New Zone of Mineralisation - Zone 4? 09 October 2009
Extract Resources, in which Kalahari Minerals* owns approximately 40%, has announced that drill results confirm a new zone of mineralisation at Rossing South. The new zone is south of the previously released Zone 3 drilling, with two holes containing highlights of 55m @ 1,474ppm and 53m @ 1,616ppm U3O8.
These intercepts are phenomenal, and are some of the widest and highest grades yet. Specifically, the average grade of over 1,500ppm is over 4x higher than the headgrade at Rossing. Simplistically, this would result in operating costs 4x lower than those at Rossing (ie, lower than US$10/lb) if a larger resource could be proven up at such grades.
We always knew that Rossing South was huge, but these drill results come as a (very positive) surprise for two reasons:
**it supports the potential for a Zone 4 (next south of Zone 3), with grades and widths of the orebody at least on par with Zone 1/2, if not better; and **it opens the potential for a new ‘band’ of mineralisation to the west of Zones 1/2/3, as the new zone represents the western limb of a fold, whereas Zones 1/2/3 are on the eastern limb, meaning there is potential to discover Zone 1/2/3 western-limb mineralisation.
We have previously expressed our confidence that the total resource will exceed 560Mlbs. This news, along with the 31 August 2009 announcement that Zones 1 and 2 likely meet at depth, not only gives us increased confidence that a 560Mlbs resource will ultimately be defined, but also that the resource could be well in excess of 600Mlbs.
In all likelihood, Zone 2 and Zone 3 will coalesce, and the entire 8.5km strike length will be variably mineralised.......(my bold)
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)