JOHANNESBURG (miningweekly.com) - Namibia-focused uranium...

JOHANNESBURG (miningweekly.com) - Namibia-focused uranium explorer Extract Resources said on Monday that its exploration and evaluation expenditure had increased by more than 54% in the half-year ended December 31, 2009.

The company boosted its exploration expenditure to A$16,33-million in the interim period, compared with A$10,58-million in the half-year ended December 31, 2008.

This was mainly as a result of the start of a feasibility study for the company's Rossing South project and the associated drilling programme.

The 8-km uranium mineralisation has been confirmed as the highest-grade granite-hosted uranium deposit in Namibia, and one of the most significant uranium discoveries in decades.

Since the release of the company's resource statement in July 2009, it had drilled an additional 233 holes. The results would form part of the company's definitive feasibility study.

"We expect that future drilling will increase the resource size, and Extract continues to increase the exploration team on site to process chips and core from the additional rigs to accelerate field work," said the company.

The company expected to complete the feasibility study by mid-2010 and have plans to start stripping the area in less than a year.

A preliminary cost estimate report on the mineralisation at the project indicated that the project could support a viable openpit mining operation developed to feed a 15-million-ton-a-year agitated tank sulphuric acid leach process plant. Production was estimated at 14,8-million pounds of uranium oxide a year.




Edited by: Creamer Media Reporter