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Market:	ASX TSX
Sector:	General Mining
EPIC:	EXT
Latest Price:	8.60 (0.35% )
52-week High:	10.73
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Market Cap:	2,159.97M

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Extract Resources

Extract Resources (ASX: EXT) is a Perth-based, Africa-focused uranium explorer that has a large land position of 2653km2 over several licences in Namibia.

Kalahari notes emergence of new uranium zone at Extract’s Rössing South deposit

Thursday, September 09, 2010

Kalahari Minerals PLC (LON:KAH) noted the latest update from Extract Resources’ (ASX:EXT, TSX:EXT, NSX: EXT) Husab uranium project in Namibia, where chemical assay results confirm the emergence of a high grade continuously mineralised strike of 1.7km at Zone 5 of the Rössing South deposit.

Kalahari subsidiary Kalahari Uranium Ltd holds a 41.15 percent interest in Extract.

Kalahari chairman Mark Hohnen said the latest update provides further credence for the commissioning of multiple mining operations across Husab, adding: “Importantly, these assays include an intersection of 29 metres, grading 1,653 ppm U3O8 (parts per million triuranium octoxide) from 279 metres, which ranks within the top 2 percent for metal content within the current Husab database, confirming Zone 5, which remains open along strike and down dip, as a high priority exploration target.”

"In addition to the drilling programme underway at Zone 5, Extract also has a further 6km of the entire 15km Rössing South Anticline which is yet to be drill tested. This additional exploration work will continue in tandem with resource drilling at Zones 1 and 2, with the objective of upgrading the confidence levels of early mining areas in Zones 1 and 2 from Indicated to Measured resources," Hohnen said.

Extract said in its update that Drilling has now shown that the geological structure hosting the uranium mineralisation at Rössing South is consistently mineralised over a strike length of nine kilometres.

Zones 1 and 2 at Rössing South, which are the subject of the definitive feasibility study (DFS) which is currently in progress, together make up the northern 5.5km of the total identified mineralised strike length. Approximately 6km of the highly prospective Rössing South Anticline remain to be drill tested.

Resource drilling at Rössing South continues with 17 drill rigs currently in operation, 10 of which are diamond drills and the remainder RC percussion.

The principal focus of current drilling is to upgrade the confidence levels of early mining areas in Zones 1 and 2 from Indicated to Measured resources. To this end, a drill spacing study will commence shortly.

Work on the DFS is continuing, and completion is targeted for Q4 of calendar 2010.

In parallel with the DFS and Environmental Impact Assessment study, early planning for a Mining Licence application for Husab's Rössing South has commenced, Extract said, and it anticipates lodging the application in Q4 2010.

“A large number of additional uranium exploration targets have been identified within the Husab project, many of which have had no previous work carried out on them. During the next 12 months, reconnaissance level exploration will be completed on many of these targets in order to assess their potential to host economic concentrations of uranium mineralisation,” Extract added.

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