Created: 24th Jun '09 by marben100 Last Updated: 3:27pm by marben100
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This thread relates to companies, news etc that surrounds ASX listed uranium explorer Extract Resources (ASX:EXT) - http://www.extractresources.com/. Extract's latest investor presentation can be found here: http://www.extractresources.com/DesktopModules/Bring2mind/DMX/Download.aspx?EntryId=3389&PortalId=13&DownloadMethod=attachment . The attractions of Extract are:
a) It has consistently underpromised and overdelivered
b) It has made one of the most significant uranium discoveries in decades, in politically stable & mining friendly Namibia. [It now has Namibian govt linked directors on its Board]. Once fully scoped its undeveloped resources are likely to exceed 500Mlb of U3O8*. 292Mlb of JORC resources are currently declared, with exceptional grades for the ore type (439ppm average). An independent estimate, based on drilling results released up to 11Jan2010, suggests that a total of at least 427Mlb should be identified in the next JORC estimate. Recent trade sales indicate a value of US$6/lb is conservative for undeveloped resources - suggesting US$3bn as a conservative valuation.
c) It has attracted the interest of Rio Tinto, who have substantial shareholdings in Extract and Kalahari. If you study the 2007 and 2008 "stakeholder reports" for Rssing Uranium, you will see that the existing Rssing mine is in need to new ore sources: http://www.rossing-com.info/reports/stake_report_2007.pdf and http://www.rossing-com.info/reports/stake_report_2008.pdf
d) The initial scoping study for developing a mine has indicated a target production rate of ~15Mlb U3O8 pa. This rivals production from the world's largest current U mine at McArthur River, Canada. Indicative cost figures will also place Rossing South amongst the world's lowest cost producers.
EXT Price at posting:
$7.15 Sentiment: LT Buy Disclosure: Held
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