Extract Resources moving Husab resource from inferred to indicated category
By: Jonathan Faurie 4th June 2010
Australian mining junior Extract Resources has initiated its infill drilling programme to move the uranium resource at its Husab project, in western Namibia, from an inferred resource to an indicated resource.Although the results of the programme have not been confirmed, company subsidiary Swakop Uranium CEO Norman Green points out that the resource could be almost double that of the Rssing resource, currently Namibia's largest uranium mine. If the resource is as significant as Green expects it to be, the project could produce as much as 15-million pounds a year of uranium.
Extract Resources joins a host of other Australian companies that view uranium as a strategic resource and see Namibia as an ideal growth area as it hosts the world's largest untapped uranium resource.
"This project is significant in that it will potentially put Namibia on the map as a clean energy mining destination of choice," says Green.
The Husab resource has been around for millions of years but, until recently, technology battled to penetrate the thick layer of sand that covers the orebody.
Once developed, Husab will be Africa's biggest greenfield uranium project; however, Green says that, when compared to the start- up cost of Africa's biggest greenfield copper project, Lumwana, Husab's start-up costs will be higher.
In April last year, Mining Weekly reported that fellow Australian mining company Equinox Minerals spent up to $1-billion developing the Lumwana mine. Green reports that, because of the remote location of the Husab project, its start-up cost will be significantly higher than that for Lumwana.
He says that the biggest cost at Husab will be the power supply to the project. Although the project will be only 8 km away from the Rssing mine, additional capacity will be required in the area.
In terms of mining investment in the country, Green reports that Namibian policy is very attractive to investors. This was confirmed by the country's ranking on the Frasier Institute's 2009 survey of mining companies, which places Namibia thirty-seventh out of 72 countries, 24 places ahead of South Africa.
He says that this is the result of the size of the Namibian mining industry.
"The mining industry in Namibia is very small and will not have the challenges that South Africa has. As a result of its size, it is easy to find a point man within the industry and the industry is not overregulated," says Green.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)