2009 as
filed on SEDAR. Although Gold Wheaton has attempted to identify important
factors that could cause actual results to differ materially, there may be
other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the content of this news release.