Kalahari affiliate Extract Resources extends high grade uranium zone at Rössing South

Extract Resources (ASX, TSX, NSX: EXT) has reported "exceptional" infill drilling assay results and the emergence of a new zone of uranium mineralisation at Rössing South, part of its world-class Husab Uranium Project in Namibia.

Kalahari Minerals (AIM: KAH) subsidiary Kalahari Uranium Limited holds a 41.06% interest in Extract Resources.

Strong drilling rates continue to support the next resource update which will form the basis for completing the Rössing South Definitive Feasibility Study. The company remains committed to the development of a mine at this globally significant project.
There was an outstanding intercept of 68 metres grading 5767 ppm U3O8 in Zone 1 along with a new zone of uranium mineralisation indicated at Rossing South based on strong hand held spectrometer results from RC drilling samples.

Jonathan Leslie , chief executive officer and managing director, said the Known dimension of the Rössing South mineralised system is now defined over eight kilometres with indications of high grade mineralisation on southernmost line of drilling.

There are seven kilometres of prospective 15 kilometre trend still to be tested.

The company said the first firing of explosives at Rössing South has been undertaken and there has been a steady flow of exceptional high grade chemical assays received from infill and resource extensional drilling.

Confirmation chemical assay results are required to fully quantify the significance of these results, but based on past experience the company believes a new granite hosted zone of uranium mineralisation is emerging.

Chemical assay results will be released when available. Importantly, mineralisation remains open down dip and along strike with additional drilling expected to increase the known dimensions of this zone.

Additional drilling has been planned in this area to follow up on the highly encouraging results returned to date.

Only the northernmost nine kilometres of the 15 kilometre long Rössing South target have been drill tested.

The prospective stratigraphy for hosting granite hosted uranium mineralisation continues under the Rössing South gravel plain to the Salem area.

Exploration drilling over this area will continue, but given the enormous size of the target zone will be ongoing for some time to come.

Sufficient drilling has now been completed to define an updated resource estimate for Rössing South within the third quarter of calendar 2010. The main aim is to upgrade the current Zone 1 and Zone 2 Inferred Resource to Indicated status.

The Indicated Resource is expected to form the basis of the DFS mining inventory so that reserves can be defined.

The Husab Uranium Project is Extract's main asset, located approximately 45km north-east of Namibia's main port - Walvis Bay. The project is strategically located within Alaskite Alley, an area that hosts several world class uranium deposits.

Two of these deposits are already in production - the Rossing Uranium deposit to the north which supplies 8% of the worlds uranium, and the Langer Heinrich deposit to the east - both of these are located within 30km of Extract leases. Kalahari chairman Mark Hohnen commented in a separates statement: "As Extract approaches its production phase at Zones 1 and 2, these further exceptional assay results give additional credence to Husab's ability to host a truly world-class operating mine in the near future.”

"The new zone of mineralisation further compounds the evidence of the significant potential for Husab to accommodate multiple mining operations, providing considerable additional standing to the project as a whole .... Importantly, this emerging mineralised zone remains open down dip and along strike, and Extract will now initiate an additional drilling campaign,” Hohnen added.