Full speed ahead for Extract -------------------------------------------------------------------------------- Friday, 4 September 2009 Claire Svircas
ON the back of assay results which indicate a possible third zone in the Rossing South uranium prospect in Namibia, Extract Resources says the potential exists to uncover another two zones in the next 18 months.
Managing director Peter McIntyre told the Africa DownUnder conference in Perth on Thursday it was expected the prospect could easily surpass 300 million pounds of uranium by Christmas.
Rossing South currently has an indicated and inferred resource estimate of 249 million tonnes grading 487 parts per million of uranium for 267Mlb of uranium.
“The rapid growth of zones 1 and 2 is now being complemented by the potential of a third zone of mineralisation along the same Rossing South trend," McIntyre said.
“And more exciting news was recently received some six weeks ago with detailed geological data showing to the east and west there are zones almost identical to zones 1 and 2.
“While at this point in time we have not even put holes in these areas, these are seemingly ready-made exploration targets, which means in the next 12 to 18 months we could potentially be discovering zones 4 and 5.”
Already the seventh-largest uranium deposit in the world, McIntyre said in 12 months Rossing South could knock off McArthur River as the largest, bar Olympic Dam.
Extract currently has four rigs working on resource definition at Rossing South, with another reverse circulation rig testing the Salem prospect around 10km south.
The company is sourcing another rig to help with infill resource definition drilling at zones 1 and 2, with two more diamond drill rigs expected at the project next week to accelerate the resource work and perform geotechnical drilling.
McIntyre said as many as 13 rigs could soon be operating at the deposit.
The company is aiming for production in 2013.
Shares in Extract gained A3c to $9.81 in morning trade.
Source: Mining News
EXT Price at posting:
$9.85 Sentiment: Buy Disclosure: Held
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