| Fri 2 Jul 2010, 10:48 | | EXT - Extract Resources Limited - Rossing South Project Update |
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EXT - Extract Resources Limited - Rossing South Project 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 Update
Australian-based uranium mine development and exploration company, Extract
Resources Limited (ASX/TSX/NSX: EXT) ("Extract or `the Company) is pleased to
report that work on advancing the Rossing South Project development is
progressing well and provides the following update.
Resource Update
The Rossing South resource upgrade remains on track for Q3 of calendar year
2010. Since the maiden Zone 2 resource release (ASX announcement 22 July 2009)
Extract`s technical team has focused on infill drilling Zones 1 and 2 with the
aim of upgrading the Inferred Resource to Indicated status. This upgrade is
expected to define a significant resource that can be converted to reserves and
hence a mining inventory for the Definitive Feasibility Study ("DFS").
Some drilling to define Measured Resource has also commenced at Zone 1. However,
the majority of the results from this work will not be available in time for
inclusion in the Q3 resource 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. The aim of this
drilling has been to define a maiden Inferred Resource that is also expected to
contribute to the Q3 resource update.
Exploration and resource definition drilling completed to date at Rossing South
has only focused on the northern most eight kilometers of a 15 kilometre long
target. Once priority resource definition drilling has been completed additional
exploration drilling will be undertaken.
Definitive Feasibility Study Update
The DFS continues to progress well and is on track for completion in Q4, 2010.
It is expected that the DFS will 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.
Results from the recently completed pilot plant testwork program are still being
returned and interpreted with available results encouraging and providing
further support for the base case flow sheet.
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. This
will be the first explosive rock breaking at Rossing South.
Water Update
The company`s 100% owned Namibian subsidiary, Swakop Uranium (Pty) Ltd, which
holds Exclusive Prospecting Licence 3138, within which Rossing South is located,
has recently signed an agreement with NamWater. As reported by NamWater on June
11, 2010, the agreement between NamWater and other potential resource customers
is to co-operate in the financing, designing, procurement, engineering,
construction, commissioning and operation (including maintenance) of a coastal
desalination plant with the capacity to ensure sufficient water for the
company`s current and future demands.
Mining Licence Update
Work on the Environmental Impact Assessment and Management Plan is proceeding on
schedule in parallel with preparation for a Mining Licence application. The
outcomes from this work will be used to support a Mining Licence application
over Rossing South before year end.
On behalf of the Board of Directors,
Jonathan Leslie
CEO
Windhoek, 23 June 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: 02/07/2010 10:48:01 Produced by the JSE SENS Department.
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