Check out the last paragraph re calcrete results. Was it stayhere who mentioned a while back that John Borshoff from Paladin talks to Peter McIntyre often and very interested in how EXT was going?? Hmmmmm.......
Research » Zone 1 Resource UpgradeZone 1 Resource Upgrade - Well ahead of expectations
02 July 2009
Extract Resources, in which Kalahari holds a 40% stake, has announced a resource upgrade at Zone 1 of the Rossing South deposit. The new resource of 147Mlbs @ 449ppm (previously 108Mlbs @ 430ppm) represents a 36% increase in contained uranium, and an improvement in grade. This includes an indicated resource of 24Mlbs @ 527ppm, and an inferred resource of 121Mlbs @ 436ppm. This resource upgrade excludes Zone 2, for which a maiden JORC resource will be released in August.
This resource estimate exceeds even our most optimistic expectations; in our research note Kalahari Minerals — Zone 2 JORC Coming — Chasing 250Mlbs, 21 May 2009, we forecast Zone 1 to increase to 130Mlbs with no increase in grade, so the increase to 147Mlbs is 13% ahead of this. To put this in perspective, at spot prices this equates to 8.1Moz gold equivalent @ 2.1 g/t gold), with the upgrade alone equating to 2.2Moz.
Not only is Zone 1 impressing, but investors still have a maiden resource from Zone 2 to come next month. Given drill results of 94m @ 896ppm and 64m @ 1,346ppm (released on 28 May), we think Zone 2 will be 120Mlbs. As such, we are revising our Zone 1+2 resource estimate for August to 270Mlbs (from 250Mlbs). Again, for context, this equates to 14.9Moz gold equivalent at spot prices.
This is just our short-term estimate; as the resource is open in virtually every direction, and the current resources are based on only 18 months of drilling, we are now confident that this resource will comfortably exceed 350Mlbs (19.4Moz gold equivalent).
The map accompanying the press release also hints toward even more good news for investors: there are positive spectrometer results (non-chemical assay) several kilometres from Rossing South for both primary rock-hosted (alaskite) drill holes and in secondary near-surface mineralisation (calcrete), offering even more ‘blue-sky’ to investors.
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