extract to start feasibility study

Extract to start feasibility study on African uranium deposit

Monday , 16 Mar 2009

Australian explorer, Extract Resources Limited - in which Rio Tinto plc is a 15% shareholder - says it expects to appoint engineering consultants within 2 weeks, for a feasibility study for its highly promising year-old Rossing South uranium discovery in Namibia.

In addition, the Company expects to have a total project resource of around 200 million pounds of uranium oxide for Rossing South within the next five months.

Addressing the first day in Adelaide today of the Paydirt 2009 Uranium Conference, Extract Resources' Managing Director, Mr Peter McIntyre, said the Company had set a target date of August this year for the first resource estimate for the deposit's Zone 2 mineralisation.

This followed the release in January this year of the maiden Inferred Resource estimate for Zone 1 of Rossing South of 108 million pounds of U3O8 at 430 parts per million.

Mr McIntyre said "this estimate was above our upper limit expectations" and is a 50% higher resource grade than for the 30-year plus existing giant Rossing uranium mine.

Extract has targeted an additional resource of 68.7 - 105.8 million pound for Zone 2 at between 260-300 parts per million for a total resource of above 200 million pounds, including Zone 1.

"We will also continue in 2009 to drill out the deposit as some nine kilometres remains undrilled of the total 15 kilometre strike length of the Rossing South mineralisation," Mr McIntyre said.

"The Zone 1 resource estimate confirmed Rossing South as a world-class uranium discovery and we are confident that the further expected upgrades will propel the project into the world's top-10 uranium deposits," he said.

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