The Engineering Cost Study(ECS) is progressing well and this will feed into the Definitive Feasibility Study(DFS) planned for mid-year, to support the application for a Mining Licence. Metallurgical test work is being conducted on material from the areas of the planned starter pits, and final scoping of all infrastructure options is well-advanced.
Extract Resources is a Top 200 listed company on the Australian Stock Exchange, and is also listed in Canada on the Toronto Stock Exchange and on the Namibia Stock Exchange , as of late October 2009.
From humble beginnings as a small exploration company, Extract has achieved remarkable progress over the past 4 years and particularly so over the past 2 years since the globally significant discovery of Rssing South, just 6km from Rssing Uranium in February 2008. Extract has been one of the best performing resources stocks word-wide, with market capitalisation growing rapidly to over $2 billion (N$ 14 billion) over the past twelve months, says Stephen Galloway, the chairman of Extract Resources-Namibia.
Kalahari Minerals, a London AIMlisted company, with significant additional base metals and gold focus in Namibia, is the largest shareholder at more than 40%, while Rio Tinto Australia and Polo Resources are also significant shareholders, Galloway, who is the non-executive chairman of Extract Resources-Namibia, said this week.
In an interview with the Economist, Galloway said Swakop Uranium is a wholly-owned subsidiary of Extract which is tasked with developing the Husab Mine south of Rssing, for production in 2013. He added that Norman Green, a very successful project developer and seasoned mining professional, has been appointed to head this company in Namibia, while a global search is well-advanced to appoint the Group chief executive officer for Extract over the next month or two. He explained that the latest development after the 8 December 2009, exceptional chemical assay result from the Rossing South project was that the infill drilling in Zone 1 and Zone 2 continues to confirm the superior grades of this uranium deposit as compared to all other similar deposits in Namibia, and it also underline the global significance of the Husab Project.
The Engineering Cost Study(ECS) is progressing well and this will feed into the Definitive Feasibility Study(DFS) planned for mid-year, to support the application for a Mining Licence. Metallurgical test work is being conducted on material from the areas of the planned starter pits, and final scoping of all infrastructure options is well-advanced.
At the same time exploration drilling is continuing south of Zones 1 and 2 where significant New Zone discoveries were made in the latter part of last year, and where initial drilling intersections have confirmed similar alaskite mineralisation still open at depth and along strike, and exciting grades, he said.
Galloway told the Economist that the best way to visualise the benefits of the Rssing South deposit to Namibia is to look at the social and economic benefits the mining sector has brought to Namibia. , According to him, this will be an operation on a similar scale to the Rssing and Namdeb operations as well as having a very significant impacts on the ficus, foreign exchange earnings, employment, economic development of the Erongo Region, education and training in general and a myriad of spin-off and multipliers into the economy as a whole.
This will be one of Namibias biggest projects and the resource will support a long-life mine. While the mine infrastructure will be adjacent to the existing Rssing mine infrastructure, the social infrastructure is likely to be predominantly in Arandis and Swakopmund, he added. With regards to how the Extract Resources uranium exploration will contribute to promote the Namibia mining industry in the international market. He stated that Namibia has maintained high standards in the mining industry in general. Rssing has always been a flagship operation in the uranium industry and the development of a new world-class uranium mine, in addition to the Langer Heinrich and Trekkopje mines, and others, has the potential to put Namibia in a position to produce 20% or more of the worlds uranium and make a very strong impact internationally.
Swakop Uranium alone has the potential to produce more than 10% of the global demand and to be a significant player in the global industry, he said.
On the issue of the Exclusive Prospecting Licences (EPL), in relation to Rio Tinto and Kalahari Minerals-Namibia. His simple comment was that Rio Tinto and Kalahari Minerals are simply shareholders in Extract which has the EPLs. Kalahari Minerals has other EPLs for base metals and gold which it is advancing separately and of course Rio Tinto has its own licences. The fact that these two significant shareholders have other parallel activities in Namibia, is very positive in that they are also fully committed to Namibia and familiar with local conditions.
Galloway also maintained that Extract Resources-Namibia has a very positive relationship with government of the Republic of Namibia and all its organs. He pointed out that the Board is comprised 40% of Namibians and Namibians dominate local management and staffing.
Swakop Uranium is currently employing as many Namibians as possible to develop and ultimately run the mine, while of course bringing in specialist technical skills where these are not available locally he added.
On the part of Extract Resources relationship with the local people, Galloway mentioned that there are no communities within the current project area, but the broader communities in the Erongo Region are being engaged at all levels and relationships are very positive. Galloway spoke more of headway, forward movement, development, and advancement for Extract Resources-Namibia, when the Economist asked him about the major problems of the exploration in Namibia and how will Extract Resources deal with these problems. He said Extract has not encountered any major problems but support from Government agencies and utilities has been excellent.
He stated further that there are naturally additional responsibilities attached to developing mines in national parks, but this is being handled pro-actively with the relevant offices. According to him, the Paladin Langer Heinrich experience has been very positive and a good example of responsible licensing and development.
His views on what set apart Extract Resources-Namibia from any other competitors was that Rssing South resource is significantly higher grade than all other equivalent deposits in Namibia and is shaping up to be the largest deposit as well, placing it in the top global league. He went on to declare that early scoping studies have shown the economics to be robust to price fluctuations, and the location in relation to core infrastructure and the other uranium mines is very favourable. He said: the political and economic stability which Namibia offers, affords Extract, like the existing operations of Rio Tinto, Paladin, Areva and other new developments, to move forward with the confidence of tenure and policy consistency. No other emerging uranium- competitor country can show a 20-year track record of stability and consistency, making Namibia an easy choice for investors when compared with competitors in other uranium-focussed countries he said.
Galloway was finally happy with the positive reactions the company received from both the public, board of directors and shareholders when the Extract Resources and Kalahari Minerals were listed on the Namibian Stock Exchange on 29 October 2009.
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