Here is RBC's latest take on EXT:Source - RBC Equities Australia...

Here is RBC's latest take on EXT:

Source - RBC Equities Australia

FIRST GLANCE | COMMENT

February 18, 2010

Extract Resources Limited (ASX: EXT; 7.22; TSX: EXT)

More Positive Drilling Results from R?ssing South

Outperform

Speculative Risk

Impact
Positive

First Impression
On February 18, 2010, Extract announced further drill results from its R?ssing South project in Namibia. In the press release, Extract released the results of 75 drill holes from Zone 1, Zone 2 and the Zone 2 Southern Extension.

Most of the holes appear to be from infill drilling which we expect will result in an improvement in the resource quality. Extract reports that the system remains both down dip and along strike. The company currently has 14 drill rigs on site (8 RC and 6 diamond core) with the goal of upgrading the resource to the indicated level for use in a Definitive Feasibility Study. One additional rig is carrying out sterilization drilling for the proposed mill and tailings facilities.

In the results released on the 18th, there were many high grade intercepts, including 24 higher than 1000 ppm U3O8 (these intercepts average 15 metres and 1614 ppm). Overall, we estimate the weighted average grade above the 100 ppm cut-off for the 75 drill holes is approximately 478 ppm with an average width of 19 metres. This compares favourably with the currently defined 43-101 compliant resource of 267 million pounds grading 488 ppm (at a 200 ppm cut-off, the weighted average grade of these results is approximately 540 ppm).

The company is also deploying additional rigs to test exploration targets outside of Zone 1 and Zone 2. We anticipate they will hire four to six rigs. Given recent results, we think there is a very high likelihood of positive results from this campaign.

We continue to believe that the R?ssing South project is one of the best uranium exploration projects in the world and has already become a strategic asset to the future of the nuclear renaissance. We reiterate our Outperform, Speculative Risk rating.