......."Although chemical assay results haven’t yet been completed, the (potentially) most significant news is that uranium-bearing host rocks have been intersected 2.4km south of Rossing South Zone 2.
This is extremely exciting; it could represent an entire new discovery independent of (or even joined with) Zone 2.
However, this needs to be treated cautiously until full assay results are returned. With one rig now working over the remaining undrilled 7km of the 15km trend this could provide some serious new momentum for the share price.
As we anticipated in our report Kalahari Minerals — Zone 2 JORC Coming — Chasing 250Mlbs, 21 May 2009, the infill drill results at Zone 1 are of such high-grade and width, Extract will not only be releasing the Zone 2 maiden resource in August, but also an upgrade to the Zone 1 resource. These latest results are again hugely impressive, with numerous very wide intersections at well above the existing resource grade. For perspective, in gold equivalent these results would include 60m @ 12.6 g/t.
Thus, the results continue to validate our view that Zone 1 will reach at least 130Mlbs this year (currently 108Mlbs) and Zone 2 should reach 120Mlbs (management guidance 69-106Mlbs). Our view is well ahead of company guidance, so we expect the price to jump if and when such a resource is achieved. Again, for perspective, 250Mlbs equates to 16.7Moz gold equivalent from only 18 months of drilling. Beyond this we reiterate our confidence that Zone 1 and Zone 2 should reach 300Mlbs next year (20Moz gold equivalent), and could eventually reach 400Mlbs (27Moz gold equivalent)."...........
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