Extract Resources upgrades resource at R�ssing South Uranium Deposit.
Uranium exploration and development company Extract Resources (ASX, TSX, NSX: EXT) has reported a new resource estimate, following JORC Code and Canadian NI43-101 guidelines, for the R�ssing South Deposit in Namibia.
The size and grade of the new resource confirms the deposit as one of the most significant uranium discoveries made in the last decade, and establishes it as the largest in-situ and highest grade, granite-hosted uranium deposit in Namibia.
The upgrade also moves R�ssing South, part of Extract�s 100%-owned Husab Uranium Project, into the top 6 global uranium deposits by contained metal.
Extract said the increased resource underpins the company�s next milestone, which is the completion of the Definitive Feasibility Study (DFS), and takes Extract another step forward from a successful explorer to becoming a major uranium producer.
Jonathan Leslie, managing director, said "we have further defined one of the world�s largest uranium resources which supports the scheduled completion of the Definitive Feasibility Study in Q4 2010 and, in time, the development of a world-class mine."
�We also expect that the resource base will continue to increase with on-going drilling. Once in full production, the Husab Uranium Mine is expected to become the second largest producer in the world."
Leslie also added, �the immediate priority remains completing the Definitive Feasibility Study on Zones 1 and 2 to bring these deposits into production within the shortest possible time frame."
Zones 1 and 2 Indicated Resource increased to more than a quarter of a billion pounds (257M.lbs) U3O8 which is a ten-fold increase in Indicated Resource from the previous resource statement.
It now has an Inferred Resource of 110M.lbs U3O8, including a Maiden Inferred Resource from Zones 3 and 4. There was a 37% increase in Total Resource size from previous resource statement.
R�ssing South is confirmed as the largest in-situ and highest grade granite-hosted uranium deposit in Namibia and has extensive exploration potential within Husab Uranium Project which is still to be tested with an extensive drilling program continuing.
Since July 2009, the drilling effort has been successful in both the conversion of resources from Inferred to Indicated status and growing the resources in Zones 1, 2, 3 and 4. Indicated Resources now account for 70% of the Total Resource.
Seventeen drill rigs remain on site with the current focus on completing the drilling required to define Measured Resources within the Zones 1 and 2 starter pits.
�Once the resource update has been optimised additional drilling will be planned, aimed at converting additional Inferred Resource material to Indicated status and defining additional resources down plunge of high grade domains. An updated resource is expected within Q1 2011," said Leslie.
�Significant exploration potential remains to be tested throughout the Husab Uranium Project, with 7 of the 15 kilometre R�ssing South trend yet to be drilled. Although Extract�s priority remains resource definition and project development, exploration of this large mineralised system is expected to continue for some time,� he added.
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