Extract upgrades Rössing South resources

Thursday, 2 July 2009

Australia's Extract Resources has upgraded the uranium resource estimate at Zone 1 of its Rössing South deposit in Namibia by 34% from its previous estimate. An initial resource estimate for Zone 2 is expected next month.

 

Rössing South (Image: Extract)

In January, Extract announced for Zone 1 of its Rössing South deposit - about 7 kilometres south of the Rio Tinto-controlled Rössing mine - an inferred resource of 41,600 tonnes of uranium at an average grade of 0.0365%. These figures are compliant with the JORC and NI 43-101 standards.

 

The Perth-based company has now announced that its indicated and inferred resource for Zone 1 had increased to 55,900 tU at an average grade of 0.0381%. These figures are also JORC and NI 43-101- compliant.

 

Extract said Rössing South was the highest grade granite-hosted uranium deposit in Namibia, and it is an extension of the Rössing stratigraphy. It lies under a shallow (50 metres) alluvial sand cover. Rössing South is part of the company's Husab project, which includes the Ida Dome further south.

 

The company has been conducting further exploration drilling at Zone 2 at Rössing South to "establish an even larger resource base." A further zone remains a target for exploration.

 

In a statement, Extract said, "The new Zone 1 resource reconfirms Rössing South as one of the most significant uranium discoveries ever made. Once the Zone 2 resource estimate is completed (August 2009) Rössing South is expected to be one of the top 10 global uranium deposits by contained metal."

 

Peter McIntyre, Extract's managing director, commented: "This resource upgrade on Zone 1 at Rössing South is an outstanding result. The significance of the recent high grade intersections we have been reporting, are now being reflected in this major deposit."

 

He added, "The Zone 2 maiden resource is on track for August 2009 so the company will establish an even larger resource base over the next two months, and position Rössing South amongst the best of the world's uranium deposits. This resource base is expected to support a long life, large scale open pit mining operation and a feasibility study is in progress to quantify this potential."

 

Extract launched the Rössing South feasibility study at the beginning of April. The study will be completed in two parts, commencing with a pre-feasibility study, followed by a definitive feasibility study.