......"Good luck everyone, sure hope EXT is in the frontline to go ahead"..............
Hehehe Very funny Harlee!
Here's a post submitted a couple of months ago by wantedman.EXT certainly has what it takes!!
-------------------------------------------------------------------------------------------------- ....."With thanks to robson1974 from another board:
From the BMO note which Initiated Coverage yesterday :-
******************************************************* BMO Capital Markets is initiating coverage of Extract Resources with an Outperform (S) rating. Extract is currently undertaking resource drilling and a feasibility study on the world-class Rössing South deposit.
1. Rössing South currently has 265Mlb U3O8 in resources, is the highest-grade alaskite deposit in Namibia and offers further upside potential, making it one of the most attractive undeveloped uranium assets in the world and a possible target for majors.
2. Synergies through utilisation of the existing plant at Rio Tinto’s (69%) neighbouring Rössing mine improve the project valuation by 15% and could offer upside potential to the current price.
3. Utilities and players in the nuclear industry have demonstrated a willingness to pay a premium in order to secure future uranium production. Extract is well positioned to capitalise on this demand.
The economic viability of a mine is dependent on four key factors: 1. deposit size; 2. grade; 3. technical risk – depth, ground conditions and mineralogy; and 4. location – proximity to infrastructure, geopolitical risk and climate.
For senior diversified mining companies and the largest single commodity mining companies, a fifth factor is arguably scalability: the ability of a deposit to be mined at a sufficient rate to produce high output volumes.
Rössing South Has the Requisite Credentials Rössing South, when examined in the light of the criteria outlined above, demonstrates the requisite credentials to be an economically viable uranium mine and one that is potentially attractive to senior producers.
Rössing South is one of the largest undeveloped uranium deposits in the world.
1. Deposit Size: In the 18 months since discovering Rössing South, Extract has developed an NI 43-101 compliant resource of 265Mlb of U3O8. Exploration is at an early stage and it is highly likely that there is upside potential.
2. Grade: Whilst an average grade of 0.0487% U3O8 does not look that impressive on a global scale, it makes Rössing South the highest-grade deposit in Namibia, placing it above the Rössing mine, which Rio Tinto has been operating profitably since the 1970s.
Low technical risk. 3. Technical Risk: Rössing South demonstrates a low level of technical risk. The deposit is open-pitable and hosted in competent country rock, allowing for steep pit cut-backs. The deposit is mineralogically analogous to the adjacent Rössing mine and is likely to follow a similar processing route. The only negative point is that the overburden becomes progressively deeper moving from north to south, going from outcrop to being covered by sand in excess of 100m.
Namibia offers a mining friendly jurisdiction. 4. Location: Rössing South is located in Namibia, within 45km from the port of Walvish Bay. The site is in proximity of powerlines and water pipes, and the northern end is only 5km from the existing plant at Rössing. Namibia is one of the most mining-friendly jurisdictions in the world.
5. Scalability: The combination of large deposit size, high regional grade and low technical risk gives Rössing South scalability. BMO Research estimates that Rössing South has the potential to produce 14.8Mlb U3O8 per annum, which would place it among the largest uranium mines in the world.
As demonstrated in more detail over the following pages, Rössing South, on balance, has the best combination of the above attributes. This makes it potentially the most attractive undeveloped uranium resource known today".............................
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