| Mon 15 Mar 2010, 9:00 | | EXT - Extract Resources Limited - Rossing South Project Feasibility study update |
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EXT - Extract Resources Limited - Rossing South Project Feasibility study update
Extract Resources Limited
Registration No. ABN 61 057 337 952
Registered as an external company in Namibia
ISIN Code: AU000000EXT7
NSX Share Code: EXT
Rossing South Project Feasibility Study Update
Australian-based uranium mine development and exploration company, Extract
Resources Limited (ASX/TSX/NSX: EXT) ("Extract" or "the Company") reports that
the Rossing South Definitive Feasibility Study ("DFS") continues to progress
well and is on track to confirm the project`s potential to be 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.
The size of the Rossing South mineralized system continues to grow with strong
drilling results continuing from Zones 1 and 2. There are encouraging
indications of significant mineralization on the western limb of the Rossing
South antiform and high grade mineralisation in both zones.
Extract aims to announce an updated Rossing South resource in Q3, 2010. This
revised resource estimate will incorporate infill and extensional drilling that
has been completed since July 2009. The updated estimate is expected to increase
the overall size and confidence levels of the Rossing South resource.
As part of the ongoing process of optimising the currently defined resource, the
most recent mine plan incorporates an average stripping ratio of 6.9:1 over the
life of mine. Open pit mining studies indicate that approximately 120 Mt of pre-
strip material is to be removed to enable ore movement rates of approximately 15
Mtpa to feed the processing plant.
As outlined in the Preliminary Cost Estimates ("PCE") released on 3 August 2009,
several items were excluded from the initial capital costs estimate. Extract is
continuing to refine the cost of independently developing Rossing South,
including the costs of using either an owner-operator mine fleet or contract
mining. Studies to fully define the costs associated with procurement of water,
power and acid delivery, together with external infrastructure including rail
and road, are ongoing.
Extract, together with its technical consultants, continues to undertake value
engineering to optimize the development of the project and will provide an
update following completion of the DFS, completion of which is currently
commencing operation in Perth. Extract expects this work to confirm overall
process plant recovery as well as reagent and acid consumption.
Extract notes that capital costs for the processing plant and annual operating
costs are currently expected to remain in line with the PCE.
On behalf of the Board of Directors,
Jonathan Leslie
CEO
Windhoek, 15 March 2010
Registered Office
Swakop Uranium (Pty) Ltd
3 Schutzen Street
Windhoek
Namibia
Sponsor
IJG Securities (Pty) Ltd
Member of the NSX
100 Robert Mugabe Avenue
P O Box 186, Windhoek, Namibia
Registration No. 95/505
Date: 15/03/2010 09:00:02 Produced by the JSE SENS Department.
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