evening posters

From a friend of mine

Harlee


Kalahari Minerals: Singer Capital upbeat on progress at Extract's R?ssing South uranium project
Thursday, January 13, 2011 by Jamie Ashcroft

Extract Resources (TSX:EXT, ASX:EXT) is making progress on all fronts at the world class R?ssing South uranium deposit at the Husab project in Namibia, according to research by City Broker Singer Capital Markets.

R?ssing South is currently one of the world?s largest uranium deposits. Investors on London?s AIM market are likely to have heard about the project through Kalahari Minerals (LON:KAH) who has a 41.12 percent stake in Extract.

Yesterday Kalahari published an update, relaying Extract?s fourth quarter results, to its investors.

This morning Charlie Long gave his view on Kalahari in a note to clients. ?The Definitive Feasibility Study remains on track for publication in Q1 (calendar), whilst the Environmental Impact Assessment and mining licence application have been lodged with the relevant ministries,? Long said.

?We remain confident that between the boards of Extract and Kalahari there is enough experience to take Rossing South to production, although we recognise that the construction of a new desalination plant could still delay proceedings.?

He adds: ?We will be watching closely for any developments on the desalination plant as we regard the timing of its construction as the most likely source of delay.?

Extract is currently running a massive 17 rig drilling programme. It drilled 72,172 metres in the three months ended 31 December 2010. This took the overall running total to over 570,000 metres. At the moment Extract is focused on ?Priority 1? infill drilling at R?ssing South?s Zone 1.

?A resource upgrade is guided for H1 2011,? Long said.

?We are currently forecasting an update inventory of 375 million pounds, although there is probably upside potential here.?

The analyst added: ?We maintain our target price of 305p based on a peer comparison and an increased inventory of 375 million pounds uranium (U3O8).?

(305p good for starters based on 375mlbs... Lots of potential for further increases when you consider press releases from KAH in the past have said they expect north of 500mlbs. Some analysys have even mentioned up to 1000mlbs!)