Kalahari Minerals plc, the AIM listed resource company, is pleased to provide an update, published by Extract Resources Ltd (`Extract' or `the Company'), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 40.6% interest, regarding further exceptional assay results from the Rssing South mineralised system, part of Extract's world-class Husab Uranium Project.
Kalahari's Executive Chairman, Mark Hohnen, said, "These latest exceptional assay results underline the enormous potential of the Rssing South project. The infill drilling on Zones 1 and 2, aimed at proving up Extract's current resource from the Inferred to Indicated category, continues to deliver outstanding results and include an intercept of 73 metres grading 2,243ppm U3O8. Additionally and highly significantly, the exploratory drilling on the western limb of the Rssing South anteform is also yielding extremely encouraging results and demonstrates the potential for the entire Husab Project which we believe will be one of the world's largest economic deposits.
"Extract is clearly highly focussed on the rapid development of the project. 19 drill rigs are currently on site, making the current drilling programme one of the largest being conducted in Africa. Kalahari is fully supportive of this development strategy and look forward to the updated resource estimate which is expected in Q3 2010, as this will add further tangible value to this globally significant asset. The pilot testwork, aimed at identifying the most effective treatment options for the mined uranium, has also delivered encouraging results and is expected to be concluded by the end of June 2010.
"We also look forward to the publication of the Rssing South Definitive Feasibility Study, scheduled for release in Q4 2010. Kalahari is confident that this will easily confirm the key findings of last year's scoping study, supporting Rssing South's potential to support a profitable, low risk, open pit mine producing in excess of 15Mlb of U3O8 per annum over a 20+ year mine life. Importantly, the scoping study was conducted using an average grade of 487ppm, significantly lower than the grades we are now witnessing at Zones 1 and 2, a factor that should definitely be taken into account when evaluating the project economics further."
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