confidence grows over rssing south

Confidence grows over Rssing South
Written by David Adetona
Friday, 05 February 2010 08:16
Namibia is poised to become a top 5 global uranium producer in the next 5 years if Extract Resources manages to obtain its goals in the development of the Rossing South uranium project. Extract believes it is the most important uranium discovery of recent years.
During a recent media tour to the Rssing South uranium project site , non-executive chairperson, Steve Galloway told the Economist that Extract Resources Namibia would be developing a world-class asset with its ongoing aggressive exploration to increase the existing resources base to become the second largest uranium mine in the world.


According to Galloway, the Rssing South uranium project mineralisation is poised to become the second largest uranium mine in the world because it has been confirmed that it is the highest-grade granite hosted uranium deposit in Namibia and one of the most significant uranium discoveries in recent years.
We are expecting to complete our feasibility study by mid 2010 and plans to start stripping the area in about12 months from now he said.
Extract Resources research and studies have showed that there is a Rssing South Zone 1 maiden resource of 108-million pounds of uranium oxide at a grade of 430 parts per million, he said.
Galloway used the media tour as an opportunity to explain to the Economist the companys aggressive exploration plans that is meant to increase its existing resource base. Galloway mentioned that 15 rigs are currently under operation on the site and the Rssing South Zone1 and Zone 2 exploration drilling by the company will be an on-going exercise because it is where the initial drilling intersection had confirmed that similar mineralisation is still open at depth and long strike can also be discovered.
He further stated that the preliminary cost estimate report on the mineralisation at the Rssing South uranium project had measured or registered that the uranium project in Namibia could support a viable open pit mining operation developed to feed a 15-million-ton-a-year agitated tank sulphuric acid leach process plant with uranium production also estimated at about 14,8-million pounds of uranium oxide in a year.
Galloway pointed out that metallurgical test work being conducted on material from the areas of the planned starter pits has indicated recoveries of over 90% without fine mining and they are well-advanced on the final scoping of all infrastructure options.
He also pointed out that the capital costs for the development of the Rssing South uranium project which was initially estimated at just over $700million has now increased to close to a $1billion.
The non-executive chairman also said that the AIM-listed Kalahari Resources is Extracts largest shareholder, as it recently increased its stake to 41%, while Rio Tinto Australia and Polo Resources are also significant shareholders. But he was quick to mention that the company would also be looking out for and would welcome some project financing from interested entities since the bulk funding would probably come from the Extract Resources shareholders.
He also explained that in Norman Green the company was led by one of the most experienced people in the industry as the CEO boasts of 30 years of experience of managing large mining projects . Green who is a Witwatersrand graduate Engineer also has extensive experience in Namibia mining having managed the Skorpion Zinc Project before.
Lastly, Galloway added that a new managing director will be appointed on or before the middle of the year 2010, to efficiently and effectively guide the company to both policies and strategic plans that will bring about development and the progress of the Rssing South uranium project into a world class mine and become a top 5 global uranium producer.


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