| Tue 7 Jun 2011, 11:11 | | EXT - Extract Resources Limited - Husab project established as the 4th largest |
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EXT - Extract Resources Limited - Husab project established as the 4th largest
uranium deposit in the world
Extract Resources Limited
Registration No. ABN 61 057 337 952
Registered as an external company in Namibia
ISIN Code: AU000000EXT7
NSX Share Code: EXT
HUSAB PROJECT ESTABLISHED AS THE 4TH LARGEST URANIUM DEPOSIT IN THE WORLD
Highlights:
- Resource estimate updated, based on further results from continuing drilling
programme at Husab Uranium Project.
- 33% increase in Total Global Resource since August 2010 resource
estimate.
- Maiden Measured Resources in Zones 1 & 2 of 84 M.lbs U3O8.
- 39% increase in Zone 1 & 2 Measured and Indicated Resources to 358
M.lbs U3O8 (compared to August 2010 Indicated Resources).
- 18% increase in Inferred Resources to 130M.lbs U3O8, including
definition of maiden Inferred Resource at Zone 5.
- Substantial increase in resource inventory represents first success from
M.O.R.E.(Mine Optimisation and Resource Extension) programme. An updated
reserve estimate, based on the revised resource model, is scheduled for H2
2011 and is expected to demonstrate a significant increase in mine life.
- Extensive further exploration potential remains; Extract intends to maintain
the pace of its drilling programme.
Extract Resources Limited (ASX/TSX/NSX: EXT) ("Extract" or "the Company") is
pleased to announce an updated resource estimate for Zones 1 - 5 of its Husab
Uranium Project in Namibia. The revised estimate follows evaluation of a
total of 1,725 drill holes and has been prepared in accordance with JORC Code
and Canadian NI43-101 guidelines.
Since discovery of the Husab deposit in early 2008, the Company has conducted
an intensive drilling programme to define resources to support the development
of a long-life mining operation at the Husab Uranium Project. Figure 1 (as per
detailed announcement on Company website: www.extractresources.com)
demonstrates the growth in the total resource inventory and classification.
Following completion of the Company`s Definitive Feasibility Study on Zones 1
& 2 of the Husab Uranium Project (announced on April 5 2011), the Company
initiated a M.O.R.E. programme aimed at substantially increasing the current
mine life and optimisation of the process plant and mining operations. The
significant increase in resources in the updated estimate indicates
substantial progress towards this objective.
The next phase in the M.O.R.E. programme, expected in H2 2011, is to generate
a revised mine plan based on the updated resource model. It is expected that
this will result in a material increase in reserves and mine life. Measured
and Indicated Resources at Zones 1 and 2 are available for conversion to
Reserves, and account for 357.7M.lbs U3O8 or 73% of the Total Resource.
High resource grades at Zones 1 and 2 have been maintained since the previous
resource statement (ASX/NSX release 10 August 2010), confirming that the
drilling adequately defines the inherent grade distribution and continuity
within the deposits.
Extract`s drilling programme continues, with a target to expand and improve
the classification of existing deposits, and to discover new areas of
mineralization. Five drill rigs are currently operating on site with 100,000
metres planned to be drilled to the end of Q1, 2012. A further resource update
is expected in H1 2012.
Extract`s CEO and Managing Director, Jonathan Leslie, said:
This resource update reaffirms Husab`s position as one of the world`s largest
uranium resources and the best undeveloped uranium deposit in the world. The
resource update also represents the first success from our M.O.R.E. programme,
which is delivering on its objectives and which we expect will continue to add
further value.
"Extract has defined resources of more than 500 M.lbs U3O8, at the Husab
Uranium Project from Zones 1 - 5 and the Ida Dome deposits. We expect that the
resource base will continue to increase with continued drilling of known
deposits and new discoveries. In particular we look forward to the results of
further drilling at the Middle Dome, Pizzaro and Salem prospects to the south
of Zones 1 and 2.
"Together, with the completion of our Definitive Feasibility Study, the
updated resource statement underlines the tremendous potential for Husab to
become a nationally and globally significant, long life mine. Once in full
production, Husab is expected to become the largest producer of uranium in
Namibia, and one of the three largest producers in the world."
Additional detail on the resource update and a summary of the resource
estimation methodology can be found on the company website
www.extractresources.com.
Siobhan Lancaster
Company Secretary
Windhoek, 7 June 2011
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: 07/06/2011 11:11:00 Produced by the JSE SENS Department.
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