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Australia's Extract Resources considers it has pulled out a plum

The initial Rossing South uranium project resource announced on Tuesday had its owner, Extract Resources, claiming the discovery has the scope to become one of the world’s top ten uranium deposits in terms of contained metal.
Author: Ross Louthean
Posted: Tuesday , 27 Jan 2009

PERTH -

Extract Resources (ASX & TSX: EXT) Tuesday produced an initial resource for its Rossing South project that meets both Australia's JORC Code and Canada's N143-101 guidelines, pointing out it has gone from discovery to a maiden resource within 12 months.

Using a cut-off grade of 100 ppm U308, the inferred resource is 115 million tonnes grading 430 ppm for 108.3 M lbs of contained metal.

Managing Director Peter McIntyre said Rossing South, which is only 5 kilometres from Rio Tinto's big Rossing copper-uranium mine, is now considered to be the highest grade granite-hosted uranium deposit in Namibia. Paladin Energy's new Langer Heinrich uranium mine is only 25 km away.

"The size and grade of this deposit puts it into a world-class category," he said.

"The resource grade exceeded the exploration target expectations by a considerable margin, and the maiden resource is only the beginning for Rossing South.

The resource is within Zone 1 which is still open along strike and downdip, while Zone 2 has mineralisation outlined over a strike of 2 km and, like Zone 1, is also open along strike and downdip.

McIntyre said 9 km of the prospective 15 km target area at Rossing South is still to be explored.

Rossing South is part of the larger Husab prospect held by Extract and about 70% of the area is masked by soil cover, including desert sands.

The Husab prospect also takes in the Ida Dome in its southern sector - which was drilled by Anglo American in the 1970s over a known strike of 900 metres. Last August Extract announced an indicated-inferred resource for Ida Dome's Garnet Valley, New Camp and Ida Central of about 25 M lbs of contained U308, based on a 100 ppm cut-off grade.

According to Intierra's Minmet data base, the company started life on its left foot when listed late in 1992 as Tuart Minerals NL but eventually ended in administration after failing to maintain funding for exploration on gold and base metal projects in Western Australia. It was brought out of administration in 2003 and reborn as Extract Resources with a management that moved it into Namibia before the big uranium rush began.