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Extract Resources says Rossing South upgrade on track for Q3, to file DFS before year-end


Extract Resources (ASX, TSX:EXT) said that the upgrade for the Rossing South uranium resource at its Husab uranium project in Namibia is on track for Q3, and it is expecting it to define a significant resource that can be converted to reserves and hence a mining inventory for the Definitive Feasibility Study (DFS).

Since the maiden Zone 2 resource was released last July, Extract has focused on infill drilling Zones 1 and 2 to upgrade the inferred resource into the indicated status.

Some drilling to define a measured resource has also commenced at Zone 1, yet most of its results will not be available in time to be included in the Q3 upgrade. Additional drilling has also been completed in the western limb position of the Rossing South anticline and south of Zone 2 on the eastern limb with the aim to define a maiden inferred resource that is expected to be reflected in the upcoming update.

Exploration and resource definition drilling completed to date at Rossing South has only focused on the northernmost eight kilometers of a 15 kilometre long target. The company will conduct additional exploration drilling upon the completion of priority resource definition drilling.

Meanwhile, the DFS is on track for completion in Q4 with Extract expecting it to confirm the project's potential as “one of the world's largest uranium mines". The base case mine plan remains low risk, bulk tonnage, open pit mining, with ore processed through a conventional agitated tank leach plant.

Available results from the recently completed pilot plant testwork that are still being returned and interpreted.

Work is set to commence in the next week to excavate a bulk sample from the northern end of Zone 1 to be used for confirmatory comminution testwork, which will be the first explosive rock breaking at Rossing South.

Extract also provided an update on its wholly owned Namibian subsidiary Swakop Uranium, which holds the Exclusive Prospecting Licence 3138 hosting Rossing South, which has recently formed an agreement with NamWater and other potential resource customers to co-operate in the financing, designing, procurement, engineering, construction, commissioning and operation of a coastal desalination plant to ensure sufficient water for the company's current and future demands.

The company also added that work on the Environmental Impact Assessment and Management Plan was proceeding on schedule, with its results set to be used in preparation of a mining license application over Rossing South before year-end.

Last year’s scoping study said that the project had the potential to have a mine life of more than 20 years with an annual production rate of 15 million pounds (Mlbs) of uranium. The scoping study was conducted using an average grade of 487ppm, which is lower than the grades produced by drilling at Zones 1 and 2.

Other assay results included mineralization over 17 metres at 2,745 ppm (parts per million) uranium, 37 metres grading 2,001 ppm uranium, 10 metres grading 1,665 ppm uranium, 12 metres grading 1,522 ppm uranium, 18 metres grading 1,419 ppm uranium and 53 metres grading 1,265, ppm uranium.

Uranium and copper explorer Kalahari Minerals (AIM: KAH) holds a 40.6% interest in Extract Resources.

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