34 PERCENT RESOURCE INCREASE Further big boost to Rossing South uranium resource With a Rossing South Zone 2 resource estimate coming up next month, the latest figures could propel the deposit into one of the world's top ten uranium resources.
Author: Lawrence Williams Posted: Thursday , 02 Jul 2009
LONDON -
The latest announcement from uranium explorer Extract Resources (ASX: EXT) gives further credence to its Rossing South discovery in Namibia being among the world's largest known uranium finds to date. Not only has there been an increase in tonnage in the latest resource estimate - now at 147 million tonnes indicated and inferred, but the grade has increased as well to 449 ppm, giving a total JORC compliant uranium resource of 145 million pounds U3O8 - with the deposit open along strike and down dip.
The resource defined to date, though, only relates to Zone 1 of Rossing South, with a maiden resource estimate for the equally promising Zone 2 expected next month. Extract reckons that once this resource estimate is announced, it will propel Rossing South into one of the world's top ten uranium resources by contained metal. Zone 2 could be of a similar size to Zone 1, but possibly of an even higher grade.
While Extract is the owner and operator of the project there are a number of other significant interested parties, all involved in a battle for ultimate control of what promises to be a significant mining operation in time. While waiting in the wings may be French nuclear industry giant Areva whose CEO, Anne Lauvergeon, is reported as saying earlier today that the company remains open to acquisition opportunities that exist in the mining sector, as the group needs more uranium. Areva it will be recalled, acquired another big Namibian uranium project developer, Uramin with its Trekkopje operation, for $2.5 billion in 2007.
Latest known interests in Extract Resources, which are fluid as interested parties have been buying in the market, include Kalahari Minerals (AIM:KAH), which now holds 40.0%, with announced stakes in the company also having been taken up by Rio Tinto (which operates the big existing Rossing uranium mine some 20km to the north), and Polo Resources. Rio also holds a significant stake in Kalahari as does a Polo associate by virtue of having the same chairman in Stephen Dattels, Emerging Metals. Rio is thought to own around 15% of Extract and a further 16% of Kalahari while Polo owns over 10% of Extract and Emerging Metals just under 10% of Kalahari. Niger Uranium owns over 15% of Kalahari.
On the latest resource announcement, Extract's Managing Director, Peter McIntyre, said "This resource upgrade on Zone 1 at Rossing 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 ......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 Rossing 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."
Kalahari Chairman Mark Hohnen said, "These results yet again underpin that Rossing South is one of the world's most significant uranium discoveries. The 34% increase in resource for Zone 1 to 145 million lbs of U3O8 is fantastic news and in line with our estimates. Additionally we were hugely excited about the increase in grade which makes Rossing South the highest grade granite hosted uranium deposit in Namibia. We look forward to Extract publishing a maiden resource for Zone 2 in August, which we believe will elevate Rossing South into the world's top ten global uranium deposits in terms of contained metal. Importantly the mineralisation at Zone 1 and 2 remains open along strike and down-dip."
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